department of international relations– 2003 1 french agriculture

Department of International Relations– 20031

FRENCH AGRICULTURE


Agriculture was in deficit but…

1945:1945:

Agriculture=35% of jobs

Small farms

Very low farm income


…by rolling out a proactive agricultural policy…

Market organisations

Technical support, Training for

farmers

Professional organisation

Structural reorganisation

Aid to equipment investments

Land consolidation


• The Common Market (Treaty of Rome in 1957)

• The European Community’s Agricultural Development Policy.

• Liberalisation process of agricultural trade (WTO accords)…

…and setting up a new economic framework…


…Agriculture has undergone far-reaching changes.

664,000 farms

Average UAA per farm: 42 hectares3.4 % of

employment

20032003::


FRANCE: the main agricultural-producing country of the EU

– Number one agricultural power of the European Union (1/4 of EU production

– Largest agricultural area (33 million hectares including 54% of arable land)

23,6

7,8 7,9

24,4

7,9 8

0

5

10

15

20

25

1990 2000

Animal products

including cattle

including milk

Source INSEE in billion euros

35,1

9,1 8,4

36,9

9,9 9,1

0

5

10

15

20

25

30

35

40

1990 2000

Plant products

including graincropsincluding wine


France’s rank in EU agricultural production

Lu

xe

mb

ou

rg;

0,1

Fin

lan

d;

1,3

Sw

ed

en

; 1

,8

Au

str

ia;

1,9

Po

rtu

ga

l; 2

Ire

lan

d;

2,1

Be

lgiu

m;

2,5

De

nm

ark

; 3

Gre

ec

e;

4

Th

e N

eth

erl

an

ds

; 6

,9

Th

e U

nit

ed

Kin

gd

om

; 8

,9

Sp

ain

; 1

2,2

Ita

ly;

14

,9

Ge

rma

ny

; 1

5,7

Fra

nc

e 2

2,8

0

5

10

15

20

25

In 2000, in percentageIn 2000, in percentage

EU= 280 billion eurosEU= 280 billion euros


02468

1012141618

Sugar Colza &sunflower

Beef

European Union

France

Because of its climate, soils, and Overseas Departments and Territories, FRANCE is the only EU country that can produce practically every agricultural

product

0

50

100

150

200

250

Grain crops

EuropeanUnionFrance

In million of tons

Share of agriculture and agri-food industries in GDP: 4.5%


MAIN AGRI-FOODSTUFF EXPORTS

• France does most of its trading with EU countries (3/4 of exports in value)

• Total exports to EU in 2002: 26.6 billion euros

Beverages, wines, spirits:

6

Beverages, wines, spirits:

8,7

Grain, flour-milling:

5

Grain,

flour-milling: 3,8

Milk, dairy products:

2,8

Milk, dairy

products: 4

Animals, meat:

2,2

Animals, meat:

2,8

Other: 4,2

Other: 6,4

1990

2001

Source: French Customs

In billion euros


Agri-food trade balance in 2002

Fruit, -0,7

Preparations (fruit & vegetables), -1,1

Fish & crustaceans, -1,7

Beverages, wine & spirits, 7,6

Grain & flour-milling, 3,6

Live animals, 1,1

Sugar & confectionary, 0,9

Tobacco, -1,5

Milk & Dairy products, 2,1

SurplusSurplus

DeficitDeficit

In billion euros

Source: Agreste/ Customs


LAND USE

Useful Agricultural

Area

Poplar groves, woods and

forests

Unfarmed land

Non agricultural

land

0

10

20

30

40

50

60

1950 1980 2001

In millions of hectares

Grain, oilseed, high-protein

crops

Fallow land

Fodder crops

Other

0

5

10

15

20

1950 1980 2001

Metropolitan territory Arable land

Source Agreste

7.1

2.8

14.3

29.6

1.2

4.5

1.3

11.4

In millions of hectares


SHARE OF USEFUL AGRICULTURAL AREA WITHIN TOTAL AREA

In 2001, in In 2001, in percentagepercentage

Source AGRESTE


• Number of farms: 664,000 in 2000• Average size: 42 hectares• Farmable area = 54% of the territory

UAA Breakdown (in millions of hectares)

2001

Arable Land62%

Grassland area34%

Vineyards, orchards,

other4%

Total UAA=29.5 mil ha

Family Farms


BREAKDOWN OF LIVESTOCK FARMS

Dairy cowsSuckling cows

Source Agreste


BREAKDOWN OF LIVESTOCK FARMS

Location of poultry farms

Source Agreste

Location of pig farms


THE FOREST AND FOREST PRODUCTION

• More than 1/4 of the national territory (27%)

• 3/4 in private property (10 mil. ha.)

