Required Report - public distribution

**Date:** 10/3/2005

**GAIN Report Number:** FR5065

FR5065

**France**

**Fishery Products**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Elizabeth B. Berry

U.S. Embassy

**Prepared by:**

Marie-Cécile Hénard

**Report Highlights:**

France is a major consumer of seafood products and a net importer of
many seafood products. In 2004, the best export opportunities for U.S.
seafood were Alaska pollack fillets, surimi base, salmon, lobster, and
scallops. In 2004, salmon remained French consumers\' preferred fish.
U.S. salmon exports to France in 2004 were favored by the U.S.
dollar/euro exchange rate and a French media campaign against
farm-raised European salmon. The U.S. market share of groundfish fillet
products increased from 7 percent to 9 percent in 2004 and the potential
for continued growth remains positive. The United States was France\'s
largest supplier of live lobster in 2004 ahead of Canadian lobster. The
United States has become a major supplier of scallops to France and this
trend continues in 2005. France is the largest market for surimi in
Europe and the United States is France\'s leading supplier of surimi
base.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Paris \[FR1\]

\[FR\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Situation and Outlook 3](#situation-and-outlook)

[Section I: Total Fishery Product 5](#section-i-total-fishery-product)

[Production 5](#production)

[Consumption 6](#consumption)

[Trade 7](#trade)

[Marketing 8](#marketing)

[Trade Shows 8](#trade-shows)

[U.S. Seafood Cooperators in France
9](#u.s.-seafood-cooperators-in-france)

[Marketing Activities 9](#marketing-activities)

[Section II: Salmon 11](#section-ii-salmon)

[Production 11](#production-1)

[Consumption 11](#consumption-1)

[Trade 13](#trade-1)

[Policy 14](#policy)

[Section III: Groundfish Fillets 15](#section-iii-groundfish-fillets)

[Production 15](#production-2)

[Consumption 16](#consumption-2)

[French Household Consumption: 16](#french-household-consumption)

[HRI Consumption 16](#hri-consumption)

[Trade 16](#trade-2)

[Section IV: Lobster 19](#section-iv-lobster)

[Production 19](#production-3)

[Consumption 20](#consumption-3)

[Trade 20](#trade-3)

[Section V: Scallops 22](#section-v-scallops)

[Production 22](#production-4)

[Consumption 23](#consumption-4)

[Trade 23](#trade-4)

[Section VI: Surimi 25](#section-vi-surimi)

[Production 25](#production-5)

[Consumption 26](#consumption-5)

[Trade 28](#trade-5)

# Executive Summary

France is a major consumer of seafood products and a net importer of
many seafood products. In 2004, the best export opportunities for U.S.
seafood were Alaska pollack fillets, surimi base, salmon, lobster, and
scallops. In 2004, salmon remained French consumers' preferred fish.
U.S. salmon exports to France in 2004 were favored by the U.S.
dollar/euro exchange rate and a French media campaign against
farm-raised European salmon. The U.S. market share of groundfish fillet
products increased from 7 percent to 9 percent in 2004 and the potential
for continued growth remains positive. The United States was France\'s
largest supplier of live lobster in 2004 ahead of Canadian lobster. The
United States has become a major supplier of scallops to France and this
trend continues in 2005. France is the largest market for surimi in
Europe and the United States is France\'s leading supplier of surimi
base.

# Situation and Outlook

France is a major import market for seafood because its domestic
production is significantly lower than demand. In 2004, France's trade
deficit for seafood products was 604,050 MT valued at 2.125 million
euros. This figure is a 14 percent from 2003 in quantity but stable in
value. The United States, with a 4 percent market share was France's
third largest supplier after the European Union and Madagascar.

The primary U.S seafood exports to France in 2004 (by quantity) were
frozen fillets of Alaska Pollack, surimi base, frozen salmon, lobster
and scallops.

![](media/image2.wmf)

The United States has supplied frozen fillets of Alaska Pollack since
2001 in direct competition with China and Russia. In 2004, direct
imports of frozen Alaska pollack from the United States represented 31
percent of the French market. Interestingly, a significant part of
shipments from China (36 market share) consisted of Alaska pollack
caught in the United States, exported to China for cutting, and
re-exported to France. In 2005, with the recent reduction of Total
Authorized Catch (TAC) set by the EU authorities in 2005 for pollack (22
percent decline from 2004), the potential for increased market share for
U.S. Pollack is very positive.

France is the largest European market for surimi base for further
processing. The French market for surimi continued to expand in 2004 but
less rapidly than the previous year's annual expansion of 10 percent on
average. This slowing down in the expansion of the French surimi market
resulted from increased sales by hard discounters. The United States is
France's largest supplier of surimi base, with 65 percent market share
in 2004. U.S. surimi base principally competes in the French market with
Chilean products. In addition, France has imported increasing quantities
of processed surimi products from Lithuania since 2001. That country now
has 66 percent of the French market, due to the development of the
industrial surimi processor, Viciunai.

France is the largest market for salmon in Europe, and with 13 percent
market share, it is the French consumers' favorite finfish specie. In
France, Alaska salmon (8 percent in 2004) competes with Norwegian (42
percent), Scottish (23 percent) and Irish salmon (8 percent). Price and
seasonality of supply are drawbacks of Alaska salmon compared to
farm-raised European salmon. However, the French media campaign against
farm-raised fish benefited imports of U.S. salmon in 2004.

The United States is, by far, France's largest supplier of lobster, and
more specifically live lobster. Canadian lobster is the strongest
competitor to U.S. lobster on the French market, although most of
Canadian products are imported frozen into France. In 2004, the market
share for U.S. products on the French market was 24 percent, ahead of
Canadian lobster (19 percent).

