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France: Livestock Farmers Drive Organic Growth
Organic farmland continues to increase in France mainly due to high
interest from livestock farmers.
The amount of organic farmland in France increased to 425,000 hectares
in 2001, up 13.5% from 370,000 hectares in 2000. Most of the 1,140
farmers that applied for conversion in 2001 were meat producers. The
total number of organic farmers has reached 10,400 with organic
livestock farmers accounting for roughly 40%
of the total.
There are a large number of organic meat producers in France however the
majority are small-medium sized farms and these are spread across the
country. This makes the supply-side highly fragmented with most
companies operating at a regional level. Suppliers buy organically
reared animals from regional farmers, arrange for the slaughter and
cutting, and then market organic meat products to retailers and
wholesalers in the region. Direct marketing plays an important role with
significant volumes of organic meat products sold via farm shops or
farmers markets.
The large rise in organic livestock farmers has not been matched by an
increase in arable farmers and this has caused many farmers to
experience difficulties in sourcing organic grains and cereals,
especially organic pork and organic poultry producers. Low interest from
arable farmers is to be a factor behind the government target of
reaching 1 million hectares of organic farmland by 2005 likely to not be
met.
Organic Monitor research shows demand for organic meat products is
stabilising in France. The continuing increase in domestic volumes of
organic meat products could result in an oversupply situation as has
happened in the UK. An estimated 20% of
British produced organic beef and organic lamb is to be sold as
conventional meat products in 2002 due to supply
exceeding demand.
Exports may alleviate some excess capacity however consolidation will be
necessary if French organic meat suppliers are to obtain economies of
scale in marketing and distribution. This would allow retailers to lower
the price premium for organic meat products and widen consumer appeal.
Related Reports:
#1301-44 The
French Market for Organic Meat Products
#1201-44 The British Market
for Organic Meat Products
Posted: July 15th 2002
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