October 25, 2006

 

Agricultural production falls in France

 

 

In 2005, agricultural production in France fell 3.3 percent in volume from 2004 due largely to a decrease in vegetable and grain production, according to a USDA Foreign Agricultural Service report released Tuesday (Oct 24).

 

This decrease is attributed to a reduction in vegetable production (minus 6.4 percent) and a 8.8 percent decrease in grain production, the report said. Much of the decrease in grain production was due to the decrease in grain yield and dry conditions which affected corn production.

 

Total animal production slightly increased 1.1 percent, with a reduction in poultry production (-2.9 percent), due to bird flu, according to USDA figures.  

 

In 2005, beef prices increased 4.2 percent; while prices of dairy products fell slightly.  The outlook for food prices in 2006 is estimated at an overall 1.2 percent increase, coming mostly from meat such as poultry, the USDA said.

 

In 2005, meat consumption increased 0.8 percent mainly for veal, mutton and poultry, despite bird flu at the end of the year.

 

The report also noted food consumption for the first half of 2006 shows an overall increase of 2.2 percent, with sales on the rise for frozen foods and fresh products (except dairy). 

Food trends have altered in France.  French consumers now desire food products offering better taste, increased health benefits and more convenience. Food safety scares have raised consumer concerns about sanitation and safety issues, the report noted.  

 

These concerns have led to greater demand for "natural" and organic produce as well as fish and seafood products.

 

USDA also noted there  has been heightened demand for  easy-to-prepare foods, single and double portion packs, and frozen or microwavable meals. 

 

Product safety and sanitary standards affecting imports into France are increasingly established at the EU level, however, additional French regulations affect imports as well.

 

Efforts to harmonize EU import regulations and to implement commitments under the World Trade Organization (WTO) may abolish conflicting regulations.

 

The report noted consumers are receptive to new developments in food products but want more information on product contents and manufacturing processes.  France has labeling requirements for both domestically-produced and imported food products containing genetically-modified products or biotech-derived ingredients or additives.

 

USDA noted the French Government also encouraged the development of quality marks such as "Label Rouge" (Red Label) for meats, poultry and fruits and vegetables, which guarantee production under established conditions and product origin labels from a certain region. 

 

The government also continues a certification program which guarantees that product preparation, manufacturing and packaging processes follow certain specifications.

 

These have been well received by French consumers as were the organic food programmes, USDA said.

 

French measures to support the organic sector include spending EUR 4.5 million over the next three years to enhance consumers' knowledge of the organic sector and EUR 50 million over five years to support the conversion from traditional to organic farming. 

 

The report added France is a major importer of seafood products as domestic production is significantly lower than demand. 

 

In 2004, the best export opportunities for US seafood were Alaska Pollack fillets, surimi base, salmon, lobster, and scallops. 

 

For 2005, salmon remained France's preferred fish.  US salmon exports to France in 2005 grew due to a favourable exchange rate and a French media campaign against farm-raised European salmon. 

 

France is the largest market for surimi in Europe and the United States is France's leading supplier of surimi base. 

 

However, the report stressed that opportunities in the meat market are limited given the import quota on meat and stringent EU veterinary regulations.  Pork meat imports amounted to US$3 million and beef imports US$491,000.  Bison meat is getting more and more popular in France; mostly of Canadian origin, but there might be opportunities for U.S. products. 

 

The USDA noted that currently, the annual EU meat import quotas are 11,700 tonnes of beef yearly for Canada and the United States and 70,000 tonnes for pork  from all other countries.

 

 TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS

CONSUMER-ORIENTED AG TOTAL			FISH & SEAFOOD PRODUCTS
FRANCE IMPORTS			(In Million of Dollars)
(In Million of Dollars)	2003	2004		2002	2003	2004
United States	372,186	429,355	United States	140,909	135,531	163,560
Spain	3,517,466	4,006,234	United Kingdom	347,160	409,177	425,624
Belgium	2,888,263	3,372,322	Norway	239,356	295,497	320,290
Netherlands	2,754,777	3,191,852	Spain	215,796	234,776	267,978
Germany	2,735,628	3,132,136	Netherlands	185,281	192,732	225,088
Italy	1,950,679	2,200,516	Denmark	156,801	173,083	210,069
United Kingdom	815,082	904,637	Madagascar	130,905	177,679	184,014
Morocco	472,656	537,353	Germany	108,143	114,165	129,410
Ireland	426,247	491,703	Ireland	108,631	111,532	116,535
Switzerland	336,664	388,652	Iceland	91,220	111,517	114,027
Denmark	363,642	388,181	Brazil	51,468	88,108	106,268
New Zealand	264,237	298,954	Belgium	98,699	99,236	104,675
Israel	194,131	261,496	Cote d'Ivoire	114,369	93,335	96,179
Portugal	235,230	256,567	Morocco	59,748	77,156	84,306
Cote d'Ivoire	235,162	236,275	Chile	61,115	62,664	82,004
Other	2,653,139	3,032,385	Other	1,044,558	1,256,248	1,366,819
World	20,215,316	23,128,870	World	3,154,103	3,632,432	3,996,917

 

For the full USDA article, please click here.