May 15, 2012

France's farm, food exports drop for the second month

The farm and food exports of France fell for a second month in March, sliding 3.6% as grain consignments slumped.

Exports of farm products and food fell to EUR5.25 billion (US$6.8 billion) from EUR5.45 billion (US$7.02 billion) a year earlier, the Agriculture Ministry said in an online report. February's drop was the first annual slide since January 2010.

France is the largest EU farm producer and in the 27-nation bloc trails only the Netherlands and Germany in value of agricultural exports, World Trade Organization data show. Farm products and food contributed a EUR1.19-billion (US$1.53 billion) surplus to France's current account in March.

"Sales of grains are in very strong decline, especially on the destination Morocco," the ministry said.

France's grain shipments excluding rice fell to EUR749 million (US$964.73 million) from EUR963 million (US$1,240 million) in March last year, the ministry reported. Oilseed and protein-crop exports rose to EUR150 million (US$193 million) from EUR144 million (US$185 million).

The value of soft-wheat exports fell 37% on fewer shipments to Morocco and falling prices, while durum-wheat exports dropped 53% on lower demand from Algeria, the ministry wrote. Corn exports climbed 28% on deliveries to the Netherlands, Spain and the UK, the report showed.

France imported EUR4.07 billion (US$5.24 billion) of agricultural goods and food in the month, compared with EUR4.17 billion (US$5.37 billion) in March 2011, the ministry said.