1. Fruits and vegetables quotations in France The RNM System (Réseau des nouvelles des marchés - Markets News Network) Roma 19/12/2012 Monique Meizels Chef du service des bases d’information économique Direction Marchés, Etudes et Prospective

2. Summary The Markets News Network : assignments, organization and methods Conjunctural crises assessment and monitoring Goals and valorization of Fruits and vegetables quotations

3. The RNM assignments : the network has aims to : Get informations on market prices, observe transactions on fresh and perishable agro-food markets at each marketing stage in the business chain. Establish reference official quotes for fresh and perishable agro-food products at different marketing stages. Monitor and survey the economic and conjuncture situation on agro-food markets Publish and disseminate information through news and quotations reports for : Public authorities and administration Customers and paying subscribers Others nformation users grandezza testo didascalie

4. The importance of RNM in the agro-food prices monitoring system Products / Marketing stage Production Prices Forwarding stage/ 1st marketing stage Prices Wholesale Markets Prices Retail Prices Fruits & Vegs RNM RNM + Panels Flowers RNM RNM + Panels Pig RNM RNM + Panels Poultry RNM RNM + Panels Cattle QuotationsRNMRNM + Panels Milk products QuotationsRNMRNM + Panels Fishing Fish auction placesRNMRNM + Panels Wines QuotationsSurveysPanels Grains SurveysQuotationsSurveysPanels

5. SURVEYS AND PROCEDURES ARE COMPLYING WITH A CERTIFIED QUALITY MANAGEMENT SYSTEM A network with 78 agents in 17 branches located on the main production areas. All network activities are realized under a certified ISO 9001:2008 Quality Management System aiming at assessing the reliability and statistical representativity of collected information. These activities are worked out on a yearly programmation basis with precise assignments and requirements from FranceAgriMer.

6. PRICE MONITORING METHODS SurveyMethodsFrequency Production prices Face to face inquiries on production markets Daily/weekly Auction places Prices collecting (mainly in the West of France) Daily/weekly Forwarding Stage Phone surveys - 300 businesses - Daily Importation Phone surveys (ports) or face to face on international markets (Perpignan/Saint-Charles) Daily Wholesale stage Face to face inquiries on wholesale national markets (MIN) > 100 000 t, 270 businesses surveyed Daily Retailors Prices collection in supermarkets (150 + 30 Hard Discount stores) + 30 Organic stores Weekly

7. ASSESSING CRISES IN THE FRUITS & VEGETABLES’ MARKETS Vosges Matin.fr RNM surveys are widely used to assess conjunctural crisis as it is defined by specific regulations. A conjonctural crisis is evidenced at forwarding stage when the average current price is considered abnormally low compared to the 5 years average reference, over a period of 3 to 5 days.

8. THE MARKET INDICATOR : A CRISIS ASSESSMENT TOOL Example : cherries in 2011 36 marketed references – up to 17 quotations a day A marketed reference is a combination of a product, variety, size, origin, quality, packaging Each of these combinations is valuated at its own price Crisis assessment requires a national and representative price monitoring tool the evolution of which enables to assess and monitor a conjunctural crisis.

9. THE MARKET INDICATOR CAN BE AN APPROPRIATE ANSWER Calculation of the market indicator : each business day, a weighted average of quotes considered as representative of the prices trend of a given product is calculated ; Calculation of the week reference as an average of market indicators for the last five seasons except for the highest and the lowest values. Comparison of the deviation between the MI of the day and the five- year average reference. 25 products followed by market indicators (12 fruits, 13 vegetables)

10. THE CRISIS INDICATOR : AN EXAMPLE OF TOOL TO RECOGNIZE THE STATE OF CRISIS The statement of the crisis involves two parameters whose level depends on the product - The threshold below which the price is considered "abnormally low" varies from 10 to 25% according to the perishable or storable nature of the product. - The period during which the situation is observed abnormally low prices varies between 2-5 days depending on the duration of the campaign product When the market indicator is below the "abnormally low“ level for a period thus defined, one considers that the product comes into conjonctural crisis When the market indicator is back above the threshold "abnormally low" for more than 3 consecutive days, the product is then considered out of the conjonctural crisis

11. MONITORING CRISES IN FRUITS & VEGS : PEACH AND NECTARINES IN 2011 A 42 DAYS CRISIS SINCE JUNE 16TH

12. CRISIS ASSESSMENT TRIGGERS REGULATION MECHANISMS THROUGH : Crisis information on the Réseau des nouvelles des marchés Web site Distribution Margins lowering agreements signed between the Government and supermarkets companies (since 2011) These agreements aim at reflating F&V sales thanks to lowered distribution margins and consequently retail prices. This new tool is under public evaluation.

14. AGRI-FOOD PRICE MONITORING ASSIGNMENTS To reinforce agri-food markets transparency and fair business through reliable, neutral and in real time price information for all players in the sector. To deliver reliable and neutral information to all partners, i.e. : EU Government and administration INSEE (National Statistics Instititute) The “Observatoire de la formation des prix et des marges” (the prices and margins observatory). (OfPM) Professional sectors organizations The press The consumers To Assess the conjunctoral and economic situation in agri-food markets and to alert when crises are likely to occur. grandezza testo didascalie

15. FOR A BETTER KNOWLEDGE... (For more information ? ) The RNM website http://www.rnm.franceagrimer.fr The RNM website for Smartphone http://m.rnm.franceagrimer.fr Grazie per la vostra attenzione Merci pour votre attention