The French market for scallops is growing, and the United States is now
a major supplier to France, with 11 percent market share in 2004. During
the first half of 2005, U.S. scallop imports increased from the same
period in 2004. U.S. products compete principally against products from
Argentina and Chile on the French market.

Acronyms used in this report are the following:

ADISUR: French surimi organization

GIRA Food Service: Food service survey agency

MinAg: French Ministry of Agriculture, Food, Fisheries and Rural Affairs

OFIMER: French seafood board

SECODIP: Consumer survey agency

# Section I: Total Fishery Product

## Production

## 

The most complete data available on French seafood and aquaculture
production from the French Ministry of Agriculture and Fisheries (MinAg)
and the French Seafood board (OFIMER) is for 2003. It includes the
following:

  --------------------------------- ---------- ---------- ---------- ----------
                                    2002                  2003       

                                    Quantity   Value      Quantity   Value
                                    (MT)       (million   (MT)       (million
                                               Euros)                Euros)

  Fresh Wild Catch Sold at Auction  296,774    698        292,862    706
  Markets                                                            

  Fresh Wild Catch not Sold at      97,175     240        94,828     261
  Auction Markets                                                    

  Aquaculture                       250,378    512        246,919    542

  Frozen Wild Catch                 224,411    182        239,788    177

  TOTAL                             868,738    1,632      874,397    1,686
  --------------------------------- ---------- ---------- ---------- ----------

Sources: OFIMER, MinAg

## 

To date, only sales at auction markets are available for 2004. They
included the following:

  ------------- ---------- ---------- --------- ---------- ---------- ---------
                2003                            2004                  

                Quantity   Value      Average   Quantity   Value      Average
                (MT)       (million   Price     (MT)       (million   Price
                           Euros)     (Euro per            Euros)     (Euro per
                                      kg)                             kg)

  Finfish       207,585    517        2.49      187,782    503        2.68

  Crustaceans   10,847     68         6.27      9,771      62         6.37

  Shellfish     32,483     58         1.79      29,106     54         1.86

  Cephalopods   25,726     71         2.76      26,484     72         2,71
  ------------- ---------- ---------- --------- ---------- ---------- ---------

Source: OFIMER

During the first half of 2005, 110,050 MT of seafood, valued at 320
million euros, were sold at French auction markets. This corresponds to
a 10% decline in quantity and 5% decline in value from the first half of
2004.

Canned Fishery Products

## 

France is a major producer of canned fishery products. As indicated in
the following table, the major species canned in France are tuna,
sardines and mackerel.

  -------------- -------------- -------------- -------------- --------------
                 2002                          2003           

                 Raw material   Processed      Raw material   Processed
                 used (whole    Products (net  used (whole    Products (net
                 fish           weight, MT)    fish           weight, MT)
                 equivalent,                   equivalent,    
                 MT)                           MT)            

  Sardines       18,774         9,956          17,417         8,782

  Tuna           39,960         43,005         43,277         46,272

  Mackerel       33,885         21,305         26,584         16,283

  Salmon/Trout   702            223            727            302

  Other (incl.   6,241          9,187          4,187          9,164
  Herring,                                                    
  shellfish and                                               
  other)                                                      

  Total          98,860         83,453         91,465         80,501
  -------------- -------------- -------------- -------------- --------------

Source: FIAC (French Federation for the Canning Industry)

[http://www.adepale.org](http://www.adepale.org/)

## Consumption

## 

According to OFIMER, SECODIP and GIRA, French seafood consumption
totaled 813,334 MT in 2004, comprised of 70 percent household
consumption and 30 percent consumption at hotels, restaurants and
institutions (HRI). The share of the HRI sector has increased
significantly in the past few years. In 2004, it totaled 44 percent of
frozen purchases, 34 percent of fresh purchases, 10 percent of catering
products and 9 percent of purchases of canned products.

![](media/image3.wmf)

## Trade

## 

According to French Customs, France has a trade deficit for fishery
products of 604,050 MT or 2,1 billion euros in 2004, up 14 percent in
quantity and stable in value from 2003. In 2004, the United States was
France's third leading supplier of fishery products, in value, after the
European Union and Madagascar.

![](media/image4.wmf)

The largest categories of seafood products imported by France were the
following in 2004:

![](media/image5.wmf)

## Marketing

### Trade Shows

-   European Seafood Exposition, Brussels

The European Seafood Exposition is the leading seafood show in Europe.
It takes place every year in Brussels, Belgium. The next ESE will take
place on May 9-11, 2006.

Information to participate is located at:
[http://www.euroseafood.com](http://www.euroseafood.com/)

FAS/Paris promotes seafood products in France through trade shows and
marketing activities. The best way for a U.S. company to penetrate the
French market is to participate in trade shows. FAS/Paris recommends the
following trade shows which are USDA-endorsed and where U.S. companies
participating in USDA's Market Access Program (MAP) can be reimbursed up
to 50 percent of their expenses if they join the U.S. Pavilion.

-   SIAL (International Food Show), France

The International Food Show (SIAL) takes place every other year in
Paris, France. It is the EU's leading food show along with Germany's
ANUGA. In 2004, there were 5,300 exhibitors in total and 135,000
visitors from 98 countries at SIAL. Next SIAL will take place on October
22-26, 2006. Information on SIAL is located at:
[http://www.sial.fr](http://www.sial.fr/)

SIAL is a USDA-endorsed show with U.S.A. Pavilions. To be part of the
USA Pavilion at SIAL, please contact:

IMEX Management, Inc.

505 East Boulevard, Suite 200

Charlotte, NC 28203

Tel: 704 365 0041

Fax: 704 365 8426

Email: <sial@imexmgt.com>

Contact: François Gros

-   SIRHA (International Food Service and Gastronomic Trade Exhibition)

SIRHA is a USDA-endorsed show with a U.S.A. Pavilion, held biennially.
SIRHA is the premier international forum for the HRI Food Service
Sector. It is also the international meeting place for Chefs and food
professionals. SIRHA showcases quality food and food ingredient products
as well as foodservice equipment and industry innovation. This show,
closely linked to Chicago\'s National Restaurant Association Trade Show,
is also host to the world famous \"Bocuse d\'Or\" and the World Pastry
Cup culinary competitions.