Breakdown of woodlands (millions of hectares) in 2000

9,5

4,1

1,4 Mixedforest

Softwoodforests

Hardwoodforests

Source: AGRESTE.


3 Original Features of the French Forest

• Great richness and ecological diversity– 89 different species, 2/3 hardwood

• Predominant share of private forests– 3.7 million timber owners

• A big tropical forest thanks to the Overseas Departments and Territories– 8 million hectares in French Guiana, 0.4

million hectares in Caledonia, etc.


The French Forest: Multicentennial Sustainable Management

• 1219: First Royal Forestry Order

• 1376: Publication of the first forest management plan for a royal forest

• 1669: Order issued by Colbert: First Forestry Code

• 1827: Nancy School of Forestry

• 1945: Creation of the Fonds Forestier National (National Forestry Fund)


Major Tools for Forestry Policy

• The Forestry Act: • Since 1827, it compiles all the laws and decrees; it is

enhanced and updated by Forestry Policy Laws every 20 years or so

• The ‘forest regulations’• Special mode that is mandatory for public forests (4.6 mil.

ha.) of the French State and of the territorial authorities

• The national forest survey

• Taxation tailored to long-term constraints


Principles for the Sustainable Management of French Forests

• The protective function (the environment) is the basis of management

• The production function wherever compatible with forest protection

• The social function and public-focussed function (amenity)• Protection, production, and amenity functions are carried out at

the same time and place• Forest management determines the priority goals and

maximises the tradable and nontradable goods by preserving the capital


• The turnover of maritime fisheries = 1 billion euros (production = 594,067 tons of fish, crustaceans and molluscs)

• National production = 50% of domestic demand

• Fish trade = 10,000 jobs

• 120 processing companies employ an average of 11 wage-earners– Turnover: 2.4 million euros

The resource is preserved by the ‘total allowable catch’ (TAC)

MARITIME FISHERIES


Nord Pas de Calais16.8 %

Haute Normandie3.9 %

Basse Normandie 10.5 %

Bretagne 42.4 %

Pays de Loire11.6 %

Poitou-Charentes2.4 %

Aquitaine2.5 %

Méditerranée9.9 %

Production per Production per regionregion

MARITIME FISHERIES


7,0%11,0%

80,0%

2,0%

< 12 m12 à 16 m16 à 25 m> 25 m

The French fleet had 5,984 ships in 2001

80 % of the ships are under 12 metres in length

THE FRENCH FLEET


AQUACULTURE

• SHELLFISH FARMING:

– Number one shellfish farming country in Europe– Main farmed shellfish: Portuguese and flat oysters,

mussels– Production = 148,400 tons (1997)– 19,000 jobs including 9,500 fulltime jobs (2000)


• FISH FARMING:

– One the world’s leading producers of farmed trout– 66,500 tons; Turnover: 228 million euros in 1999

– Salmon farming = 635 enterprises, 1,580 jobs, 818 locations; Turnover: 114 million euros

– Sea-cage farming = 41 enterprises; Turnover: 47 million euros (sea bass, sea-bream, and turbot)

– Pond fish farming = 12,000 tons including 50% carp and 25% roach; Turnover: 41 million euros


Imports (2001): 3.4 billion euros including 62% fish. The EU supplied 42% of the importsExports (2001): 1.1 billion euros including 68% fish, 81% were exported to the EU.

In France, the foreign trade of fishing products had a deficit of more than 2 billion euros in 2001

IMPORTS Millions of eurosShrimp 537Salmon 486Tuna 315Cod (haddock) 218Scallop 128

EXPORTS Millions of eurosTuna 287Shrimp 109

FOREIGN TRADE BALANCE Millions of euros

Eel, young eel 30Cuttlefish, squid 22Bass 17Anchovies 14Oysters 12Trout 9

Source: Customs


THE EQUINE SECTOR• 500,000 animals of the equine family (42 breeds of horses, donkeys and

ponies)• Specifically focussed on recreational activities: races and riding• Sector employing 55,000 people• Organisational Framework:

