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The Bordeaux Commercial Court has sentenced the Cordier and Ginestet trading houses to pay 200,000 and 150,000 euros in damages to the winegrower Rémi Lacombe (Château Bessan-Segur in Médoc). Lacombe had argued in his lawsuit that the two négociants had put him under pressure to sell barrel wines to them at prices below the production costs. In ten transactions in 2021 and 2022, they paid an average of only 1,200 euros per tonneau (900 litres). Lacombe cited production costs of 1,600 euros per tonneau, while the court determined a sales price of 1,500 euros. The prices offered were "unreasonably low". Lacombe and other vintners reported during the trial that producers were "blacklisted" and boycotted by the négociants as soon as they rejected the low offers. The defendants described the purchases as a "classic brokerage deal with a fair price for the quality of the wine".
This was the first time the court had applied the "Egalim law", which has been in place since 2018. It states that the seller, not the buyer, must set the price for his goods. The law defines the damage "suffered by a supplier of agricultural products or foodstuffs when its buyer sets an unreasonably low selling price". This could have a significant impact on the entire French agricultural sector. A wine trade expert expresses his concerns: "If winegrowers can sue two years after a deal because of unreasonably low prices, there is a risk of legal uncertainty for all contracts concluded. However, the law does not clearly define which indicators and means of pressure are relevant. This could block the entire market for agricultural commodities".
The judgement is not yet final and the convicted parties can appeal. However, in a reaction to the case, French Prime Minister Gabriel Attal has announced that he will present a new law by the summer to strengthen the Egalim system and make prices fairer for farmers and producers.
(al / Source: vitisphere)