In 2005, SIRHA had 1,750 exhibitors, including 10 international
pavilions. There were 164,000 visitors from 120 countries and 911
journalists from all over the world. Visitors at SIRHA are
hotel/restaurant managers, caterers, wholesalers, distributors and
importers from supermarkets and the food service and retail sectors.

To participate at SIRHA on January 20-27 2007, please contact:

Maria Nemeth-Ek/Sharon Cook

Trade Show Office

USDA - FAS

1400 Independence Ave., SW - Stop 1052

Room 4939 - South Building

Washington, D.C. 20250-1052

Tel: (202) 720 3623

Fax: (202) 690 4374

Email: <nemeth@usda.gov>

<sharon.cook@usda.gov>

or:

SEPELCOM

Marie-Odile Fondeur

Avenue Louise Bleriot - BP 87

69683 Chassieu Cedex

Tel: (33-4) 72 22 3241

Fax: (33-4) 72 22 3218

Email: <mofondeur@sepelcom.com>

Internet: <http://www.sirha.com/>

### 

### U.S. Seafood Cooperators in France 

ASMI and Food Export USA, representing seafood of the East Coast, is
represented in France by MARKONSULT

58, rue Pottier

78150 Le Chesnay

Tel: (33-1) 39 23 20 07

Fax: (33-1) 39 23 20 17

<NMasson@Alaskaseafood.org>

East Coast Seafood France SARL (U.S. lobster)

Dominique Moreau

1, rue de la Corderie

94586 Rungis Cedex

tel: (33-1) 49 78 92 54

fax: (33-1) 46 86 35 74

[dmoreau@myseafood.com]{.underline}

FAS/Paris and the State Regional Trade Groups (SUSTA, WUSATA,
Food-Export-USA and MIATCO) conduct promotional activities and buyer
missions for seafood products in France. For more information on these
activities, please visit our website or contact FAS/Paris directly. For
additional information on above trade shows and activities, please
contact FAS/Paris at: <agparis@usda.gov>

or visit our website at:
[http://]{.underline}[www.amb-usa.fr/fas/hfas.htm](http://www.amb-usa.fr/fas/hfas.htm)

### Marketing Activities

The upcoming marketing activities organized by FAS/Paris in cooperation
with U.S. Trade Associations and State Regional Trade Groups to promote
seafood products in France are the following:

[US Food Service Promotion \"Flavors of America\"]{.underline} (June
2006): the promotion will entice the French food service trade
(hotels/restaurants and institutions) and media to discover U.S. food
products, including seafood, under the theme of *Flavors of America.*
This is a multi-cooperator project targeting food service trade,
brokers, buyers, importers, distributors, cooking schools and chefs from
leading restaurants, as well as the specialized food press.

[Seafood Initiative Promotion with Auchan Supermarket Stores
(]{.underline}July/September 2006): the promotion will aim to educate
French consumers about U.S. seafood and to increase sales of fresh and
frozen seafood, complementary products, and methods of preparation from
all regions of the United States. The operation will be the \"engine\"
for the promotion through Agence MBI (Auchan special promotions Agency).

[\"Western Regional Cuisine\" A Food and Food Service Promotion with
Casino and Casino Cafeterias]{.underline} (date to be determined):
\"Western Cuisine\" theme menu/dish promotion with Casino cafeterias in
their 230 stores throughout France. The promotion is designed to educate
French consumers about Western Regional cuisine, food and flavors. The
promotion will be coupled with a retail promotion of products that
tie-in to the promotion and will be available for purchase in Casino
supermarkets. A variety of products from the West coast of the United
States will be offered to Casino, including seafood.

# Section II: Salmon

  --------------- --------------------- ----------------- ---------- ----------------- ---------- -----------------
  **PSD Table**                                                                                   

  **Country**     **France**                                                                      

  **Commodity**   **Salmon,                                                            (MT)       
                  Whole/Eviscerated**                                                             

                  2003                  Revised           2004       Estimate          2005       Forecast

                  USDA Official \[Old\] Post              USDA       Post              USDA       Post
                                        Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]
                                                          \[Old\]                      \[Old\]    

  **Market Year                         01/2003                      01/2004                      01/2005
  Begin**                                                                                         

  Beginning       31000                 31000             31000      31000             31000      31000
  Stocks                                                                                          

  Total           10                    9                 0          12                0          12
  Production                                                                                      

  Intra-EC        92400                 45033             0          45185             0          45000
  Imports                                                                                         

  Other Imports   8300                  69820             0          70086             0          70000

  TOTAL Imports   100700                114853            0          115271            0          115000

  TOTAL SUPPLY    131710                145862            31000      146283            31000      146012

  Intra-EC        5500                  10002             0          11441             0          10500
  Exports                                                                                         

  Other Exports   500                   479               0          527               0          500

  TOTAL Exports   6000                  10481             0          11968             0          11000

  Domestic        90710                 100381            0          99315             0          100012
  Consumption                                                                                     

  Other Use/Loss  4000                  4000              0          4000              0          4000

  TOTAL           94710                 104381            0          103315            0          104012
  Utilization                                                                                     

  Ending Stocks   31000                 31000             31000      31000             0          31000

  TOTAL           131710                145862            31000      146283            0          146012
  DISTRIBUTION                                                                                    
  --------------- --------------------- ----------------- ---------- ----------------- ---------- -----------------

Sources: French MinAg, French Customs, OFIMER/SECODIP

## Production

## 

Salmon production remains marginal in France. According to the French
MinAg, domestic salmon production increased from 9 MT valued at 205,000
euros in 2003 to 12 MT valued at 228,000 euros in 2004.