– Haras Nationaux (national stud farms): 1,100 people – Health (300 specialised veterinarians and 990 farriery enterprises,

1,270 jobs)– Saddlery (900 enterprises, 2,500 jobs)– Training and research: 850 jobs– Feed manufacturers: 100 companies producing 150,000 tons of horse

feed per year


ORGANISED MARKETS

• Organisation and regulation of product supply (national inter-professional public bodies)

• The inter-professional organisations draw up the agreements on:– Production rules– The mode of the stakeholders’ financial contribution

to network actions– Collective product advertising– The definition of production zones

Since 1982:


PRODUCERS HAVE THE INITIATIVE IN ORGANISING AGRICULTURE

• Agricultural cooperatives for product marketing– 10 to 15% of the turnover of the agri-food industries

• Producer groups– Help with product marketing– Provide members with technical advice– Foster the improvement of equipment (financial aid)– Supervise 60% of livestock farm production, 50% of fruit and

vegetable production, and 30% of grape and wine production


FARMERS’ SOCIAL AND FINANCIAL ENVIRONMENT

• The Mutualité Sociale Agricole (MSA) – protects 1.9 million wage earners and their dependents and

2.3 million farmers, retired farmers and their families

• Financial establishments:– 4.8 billion euros in loans without interest subsidies– 1.4 billion euros mid- and long-term, State subsidised

interest loans• 2,700 local branches of the Crédit Agricole SA (bank)• Crédit Mutuel• Banques Populaires


EVER-CHANGING MODERN AGRICULTURE

• Special agricultural education and training system (CAPA, BTA, BEPA, etc.)

• Ever increasing applied research programmes• Technical and economic advice for farmers• The development of research:

– In 2002, 800 million euros of public appropriations to research (INRA, CEMAGREF, CIRAD, and others)

• Improvement of farming technology


A NETWORK OF EFFICIENT AGRI-FOOD INDUSTRIES (AFI)

• Turnover of the AFI = 17% of all industry• Turnover of the AFI = 114.6 billion euros including 37.1 in exports• Share of AFI added value in GDP = 2,3%• Agri-food industry = 380,100 jobs

0

5

10

15

20

25

30

Meats SundryFoodstuffs

Dairyproducts

Beverages AnimalFeed

Fruit &vegetables

Grainmilling

Fish Fats & Oils

Export TurnoverTotal Turnover

In billion of euros


A QUALITY POLICY

• Quality and terroir (locally-made) products (quality label policy)

• Products from organic agriculture

• Appellation d’Origine Contrôlée (AOC, registered designation of origin) products


MONITORED AND CONTROLLED PRODUCTS

• The veterinary services:– 1,000 veterinarian-inspectors– 3,000 technicians– 700 administrative employees– Report to the Directorate for Food and Nutrition and draw up

monitoring and control plans – Strict sanitary certification policy

• Creation of the Agence Française de Sécurité Sanitaire des Aliments (AFSSA, the French Food Safety Agency) in 1998

• Controls by the public authorities (fraud control department)


A SUSTAINABLE DEVELOPMENT POLICY

• Changing CAP goals:– Rural development programmes ( maintaining

employment level, land management, and so on)– Environmental concerns

• The Law recognises the economic, social and environmental functions

• Quality, safety and security requirements


PUBLIC SUPPORT TO AGRICULTURAL

100%27,378TOTAL

4.6%1,283General services

42.8%11,716Social protection and solidarity

6.6%1,820Research and education

1.5%421Sustainable forest management

1.8%512Rural area and equestrian sports

0.6%170Agri-food industries

34.5%

7.25%

9,470

1,985

Productive agricultural activities

- including EU funding

- including national funding

%Amount (million euros)

Source: SCEES 2002


Presentation by:

– Ministère de l'agriculture, de l'alimentation, de la pêche et des affaires rurales (French Ministry of Agriculture, Food, Fisheries and Rural Affairs)78 rue de Varenne75349 Paris 07 SPPhone: 01 49 55 49 55www.agriculture.gouv.fr

With the help of:– L’Association pour de Développement des Echanges Internationaux

de Produits et Techniques Agro-alimentaires (ADEPTA) (Association for the Development of the International Trade of Agri-Foodstuff Products and Technologies)41 rue de Bourgogne

75007 ParisPhone: 01 44 18 08 88www.adepta.com

department of international relations– 2003 1 french agriculture

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