""

Required Report - public distribution

**Date:** 11/10/2003

**GAIN Report Number:** FR3062

FR3062

**France**

**Planting Seeds**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Kurt Seifarth

U.S. Embassy

**Prepared by:**

Marie-Cécile Hénard

**Report Highlights:**

France is the largest seed producer in the European Union and the
world\'s third largest exporter of planting seeds after the United
States and the Netherlands. Half of French certified seed production is
straw cereals, principally wheat. In 2003, biotechnology continues to be
a major concern for the French seed industry and seed customer. There is
currently no commercial production of biotech crops in France and
biotech test plots continued to be targeted by activists. France has a
trade deficit in planting seeds with the United States. The largest
category of U.S. seeds exported to France is, by far, corn seeds,
followed by soybean seeds and sunflower seeds. French imports of U.S.
corn seeds have increased significantly in the past few years, despite
the competition with Hungarian, Chilean and domestic corn seeds.

Includes PSD Changes: No

Includes Trade Matrix: Yes

Annual Report

Paris \[FR1\]

\[FR\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Section I: Production, Regulation and Trade
4](#__RefHeading___Toc54664355)

[Production 4](#production)

[Seed Certification -- Variety Approval
5](#seed-certification-variety-approval)

[Intellectual Property Rights (Plant Variety Protection/Plant Patents)
6](#intellectual-property-rights-plant-variety-protectionplant-patents)

[Biotechnology 6](#biotechnology)

[Biotech Seeds Authorized to be Planted in France
6](#biotech-seeds-authorized-to-be-planted-in-france)

[Open Field Test Plots 6](#open-field-test-plots)

[Trade 7](#trade)

[Section II: Statistical Tables 9](#section-ii-statistical-tables)

[Trade Matrices 9](#trade-matrices)

[Total Planting Seeds 9](#total-planting-seeds)

[Corn Seeds 10](#corn-seeds)

[Tariff Table 11](#tariff-table)

# Executive Summary

France is the largest seed producer in the European Union and the
world's third leading exporter of planting seeds after the United States
and the Netherlands. Half of French certified seed production is made of
straw cereals, principally wheat. In 2003, biotechnology continues to be
a major concern for the French seed industry and seed customer. There is
currently no commercial production of biotech crops in France and
biotech test plots continued to be targeted by activists. France has a
trade deficit in planting seeds with the United States. The largest
category of U.S. seeds exported to France is, by far, corn seeds,
followed by soybean seeds and sunflower seeds. French imports of U.S.
corn seeds have increased significantly in the past few years, despite
the competition with Hungarian, Chilean and domestic corn seeds.

[]{#__RefHeading___Toc54664355 .anchor}**Section I: Production,
Regulation and Trade**

## Production

## 

France is the largest seed producer in the European Union.

General seed sales grew throughout the 1980\'s, dropping slightly in the
early 1990\'s due to the 1992 CAP reforms, but recovered in the mid
1990s as higher farm gate prices allowed farmers to buy certified seeds
instead of using on-farm produced seeds.

There are four French seed companies among the world's top 20 seed
companies: Groupe Limagrain (#4, cooperative, Euro 873 million sales),
RAGT Génétiques (#17, private company, Euro 110 million sales), Euralis
Semences (#18, private company, Euro 105 million sales), and Union In
Vivo (#20, cooperative, Euro 90 million).

The two graphs below illustrate the breakdown and trends in French
Production of certified seeds, based on the French planting seed
association (GNIS):

![](media/image2.wmf)

Straw cereals dominate French production, while oilseeds represent a
marginal part of the production of certified planting seeds. Wheat is
the leading species represented, but production of certified seeds of
wheat has gradually declined since 1998/99.

The graph below indicates the breakdown and trends of the French
production of certified oilseeds (according to GNIS). It shows that
domestic production of soybean seeds has developed significantly in the
past two marketing years.

While the area planted to soybeans (80,000 ha) in France is minor
compared to the areas planted to rapeseed (1 million ha) and sunflower
seed (700,000 ha), French production of certified soybean seeds is
larger than that of rapeseed and sunflower seeds. This is a result the
growing concern over biotech seeds in France. A large share of soybeans
grown in France is geared for food and/or organic production.