## Consumption

## 

France is the largest European market for salmon, and it is a mature
market for salmon. Salmon is French consumers' preferred specie
comprising 13 percent of finfish consumption in value in 2004.

In 2004, French household consumption of salmon products declined by 20
percent from 2003. This was the result of French consumers reaction to
wide reporting from the French media in early 2004 on farm-raised salmon
presenting a risk of cancer to consumers (see FR4061 for further
information). Interestingly, whole salmon sales declined more (30
percent) than cuts (15 percent). In fact, sales of smoked salmon
increased (6 percent). In French consumers' minds, the image of the
whole fish was hurt, but not that of the food product, especially as a
processed product.

In 2004, OFIMER and SECODIP estimated that French household consumption
of salmon was 41,000 MT, for a value of 565.8 million euros. As
indicated in the graphs below, more half (54 percent), by value, of the
salmon consumed by French households was in the form of smoked salmon.

![](media/image6.wmf)

![](media/image7.wmf)

In the HRI sector, French consumption of salmon was 27,150 MT in 2004,
valued at 207.4 million euros.

![](media/image8.wmf)

![](media/image9.wmf)

## 

## Trade

  ----------------- -------------------- ---------------------- ----------
  **Import Trade                                                
  Matrix**                                                      

  **Country**       France                                      

  **Commodity**     Salmon,                                     
                    Whole/Eviscerated                           

  Time Period       Jan-Dec              Units:                 MT

  Imports for:      2003                                        **2004**

  U.S.              8016                 U.S.                   8877

  Others                                 Others                 

  Norway            50404                Norway                 47982

  UK                29530                UK                     26450

  Ireland           6318                 Ireland                8978

  Denmark           5833                 Denmark                6213

  Chile             4373                 Chile                  5435

  Faroe             3895                 Faroe                  3318

  China             1691                 China                  2258

                                         Sweden                 1186

                                                                 

                                                                 

  Total for Others  102044                                      101820

  Others not Listed 4793                                        4574

  Grand Total       114853                                      115271
  ----------------- -------------------- ---------------------- ----------

Source: French Customs

## 

The above trade matrix reflects that the decline in consumption resulted
in reduced imports of salmon products in 2004. More specifically,
shipments from Norway and the United Kingdom (mainly Scotland) were
negatively affected by the French media campaign against farm-raised
salmon in early 2004.

French consumers seemed to have been reassured by the guarantees of
quality offered by producer groups in countries where salmon is not
farm-raised, including the United States. U.S. exports of salmon to
France consisted of whole pacific salmon (75 percent in 2004), fillets
(22 percent) and Sokeye (3 percent). French imports from the United
States increased in 2004 as a result of the weak dollar relative to the
euro. In the first half of 2005, however, U.S. exports to France lost
market shares to Chilean products. The market share for U.S. salmon in
the French market decreased from 5.3 percent in January-June 2004 to 3.3
percent in January-June 2005.

French imports of salmon from Ireland also increased, as a significant
share of Irish salmon is sold under the French organic (AB) and high
quality (Label Rouge) logos. Finally, shipments of Scottish salmon to
France under the "Label Rouge" quality logo increased from 5,600 MT in
2003 to 6,800 MT in 2004.

## 

## Policy

## 

Due to pressure from the Scottish salmon industry, the European
Commission in 2005 adopted several anti-dumping measures to protect the
EU market against low priced farm-raised Norwegian salmon products.
First, in February, the EU Commission fixed minimum import prices and
tariff quotas. French importers and processors of salmon negatively
reacted to these measures, which would have significantly reduced their
margins. Second, in April, the EU Council of Ministers replaced the
February decision with a 16 percent tariff on Norwegian farm-raised
salmon. Finally, in June 2005, the European Union and Norway reached a
compromise replacing the 16 percent tariff with a minimum import price
reflecting Norwegian production costs.

# Section III: Groundfish Fillets

  --------------- --------------- ----------------- ---------- ----------------- ---------- -----------------
  **PSD Table**                                                                             

  **Country**     **France**                                                                

  **Commodity**   **Groundfish,                                                  (MT)       
                  Fillets**                                                                 

                  2003            Revised           2004       Estimate          2005       Forecast

                  USDA Official   Post              USDA       Post              USDA       Post
                  \[Old\]         Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]
                                                    \[Old\]                      \[Old\]    

  **Market Year                   01/2003                      01/2004                      01/2005
  Begin**                                                                                   

  Beginning       1000            1000              1000       1000              1000       1000
  Stocks                                                                                    

  Total           33000           35800             0          31100             0          32000
  Production                                                                                

  Intra-EC        85000           51229             0          50950             0          0
  Imports                                                                                   

  Other Imports   82000           118832            0          136082            0          0

  TOTAL Imports   167000          170061            0          187032            0          0

  TOTAL SUPPLY    201000          206861            1000       219132            1000       33000

  Intra-EC        12000           12933             0          17389             0          0
  Exports                                                                                   

  Other Exports   1000            959               0          1182              0          0

  TOTAL Exports   13000           13892             0          18571             0          0

  Domestic        186000          190969            0          198561            0          0
  Consumption                                                                               

  Other Use/Loss  1000            1000              0          1000              0          0

  TOTAL           187000          191969            0          199561            0          0
  Utilization                                                                               

  Ending Stocks   1000            1000              1000       1000              0          0

  TOTAL           201000          206861            1000       219132            0          0
  DISTRIBUTION                                                                              
  --------------- --------------- ----------------- ---------- ----------------- ---------- -----------------

Sources: French MinAg, French Customs

## Production

## 

According to the French Ministry of Agriculture, Food, Fisheries and
Rural Affairs, French boats caught the following quantities of
groundfish in 2003 and 2004:

