French poultry market under strain amid increased competition

There is a need for French poultry industry to work on its strengths and focus on quality amid growing competition.

French poultry meat production fell by 4.1% to 1.1 million tonnes in the first eight months of 2009, compared to the same period last year. Following a short-lived recovery in 2007 and stabilisation in 2008, the number of birds slaughtered fell by 1.9% to 605.4 million head.

Annual domestic poultry meat consumption, which stood at 1.57 million tonnes or 24.6 kg per capita in 2008, registered a 2% rise in the first nine months of 2009.

Poultry meat ranks third in France after pork and beef and has experienced strong growth over the last three decades. The share of poultry meat increased from 15% in the early 1970s to 23% in 1990 and 28% in 2008.

However, overall consumption is now tending to stagnate in what can be described as a mature market.

Hypermarkets and supermarkets accounted for 85% of sales. However, their share is now at a standstill, due to increasing pressure from discount stores. At the same time, and despite the economic crisis, markets and small retail outlets have regained some of the popularity they had lost to the detriment of large stores.

Faced with fierce competition from emerging countries such as Brazil and Thailand, and also from other EU states, the French poultry market could nonetheless benefit from the relatively low prices and good nutritional quality of poultry meat, according to the French poultry farming technical institute (ITAVI).

The industry needs to rely on its strengths and make the most of the low environmental impact of poultry farming, as well as its safety and positive image in terms of health. Other criteria such as animal welfare, freshness and proximity to market should also weigh in the balance.

Substantial progress has been made by the French industry over recent years, and excellent health standards have been achieved. However, countries such as Germany, Spain and Poland have developed at a quicker pace and France's competitiveness within Europe is now in jeopardy.

Greater emphasis on traceability and quality, combined with a single industry-wide structure and common strategy, should help the French market to meet the challenges ahead, ITAVI deputy manager Jean Champagne said.