![](media/image3.wmf)

## Seed Certification -- Variety Approval

The French seed registration system is fully integrated within the EU
seed registration framework. Seeds registered in any of the EU member
states are now also registered in France, and vice versa.

The French seed sector is regulated by three main organizations. The
\"Permanent Technical Committee for Seed Selection\" (in French \"Comité
Technique Permanent de la Sélection,\" or CTPS) is a technical committee
answering to the French MinAg. CTPS is made up of representatives of the
French MinAg, seed producers, traders and end users. CTPS sets the
technical rules for registering seed varieties in the French Seed
Catalogue. Any petitioner registering a new seed variety in the French
Seed Catalogue must submit a detailed file to the CTPS.

To get into the French Seed Catalogue, a new variety has to pass several
tests. These tests compare their agronomical and technical values to
control varieties and measure their stability and homogeneity. The Study
and Control Group for Varieties and Seeds (in French \"Groupe d\'Etudes
et de Controle des Variétés et des Semences,\" or GEVES) conducts these
studies on 100,000 test plots across France. GEVES is made up of
representatives from the French MinAg, the National Institute of
Agricultural Research (INRA), and the French seed industry organization
(in French \"Groupement National Interprofessionnel des Semences,\" or
GNIS). Please see GEVES website for more information:
[http://www.geves.fr]{.underline} (in French)

If a new variety passes the tests, it is listed in the French Official
Seed Catalogue and is registered for the entire EU. Varieties registered
in the European seed catalogue are listed on the GNIS website, which
also contains information in French and in English on seed
certification: [http://www.gnis.fr]{.underline}

Certified seed production is controlled by the \"Service Officiel de
Controle et de Certification\" (SOC), which is the joint responsibility
of GNIS and MinAg. The MinAg establishes the official criteria for
certification. Random tests in the field and at processing plants verify
the sanitary status of the seeds, the germination capacity and the
moisture level. The SOC has the power to levy administrative and
economic penalties, including fines and plant closures.

## Intellectual Property Rights (Plant Variety Protection/Plant Patents) 

In France, the framework protecting new seed varieties is the 1961 UPOV
(Union pour la Protection des Obtentions Végétales) Convention, which
was strengthened by the 1991Act (UPOV 1991). The UPOV system is designed
to protect the work of breeders, takes into account users' needs, and
specifically reserves rights for further variety development. The
production and sale of a protected variety are subject to the approval
of the variety breeder. The 1991 UPOV Convention is still under
discussion. In contrast to the patent process, used in the United
States, these Conventions allow the use of a Plant Variety Protection
(PVP) to develop another variety without having to pay a fee.

## Biotechnology

### Biotech Seeds Authorized to be Planted in France

There are 4 biotech events of transformation present in 15 crop
varieties currently authorized to be cultivated in France under
Directive 90/220:

\- Novartis Bt-176 corn, corn borer resistant,

\- Monsanto MON 810 corn, corn borer and sesamia resistant,

\- AgrEvo (now Aventis) T25 corn, herbicide tolerant,

\- Altadis ITB-1000-0X tobacco, herbicide-tolerant.

The 1998 de facto moratorium stopped any new approvals for cultivation.
Despite the number of biotech crop varieties approved to be produced,
none is grown commercially in France because French farmers fear they
could not sell their biotech harvest. They last planted 2,000 ha of
Novartis Bt-176 corn in 1998 found no market in France and therefore had
to export it to Spain. Since then, French farmers have not tried to
produce a biotech crop commercially. Although most French corn growers
support biotechnology, their customers (the starch and feed industries)
demand non-biotech corn.