+-----------+-------------+--------------+-------------+-------------+
|           | 2003        |              | 2004        |             |
|           | ~(revised)~ |              | ~(pr        |             |
|           |             |              | eliminary)~ |             |
+-----------+-------------+--------------+-------------+-------------+
|           | Quantities  | Sales Value  | Quantities  | Sales Value |
|           | Produced    | (1,000       | Produced    | (1,000      |
|           |             | Euros)       |             | Euros)      |
|           | (MT)        |              | (MT)        |             |
+-----------+-------------+--------------+-------------+-------------+
| Cod       | 11,049      | 28,421       | 7,395       | 18,231      |
+-----------+-------------+--------------+-------------+-------------+
| Haddock   | 7,879       | 8,629        | 7,450       | 9,377       |
+-----------+-------------+--------------+-------------+-------------+
| Pollack   | 23,536      | 19,110       | 17,855      | 15,039      |
+-----------+-------------+--------------+-------------+-------------+
| Whiting   | 33,795      | 29,995       | 33,135      | 27,960      |
+-----------+-------------+--------------+-------------+-------------+
| Hake      | 13,299      | 48,763       | 12,025      | 47,415      |
+-----------+-------------+--------------+-------------+-------------+
| TOTAL     | 89,558      | 134,918      | 77,860      | 118,022     |
+-----------+-------------+--------------+-------------+-------------+

## Consumption

## 

### French Household Consumption:

Fresh Finfish:

According to SECODIP and OFIMER, French household consumption of fresh
finfish declined by 2 percent in quantity to 127,300 MT in 2004 (a 3
percent decline in value to 1.3 billion euros). In 2004, cod, pollack,
whiting and hake accounted for 12, 6, 6 and 3 percent of French
household consumption of finfish, in value. Cuts and fillets represented
65 percent of the market in volume and 71 percent in value, ahead of
whole finfish. In 2004, supermarket sales accounted for 74 percent of
total sales in quantity (up from 72 percent in 2003) and 70 percent in
value (up from 68 percent).

Frozen Finfish:

In 2004, French household consumption of frozen finfish included 40,873
MT (up 5 percent) of finfish cuts, 22,754 MT (up 2 percent) of breaded
finfish, and 2,383 MT of whole finfish (down 14 percent). Purchases of
Alaska Pollack increased significantly (13 percent), and purchases of
hake increased to a lower extent (2 percent), while sales of cod
declined by 6 percent.

### HRI Consumption

According to GIRA Foodservice and SECODIP, French groundfish consumption
in the HRI sector in 2004 included the following:

-   38,047 MT (192.8 million euros) of frozen white fish,

-   14,145 MT (52.9 million euros) of frozen breaded fish,

-   7,131 MT (49.4 million euros) of frozen groundfish cuts,

-   6,223 MT (57.2 million euros) of whole fresh groundfish,

-   2,946 MT (20.8 million euros) of whole frozen groundfish,

-   560 MT (3 million euros) of fresh breaded groundfish,

## Trade

## 

In 2004, the decline in domestic production of groundfish fillets
resulted in higher imports (10 percent increase). The market share of
U.S. products increased from 7 percent in 2003 to 9 percent in 2004 on
the French market for groundfish fillets.

  ------------------- --------------------- ----------------- ------------
  **Import Trade                                              
  Matrix**                                                    

  **Country**         France                                  

  **Commodity**       Groundfish, Fillets                     

  Time Period         Jan-Dec               Units:            MT

  Imports for:        2003                                    **2004**

  U.S.                12018                 U.S.              16745

  Others                                    Others            

  China               19956                 China             21859

  Iceland             13137                 Norway            16940

  Germany             11584                 Iceland           13391

  Norway              11467                 Germany           11437

  Russia              9975                  Chile             9766

  Chile               9417                  Faroe Islands     9244

  UK                  8806                  Netherlands       8783

  Denmark             8100                  UK                8100

  New Zealand         6686                  Denmark           7706

  Spain               6275                  Argentina         7433

  Total for Others    105403                                  114659

  Others not Listed   52640                                   55628

  Grand Total         170061                                  187032
  ------------------- --------------------- ----------------- ------------

Source: French Customs

The bulk (98 percent in 2004) of groundfish fillets exported by the
United States to France consist of frozen Alaska pollack. As illustrated
in the graph below, the United States has been a major supplier of
frozen fillets of Alaska pollack to France in 2001 and has improved its
market share to 31 percent in 2004 despite competition from China and
Russia. A significant part of Chinese pollack exports to France consists
of Alaskan origin products exported to China for processing then and
re-exported to France.

![](media/image10.wmf)

In 2005, with the recent reduction of Total Authorized Catch (TAC) set
by the EU authorities in 2005 for pollack (22 percent decline from
2004), the potential for increased market share for U.S. pollack is very
positive.

During the first half of 2005, U.S. exports of Alaska Pollack to France
increased by 6 percent to 6,630 MT and Chinese imports fell by 16
percent to 6,890 MT. With total French imports of Alaska pollack fillets
declining to 18,311 MT, U.S. market share is at 36 percent in the first
half of 2005.

