Strategy in The News - Sarah Mrabet

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 3

The protests led by farmers starting in France and spreading to Belgium, the Netherlands, and Spain,

have significantly disrupted traffic by blocking major highways, border crossings, affecting local
commutes and international trades.

STEEP Analysis. French farmers’ unions on Thursday called a halt to protests in which they’ve
blocked traffic with their tractors and dumped manure and rotting produce in front
Why are the Framers protesting? of government buildings to make their point.

• Social: The protests reflect solidarity among farmers has been


highlighted and deep-rooted social unrest among farmers who
feel marginalized and overlooked by policy-makers
• Technological: Pressures to adopt sustainable and
environmentally friendly farming technologies rising farmers
costs
• Economic: Inflation and rising costs for energy, fertilizers, and
transport. Squeezed margins for farmers due to cheap imports
from Ukraine, for which the EU has waived quotas and duties
since Russia's invasion especially for sugar, grains and
poultry.
• Environmental: Strict environmental regulations, aimed at
combating climate change, are seen by farmers as
burdensome and disconnected from their reality (ex.
requirement to leave 4% of farmland fallow)
• Political: Protests have become a political hotbed, with
implications for the looming European Parliament elections

Sources:https://www.reuters.com/world/europe/why-are-french-farmers-protesting-2024-01-29/ 1
Delving into Five Porter’s Powers are crucial for understanding the strategic landscape factors
influencing European agriculture.

Supplier : Farmers as suppliers exerting pressure for better prices and fewer regulations.
Buyer: Government and retailers pushing back on prices, leading to tensions.
New Entrants: The role of imports from Ukraine and other regions affecting local farmers.
Substitutes: Low influence of organic food or processed food industry as a substitute (ex. canned versus fresh).
Competitors: Larger farming enterprises have more negotiating power with buyers and can achieve economies of scale.

2
Agricultural Upheaval require more proactive Strategies including policy adjustments, negotiation strategies with
farmers, and potential long-term reforms to address the underlying causes of the protests

“Prime minister Gabriel Attal announced on Jan. 26 the scrapping of diesel tax
increases for farmers. He also set out steps to reduce red tape and offered extra
aid including for farmers affected by a cattle disease in the south.” STRATEGIC ACTIONS
• Subsidy Retention: The government has withdrawn plans to decrease
subsidies on agricultural diesel, which is a significant expense for farmers.
• Regulatory Adjustments: There has been a commitment to stop imposing
stricter agricultural regulations than those required by the EU, with specific
mentions of ending the practice related to pesticide bans in France before
EU-wide decisions are made.
• EU Advocacy: President Macron has been pushing for changes at the EU
level to address farmers' grievances, particularly concerning the EU's 2023
nature restoration law, which mandates that member countries introduce
environmental measures on a portion of their land and sea by 2030.
• Financial Aid: The government has announced an emergency package,
particularly supporting livestock farmers and wine producers, with a budget
of around 600 million euros..
• Law Enforcement: The French government has deployed 15,000 police
officers to manage the protests and protect critical infrastructure like the
Rungis market.

Sources:https://www.reuters.com/world/europe/why-are-french-farmers-protesting-2024-01-29/ , https://www.reuters.com/world/europe/french-farmers-block-highways-around-paris-protest-
reach-capital-2024-01-26/ 3

You might also like