### Open Field Test Plots

A number of tests are being conducted on biotech crops in laboratories,
greenhouses and open fields. In 2003, there were 32 new biotech tests
conducted in open fields (a small increase from 2002), including the 14
new authorizations made by the French MinAg in May after its new public
consultation procedure through internet (see report FR3018 dated
4/23/03, and FR3035 dated 7/17/03), and multi-annual authorizations made
in the past years. Most of the biotech crops grown on test plots for
experimentation are corn varieties. Their characteristics are corn borer
resistance, herbicide tolerance (glyphosate and glufosinate), resistance
to water stress, and corn rootworm resistance. Some tests are also
conducted on biotech rapeseed, grass, tobacco, and poplar.

A complete description of these field trials is available on the French
MinAg biotech website at:

[http://www.ogm.agriculture.gouv.fr](http://www.ogm.agriculture.gouv.fr/)

(For more information on this website, see FR3047, dated 9/11/2003)

In summer 2003, anti-biotech activists destroyed about 20 biotech test
plots, all of them in corn varieties (see report FR3052, dated
9/23/2003, for more details). To protest against these, and for being
able to freely to conduct their research work, a large number
(approximately 2000) of French scientists signed a petition that was
sent to the French government.

In 2003, there were 0.60 ha of biotech corn seed multiplication. Over
the past few years, the area planted to biotech corn seeds for
multiplication under contract went down from 2,000 ha in 1998 to 6.3 ha
in 2001 and zero in 2002.

Corn seed multiplication and production was significantly affected by
the heavy drought faced by France during spring and summer 2003. While
the corn seed multiplication area had increased in 2003 from 2002,
yields are estimated to have declined by approximately 20%.

## Trade

France is the world's third leading exporter of planting seeds after the
United States and the Netherlands. In 2001/02, French exports of
planting seeds amounted to 526.82 million Euros. France's leading
exports were corn and sorghum seeds (46 percent) and vegetable/flower
seeds (22 percent). In 2001/02, total French imports of planting seeds
amounted to 318.27 million Euros. The main planting seeds imported by
France were corn and sorghum seeds (29 percent), vegetable and flower
seeds (21 percent), and sugarbeet seeds (18 percent).

France has a trade deficit in planting seeds with the United States. The
largest categories of planting seeds of interest imported by France from
the United States are corn seeds, soybean seeds and sunflower seeds. The
graphs below indicate that the leading category in value and quantity
is, by far, corn seeds. Imports of corn seeds have been significantly
growing in the past three years.

![](media/image4.wmf)

Source: Eurostat

![](media/image5.wmf)

Source: Eurostat

As indicated in the trade matrix, U.S. corn planting seeds compete with
Hungarian and Chilean products on the French market, as well as
domestically-grown seeds. The United States was France's leading
supplier of corn planting seeds in 2002/03, with 36% market share in
value and 34% market in quantity.

The decline in imports from Hungary in MY 02/03 resulted from the low
yields recorded in seed multiplication in the past few years in this
country.

# Section II: Statistical Tables

## Trade Matrices

### Total Planting Seeds

+--------------------+-----------------------+-------------------------+
| Export Trade       |                       |                         |
| Matrix - France    |                       |                         |
|                    |                       |                         |
| Planting Seeds,    |                       |                         |
| Total              |                       |                         |
|                    |                       |                         |
| MY July‑June       |                       |                         |
|                    |                       |                         |
| in million Euros   |                       |                         |
+--------------------+-----------------------+-------------------------+
| Exports for:       | 2000/01               | 2001/02                 |
+--------------------+-----------------------+-------------------------+
| U.S.               | 14.42                 | 12.18                   |
+--------------------+-----------------------+-------------------------+
| Others             |                       |                         |
+--------------------+-----------------------+-------------------------+
| Germany            | 125.08                | 127.2                   |
+--------------------+-----------------------+-------------------------+
| Netherlands        | 64.37                 | 66.99                   |
+--------------------+-----------------------+-------------------------+
| Italy              | 61.04                 | 63.41                   |
+--------------------+-----------------------+-------------------------+
| Spain              | 41.75                 | 46.42                   |
+--------------------+-----------------------+-------------------------+
| Belgium            | 34.43                 | 35.65                   |
+--------------------+-----------------------+-------------------------+
| Total for Others   | 326.67                | 339.67                  |
+--------------------+-----------------------+-------------------------+
| Others not Listed  | 162.32                | 174.97                  |
+--------------------+-----------------------+-------------------------+
| Grand Total        | 503.41                | 526.82                  |
+--------------------+-----------------------+-------------------------+