# Section IV: Lobster

  --------------- ------------- ----------------- ---------- ----------------- ---------- -----------------
  **PSD Table**                                                                           

  **Country**     **France**                                                              

  **Commodity**   **Lobster**                                                  (MT)       

                  2003          Revised           2004       Estimate          2005       Forecast

                  USDA Official Post              USDA       Post              USDA       Post
                  \[Old\]       Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]
                                                  \[Old\]                      \[Old\]    

  **Market Year                 01/2003                      01/2004                      01/2005
  Begin**                                                                                 

  Beginning       100           100               100        100               0          100
  Stocks                                                                                  

  Total           405           391               0          327               0          350
  Production                                                                              

  Intra-EC        2900          1785              0          1966              0          1900
  Imports                                                                                 

  Other Imports   5900          6620              0          6386              0          6500

  TOTAL Imports   8800          8405              0          8352              0          8400

  TOTAL SUPPLY    9305          8896              100        8779              0          8850

  Intra-EC        1100          531               0          612               0          600
  Exports                                                                                 

  Other Exports   330           338               0          320               0          330

  TOTAL Exports   1430          869               0          932               0          930

  Domestic        7775          7927              0          7747              0          7820
  Consumption                                                                             

  Other Use/Loss  0             0                 0          0                 0          0

  TOTAL           7775          7927              0          7747              0          7820
  Utilization                                                                             

  Ending Stocks   100           100               0          100               0          100

  TOTAL           9305          8896              0          8779              0          8850
  DISTRIBUTION                                                                            
  --------------- ------------- ----------------- ---------- ----------------- ---------- -----------------

Sources: French MinAg, French Customs

## Production

## 

According to the French MinAg, French production of lobster was the
following in 2003 and 2004:

+-----------+-------------+--------------+-------------+-------------+
|           | 2003        |              | 2004        |             |
|           | ~(revised)~ |              | ~(pr        |             |
|           |             |              | eliminary)~ |             |
+-----------+-------------+--------------+-------------+-------------+
|           | Quantities  | Sales Value  | Quantities  | Sales Value |
|           | Produced    | (1,000       | Produced    | (1,000      |
|           |             | Euros)       |             | Euros)      |
|           | (MT)        |              | (MT)        |             |
+-----------+-------------+--------------+-------------+-------------+
| Lobster   | 319         | 6481         | 290         | 5670        |
+-----------+-------------+--------------+-------------+-------------+
| Rock      | 72          | 2656         | 37          | 1439        |
| Lobster   |             |              |             |             |
+-----------+-------------+--------------+-------------+-------------+
| TOTAL     | 391         | 9137         | 327         | 7106        |
+-----------+-------------+--------------+-------------+-------------+

## 

## Consumption

## 

Lobster is mainly consumed in the food service sector in France, as it
is a luxury product not often prepared at home. It is principally
consumed in December during the holiday season. Canadian lobster and
American lobster compete on the French market. U.S. lobster is mainly
imported fresh, while Canadian lobster is principally imported frozen.
In 2004, French household consumption of fresh lobster and rock lobster
declined by 9 percent to 1,218 MT, for a value of 30 million euros. This
principally resulted from the significant increase (18 percent) in
shrimp consumption: although less festive, shrimps are significantly
less costly to French households.

## Trade

## 

The United States is France's largest supplier of lobster.

  ---------------------- -------------- ------------------- --------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**            France                             

  **Commodity**          Lobster                            

  Time Period            Jan-Dec        Units:              MT

  Imports for:           2003                               **2004**

  U.S.                   1779           U.S.                2029

  Others                                Others              

  Canada                 1841           Canada              1549

  Bahamas                1031           Bahamas             1023

  UK                     720            UK                  814

  Cuba                   695            Cuba                582

  Spain                  506            Spain               575

  Ireland                361            Ireland             323

  Total for Others       5154                               4866

  Others not Listed      1472                               1457

  Grand Total            8405                               8352
  ---------------------- -------------- ------------------- --------------

Source: French Customs

Most of U.S. shipments consist of live lobster (86 percent in 2004). The
remainder is frozen rock lobster (crawfish). The graph below indicates
that French imports of live lobster have been very stable since 1999,
with the United States as the number one supplier, competing mainly with
products from the UK, Canada and Ireland.

![](media/image11.wmf)

Source: French Customs

The graph below indicates that crawfish represents a large segment of
French lobster imports, with the Bahamas, Cuba and Spain as the largest
suppliers to France.

![](media/image12.wmf)

Less that 30 percent of annual imports of lobster and crawfish are
undertaken during the first half of the year, due to the seasonality of
consumption of these products in France. During the first half of 2005,
total French imports of lobster and crawfish increased by almost 9
percent to 2,620 MT and imports from the United States increased by 6
percent to 648 MT. Most of this increase resulted from higher shipments
of crawfish.

## 

# Section V: Scallops

  --------------- -------------- ----------------- ---------- ----------------- ---------- -----------------
  **PSD Table**                                                                            

  **Country**     **France**                                                               

  **Commodity**   **Scallops**                                                  (MT)       

                  2003           Revised           2004       Estimate          2005       Forecast

                  USDA Official  Post              USDA       Post              USDA       Post
                  \[Old\]        Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]
                                                   \[Old\]                      \[Old\]    

  **Market Year                  01/2003                      01/2004                      01/2005
  Begin**                                                                                  

  Beginning       1500           1500              1500       1500              0          1500
  Stocks                                                                                   

  Total           2300           2790              0          3430              0          3000
  Production                                                                               

  Intra-EC        9200           5662              0          5514              0          5500
  Imports                                                                                  

  Other Imports   8200           13695             0          16460             0          17000

  TOTAL Imports   17400          19357             0          21974             0          22500

  TOTAL SUPPLY    21200          23647             1500       26904             0          27000

  Intra-EC        4500           5404              0          4518              0          4500
  Exports                                                                                  

  Other Exports   150            49                0          55                0          50

  TOTAL Exports   4650           5453              0          4573              0          4550

  Domestic        15040          16694             0          20831             0          20950
  Consumption                                                                              

  Other Use/Loss  10             0                 0          0                 0          0

  TOTAL           15050          16694             0          20831             0          20950
  Utilization                                                                              

  Ending Stocks   1500           1500              0          1500              0          1500

  TOTAL           21200          23647             0          26904             0          27000
  DISTRIBUTION                                                                             
  --------------- -------------- ----------------- ---------- ----------------- ---------- -----------------