Sources: GNIS and French Customs

+-------------------+-----------------------+--------------------------+
| Import Trade      |                       |                          |
| Matrix - France   |                       |                          |
|                   |                       |                          |
| Planting Seeds,   |                       |                          |
| Total             |                       |                          |
|                   |                       |                          |
| MY July‑June      |                       |                          |
|                   |                       |                          |
| in million Euros  |                       |                          |
+-------------------+-----------------------+--------------------------+
| Exports for:      | 2000/01               | 2001/02                  |
+-------------------+-----------------------+--------------------------+
| U.S.              | 37.05                 | 38.83                    |
+-------------------+-----------------------+--------------------------+
| Others            |                       |                          |
+-------------------+-----------------------+--------------------------+
| Netherlands       | 81.22                 | 101.86                   |
+-------------------+-----------------------+--------------------------+
| Germany           | 49.01                 | 49.15                    |
+-------------------+-----------------------+--------------------------+
| Hungary           | 13.12                 | 25.99                    |
+-------------------+-----------------------+--------------------------+
| Belgium           | 25.16                 | 22.34                    |
+-------------------+-----------------------+--------------------------+
| Chile             | 16.49                 | 17.27                    |
+-------------------+-----------------------+--------------------------+
| Denmark           | 15.48                 | 13.03                    |
+-------------------+-----------------------+--------------------------+
| Italy             | 8.7                   | 5.81                     |
+-------------------+-----------------------+--------------------------+
| Total for Others  | 209.18                | 235.45                   |
+-------------------+-----------------------+--------------------------+
| Others not Listed | 40.39                 | 43.99                    |
+-------------------+-----------------------+--------------------------+
| Grand Total       | 286.62                | 318.27                   |
+-------------------+-----------------------+--------------------------+

### Corn Seeds

Import Trade matrix in value:

+-------------------+-----------------+---------------+---------------+
| Import Trade      |                 |               |               |
| Matrix - France   |                 |               |               |
|                   |                 |               |               |
| Corn Seeds        |                 |               |               |
| (100510)          |                 |               |               |
|                   |                 |               |               |
| MY July‑June      |                 |               |               |
|                   |                 |               |               |
| in million \$     |                 |               |               |
+-------------------+-----------------+---------------+---------------+
|                   | 2000/01         | 2001/02       | 2002/03       |
+-------------------+-----------------+---------------+---------------+
| U.S.              | 14.17           | 20.86         | 37.31         |
+-------------------+-----------------+---------------+---------------+
| Others            |                 |               |               |
+-------------------+-----------------+---------------+---------------+
| Hungary           | 10.27           | 20.79         | 19.45         |
+-------------------+-----------------+---------------+---------------+
| Chile             | 8.52            | 11.38         | 9.53          |
+-------------------+-----------------+---------------+---------------+
| Germany           | 4.19            | 6.34          | 9.20          |
+-------------------+-----------------+---------------+---------------+
| Spain             | 2.12            | 5.43          | 8.82          |
+-------------------+-----------------+---------------+---------------+
| Netherlands       | 8.88            | 7.90          | 3.74          |
+-------------------+-----------------+---------------+---------------+
| Austria           | 2.29            | 3.64          | 3.53          |
+-------------------+-----------------+---------------+---------------+
| Total of Other    | 36.27           | 55.48         | 54.27         |
+-------------------+-----------------+---------------+---------------+
| Others not Listed | 7.46            | 10.66         | 12.26         |
+-------------------+-----------------+---------------+---------------+
| Grand Total       | 57.90           | 87.00         | 103.84        |
+-------------------+-----------------+---------------+---------------+

Source: Eurostat

Import Trade matrix in quantities:

+-------------------+-----------------+---------------+---------------+
| Import Trade      |                 |               |               |
| Matrix - France   |                 |               |               |
|                   |                 |               |               |
| Corn Seeds        |                 |               |               |
| (100510)          |                 |               |               |
|                   |                 |               |               |
| MY July‑June      |                 |               |               |
|                   |                 |               |               |
| in MT             |                 |               |               |
+-------------------+-----------------+---------------+---------------+
|                   | 2000/01         | 2001/02       | 2002/03       |
+-------------------+-----------------+---------------+---------------+
| U.S.              | 7299            | 9132          | 16075         |
+-------------------+-----------------+---------------+---------------+
| Others            |                 |               |               |
+-------------------+-----------------+---------------+---------------+
| Hungary           | 7890            | 11563         | 9426          |
+-------------------+-----------------+---------------+---------------+
| Chile             | 5417            | 6373          | 4560          |
+-------------------+-----------------+---------------+---------------+
| Germany           | 1890            | 4728          | 4477          |
+-------------------+-----------------+---------------+---------------+
| Spain             | 3979            | 2543          | 3769          |
+-------------------+-----------------+---------------+---------------+
| Netherlands       | 5486            | 6909          | 1712          |
+-------------------+-----------------+---------------+---------------+
| Austria           | 1739            | 1490          | 1076          |
+-------------------+-----------------+---------------+---------------+
| Total of Other    | 26401           | 33606         | 25020         |
+-------------------+-----------------+---------------+---------------+
| Others not Listed | 3201            | 4498          | 6277          |
+-------------------+-----------------+---------------+---------------+
| Grand Total       | 36901           | 47236         | 47372         |
+-------------------+-----------------+---------------+---------------+

## Tariff Table

  ------------------ ----------- ----------------------- -----------------
                     Customs     Planting Seeds          French Tariffs
                     Codes                               (%)

  Chapter 7          07011000    Potato                  4.5

                     07129011    Sweet Corn (Hybrid)     exempted

                     07131010    Peas (Pisum sativum)    exempted

                     07133310    Common Bean             exempted

                     07139010    Other Dry Beans         3.2

  Chapter 10         10019010    Spelt                   12.8

                     10019091    Soft Wheat              95 Euros per MT

                     10030010    Barley                  93 Euros per MT

                     10051011    Double Hybrid Corn      exempted

                     10051013    Three Way Hybrid Corn   exempted

                     10051015    Single Hybrid Corn      exempted

                     10051019    Other Hybrid Corn       exempted

                     10061010    Rice                    7.7

                     10070010    Sorghum                 6.4

  Chapter 12         12010010    Soybean                 exempted

                     12021010    Peanuts                 exempted

                     12040010    Flaxseed                exempted

                     12051010    Rapeseed with low       exempted
                                 content in erucic acid  

                     12060010    Sunflower               exempted

                     12071010    Palm nuts               exempted

                     12072010    Cotton                  exempted

                     12073010    Castor Seed             exempted

                     12074010    Sesame                  exempted

                     12075010    Mustard                 exempted

                     12076010    Carthame                exempted

                     12079110    Garden Poppy            exempted

                     12079920    other oilseeds          exempted
                                 (including hemp)        

                     12091000    Sugarbeet               8.3

                     12092100    Alfalfa                 2.5

                     12092210    Red Clover              exempted

                     12092280    Other Clover            exempted

                     12092311    Meadow Fescue           exempted

                     12092315    Typical red Fescue      exempted

                     12092380    Other fescue            2.5

                     12092400    June Grass              exempted

                     12092510    Italian Ryegrass        exempted

                     12092590    English Ryegrass        exempted

                     12092600    Herd's Grass            exempted

                     12092910    Vetch+Rough Meadow      exempted
                                 Grass+ Orchard's        
                                 Grass+Bent Grass        

                     12092950    Lupines                 2.5

                     12092960    Other Beets             8.3

                     12092980    Other Forage            2.5

                     12093000    Flower Seeds            3

                     12099110    Turnip-Rooted Cabbage   3

                     12099190    Vegetable Seeds         3

                     12099910    Forestry Seeds          exempted

                     12099991    Ornamental Seeds        3

                     12099999    Other                   4
  ------------------ ----------- ----------------------- -----------------