Sources: French Customs, French MinAg

## Production

## 

According to the MinAg, French production of scallops increased by 23
percent to 23,337 MT in 2004, in-shell. This resulted from the higher
availability of scallops in the zones of catch, i.e., Normandy and
Brittany waters. French scallop production was the following in 2003 and
2004:

+------------+------------+--------------+------------+--------------+
| Scallops   | 2003       |              | 2004       |              |
+------------+------------+--------------+------------+--------------+
|            | Quantities | Sales Value  | Quantities | Sales Value  |
|            | Produced   | (1,000       | Produced   | (1,000       |
|            |            | Euros)       |            | Euros)       |
|            | (MT)       |              | (MT)       |              |
+------------+------------+--------------+------------+--------------+
| in-shell   | 18,992     | 52,154       | 23,337     | 54,832       |
| scallops   |            |              |            |              |
+------------+------------+--------------+------------+--------------+
| shelled    | 2,793      |              | 3,432      |              |
| equivalent |            |              |            |              |
+------------+------------+--------------+------------+--------------+

Note: the conversion factor used to convert in-shell scallop production
into shelled scallop production is 6.8. The shelled-equivalent
production data was used in the PS&D table, so that all data in the PS&D
table are on shelled basis.

French scallop prices were negatively affected by the discovery of
Amnesic Shellfish Poison (ASP) in the waters of Normandy during the
fishing season (winter 2004/05). Consequently, scallop catch was
forbidden by French authorities in the infected areas.

## Consumption

## 

France is the largest market for scallops in Europe. Although scallops
are traditionally a festive product principally consumed in December,
the increasing availability of frozen products on the French market
makes scallop consumption more regular throughout the year. The market
is segmented into small grade outlets, grade products for processing,
frozen products with or without roe for food service, the retail sector
(mainly supermarkets and freezer centers), and fresh products for
restaurants and vendors at open street markets or specialized seafood
shops.

In 2004, French consumption of scallops included the following:

-   Household consumption: 5,693 MT of in-shell products (2 percent more
    than in 2003) for a value of 41 million euros, and 1,762 MT shelled
    scallops products (22 percent increase) for a value of 34 million
    euros;

-   HRI consumption: 1,443 MT of fresh products, for a value of 21.6
    million euros, and 1,338 MT of frozen products, for a value of 19.3
    million euros.

## Trade

France is a net importer of scallops, as domestic production is
significantly lower than consumption. Most U.S. scallops shipped to
France consist of frozen products (86 percent in 2004), but the share of
fresh/chilled scallops has been growing in the past few years.

  ---------------------- -------------- ------------------- --------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**            France                             

  **Commodity**          Scallops                           

  Time Period            Jan-Dec        Units:              MT

  Imports for:           2003                               **2004**

  U.S.                   1956           U.S.                2774

  Others                                Others              

  UK                     4308           UK                  4378

  Argentina              3008           Chile               3987

  Canada                 2512           Argentina           3683

  Chile                  2412           Canada              2163

  Peru                   1141           Peru                1596

  Total for Others       13381                              15807

  Others not Listed      4070                               3393

  Grand Total            19407                              21974
  ---------------------- -------------- ------------------- --------------

Source: French Customs

As indicated in the graph below, French imports of frozen scallops have
gradually increased in the past few years, as has the market share for
U.S. products (from 6 percent in 1999 to 13 percent in 2004).

![](media/image13.wmf)

U.S. scallops compete with Peruvian, Chilean, Argentine and Canadian
products on the French market.

During the first half of 2005, U.S. exports of scallops to France jumped
to 1,740 MT from 730 MT during the same period in 2004. At the same
time, shipments from Peru also jumped to similar levels. Increased
imports from the United States and Peru offset the decline in shipments
from Chile and Argentina. Also, total French imports of scallops
increased by 11 percent to 11,800 MT. This increase is due to reduced
domestic production and increased consumption.

##  

## 

# Section VI: Surimi

  --------------- ------------ ----------------- ---------- ----------------- ---------- -----------------
  **PSD Table**                                                                          

  **Country**     **France**                                                             

  **Commodity**   **Surimi**                                                  (MT)       

                  2003         Revised           2004       Estimate          2005       Forecast

                  USDA         Post              USDA       Post              USDA       Post
                  Official     Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]
                  \[Old\]                        \[Old\]                      \[Old\]    

  **Market Year                01/2003                      01/2004                      01/2005
  Begin**                                                                                

  Beginning       0            0                 0          0                 0          0
  Stocks                                                                                 

  Total           0            2500              0          2500              0          2500
  Production                                                                             

  Intra-EC        0            141               0          175               0          180
  Imports                                                                                

  Other Imports   0            14889             0          18030             0          20000

  TOTAL Imports   0            15030             0          18205             0          20180

  TOTAL SUPPLY    0            17530             0          20705             0          22680

  Intra-EC        0            236               0          537               0          550
  Exports                                                                                

  Other Exports   0            4                 0          48                0          50

  TOTAL Exports   0            240               0          585               0          600

  Domestic        0            0                 0          0                 0          0
  Consumption                                                                            

  Other Use/Loss  0            17290             0          20120             0          22080

  TOTAL           0            17290             0          20120             0          22080
  Utilization                                                                            

  Ending Stocks   0            0                 0          0                 0          0

  TOTAL           0            17530             0          20705             0          22680
  DISTRIBUTION                                                                           
  --------------- ------------ ----------------- ---------- ----------------- ---------- -----------------

Source: French Customs

## Production

## 

French surimi base production is limited to one company, Comapeche,
based in Brittany. The annual production capacity is 2,500 to 3,000 MT
of surimi base, processed from blue whiting. The processing subsidiary
of Comapeche, Comaboko, has an annual processing capacity of 10,000 MT
of processed surimi products, prepared with domestically-produced surimi
base and imported Alaska pollack. A large share of Comaboko products is
sold fresh under supermarket brands and a minor share is sold frozen to
freezer centers.

In 2004, French production of processed surimi products continued to
increase to 38,900 MT (a 3 percent increase from 2003), triggered by
rising consumption, which reached 47,100 MT (7 percent increase).

![](media/image14.wmf)

Source: Association for the Development of the Surimi Industry (ADISUR)

## Consumption

## 

In 2004, French surimi consumption included 30,747 MT for French
households (valued at 215 million euros), and 2,186 MT for HRI
consumption. According to GIRA Foodservice and OFIMER, HRI consumption
of surimi included 1,280 MT chilled surimi (9.9 million euros) and 906
MT frozen surimi (5 million euros).

French surimi consumption, by volume, continued to grow in 2004 but at a
slower pace than in previous years. The value of surimi sales declined
in 2004. In 2004, supermarket sales of surimi increased by 4 percent in
volume but declined by 3 percent in value in 2004 (see graphs below).

![](media/image15.wmf)

Sources: OFIMER/Nielsen

![](media/image16.wmf)

Sources: OFIMER/Nielsen

This resulted from the increased market share of hard discounters and
supermarket brands at the expense of branded products. In 2004,
supermarket brands increased their market share to 59 percent (8 percent
higher than in 2003).

The graphs below illustrate the large market share of low priced surimi
products on the French market. This market share for generic products is
stronger in quantity than in volume. A significant part of generic
products is sold at hard discounters.

![](media/image17.wmf)![](media/image18.wmf)

In 2004, surimi processors continued to create in new packaging and
seasonings for surimi products.

## Trade

## 

France is a net importer of surimi products, including mainly surimi
base (66 percent in 2004) to be processed in France and processed surimi
products (33 percent) for direct consumption.

  ---------------------- -------------- ------------------- --------------
  **Import Trade                                            
  Matrix**                                                  

  **Country**            France                             

  **Commodity**          Surimi                             

  Time Period            Jan-Dec        Units:              MT

  Imports for:           2003                               **2004**

  U.S.                   9237           U.S.                11914

  Others                                Others              

  Lithuania              5001           Lithuania           6153

  Chile                  4505           Chile               4508

  Thailand               1498           Thailand            2068

                                                             

  Total for Others       11004                              12729

  Others not Listed      2552                               2939

  Grand Total            22793                              27582
  ---------------------- -------------- ------------------- --------------

Source: French Customs

French imports of surimi were broken down as follows in CY 2003 and CY
2004:

+-------------------+-------+-------+-------+-------+-------+-------+
| French Imports of | S     |       | Pre   |       | Total |       |
| Surimi            | urimi |       | pared |       |       |       |
|                   | Base  |       | S     |       |       |       |
|                   |       |       | urimi |       |       |       |
|                   | 030   |       |       |       |       |       |
|                   | 49005 |       | 160   |       |       |       |
|                   |       |       | 42005 |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | CY    | CY    | CY    | CY    | CY    | CY    |
|                   | 2003  | 2004  | 2003  | 2004  | 2003  | 2004  |
+-------------------+-------+-------+-------+-------+-------+-------+
| United States     | 9,237 | 11914 | 0     | 0     | 9,237 | 1     |
|                   |       |       |       |       |       | 1,914 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Lithuania         | 0     | 0     | 5,001 | 6,153 | 5,001 | 6,153 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Chile             | 4,505 | 4,508 | 0     | 0     | 4,505 | 4,508 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Thailand          | 398   | 495   | 1,100 | 1,573 | 1,498 | 2,068 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Faroe Islands     | 173   | 882   | 0     | 0     | 173   | 882   |
+-------------------+-------+-------+-------+-------+-------+-------+
| China             | 46    | 1     | 224   | 678   | 270   | 679   |
+-------------------+-------+-------+-------+-------+-------+-------+
| Belgium           | 12    | 22    | 214   | 376   | 227   | 398   |
+-------------------+-------+-------+-------+-------+-------+-------+
| Argentina         | 434   | 227   | 0     | 0     | 434   | 227   |
+-------------------+-------+-------+-------+-------+-------+-------+
| South Korea       | 6     |       | 948   | 217   | 954   | 220   |
+-------------------+-------+-------+-------+-------+-------+-------+
| Others            | 219   | 156   | 276   | 380   | 494   | 533   |
+-------------------+-------+-------+-------+-------+-------+-------+
| Total             | 1     | 1     | 7,763 | 9,377 | 2     | 2     |
|                   | 5,030 | 8,205 |       |       | 2,793 | 7,582 |
+-------------------+-------+-------+-------+-------+-------+-------+

Source: French Customs

The United States, with 65 percent of the market in 2004, is France's
leading supplier of surimi base. Over the past few years, the United
States has strengthened its leading position in the French market
despite the growing competition from Chilean products.

![](media/image19.wmf)

In 2004, Lithuania was France's largest supplier of processed surimi
products. As indicated in the graph below, Lithuania's market share has
increased sharply from zero in 2000 to 66 percent in 2004. This
tremendous development resulted from the rapidly growing imports from
the Lithuanian company Viciunai, which exports most of its production to
European countries. France is the leading export market for Viciunai
surimi products.

In 2004, Viciunai's market share was 15 percent in France. These
products are sold principally under supermarket brands and generic
products. However, a minor but growing part is sold under the brand name
Vici at major French supermarkets including Auchan, Leclerc and
Carrefour.

![](media/image20.wmf)

During the first half of 2005, French imports of surimi base increased
by 15 percent to 10,360 MT. This increase benefited mainly Chilean
products while shipments from the United States stagnated at 5,700 MT.
During the same period, French imports of prepared surimi products
increased by 14 percent to 8,080 MT as a resultof increased shipments
from Lithuania and China.