Voluntary Report - public distribution

**Date:** 10/27/2005

**GAIN Report Number:** FR5080

FR5080

**France**

**Poultry and Products**

**A Brief Overview of the French Poultry Sector**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Xavier Audran

**Report Highlights:**

France is the largest poultry producer in Europe, with close to 13
percent of the EU chicken production, and 31 percent of the turkey
production. But for the past five years, French poultry production has
been steadily decreasing, driven by sluggish exports and stable domestic
consumption. France is the fourth largest poultry exporter in the world
(after the United States, China and Brazil). However, French exports of
poultry meat to the EU and to third countries have fallen steadily for
the past five years due to increased competition from other EU producers
and new exporters such as Brazil. Overall, with domestic and export
sales totaling 8 billion euros, the poultry industry accounts for 6
percent of the French food industry sales.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Paris \[FR1\]

\[FR\]

*Note to readers: In light of the Avian Influenza threat, the intent of
this report is to give the reader a brief overview of the French poultry
sector and its economic weight. More reports will be published soon to
discuss the impact of a potential Avian Influenza outbreak in related
sectors such as the grain and oilseed sectors. Check the USDA / Foreign
Agricultural Service website:
[www.fas.usda.gov](http://www.fas.usda.gov/) for more updates. For an
overview of the European Union poultry sector, see GAIN report EU35142
dated 7/15/2005.*

# Production

France is the largest poultry producer in Europe, with close to 13
percent of the EU chicken production, and 31 percent of the turkey
production. In 2004, the French commercial poultry flock exceeded 260
million head, with a more diverse population than any other European
country, including significant duck, guinea fowl and quail flocks. The
duck flock is split evenly between ducks raised only for their meat, and
ducks raised for fattening to produce "foie gras." More than 14,000
specialized farmers produce the bulk of the poultry, which is
concentrated in the western part of France (Brittany and Pays de Loire
regions account for 66 percent of the production), while the southwest
regions are more specialized in duck and "foie gras" production.

French bird flocks at the end of the year :

  ----------------------- ----------------------- -----------------------
  Birds ('000 heads)      2003                    2004

  *Hens*                  *54,600*                *51,782*

  *Chickens (- 16 weeks)* *123,601*               *120,429*

  **Total Gallus**        **197,168**             **189,998**

  Total Ducks             22,870                  22,406

  Turkeys                 33,648                  30,820

  Geese                   785                     689

  Guinea fowl             10,606                  10,020

  Quails                  8,328                   6,494

  Pigeons                 1,795                   1,388
  ----------------------- ----------------------- -----------------------

*(Source French Ministry of Agriculture).*

French poultry production per year (in '000 MT)

  ----------------- ----------------- ----------------- -----------------
                    2002              2003              2004

  **All Poultry**   **2140**          **2016**          1992

  Chicken           1044              1005              996

  Turkey            697               631               619

  Ducks             252               239               238

  Guinea fowl       47                44                42

  Others            100               97                96
  ----------------- ----------------- ----------------- -----------------

*(Source OFIVAL)*

For the past five years, French poultry production has been steadily
decreasing, driven by sluggish exports and stable domestic consumption.
A significant share of the market (26 percent for chicken, 47 percent
for guinea fowl) is poultry raised under official signs of quality such
as "organic", "certified" or "red label". The "red-label" chicken
(chicken aged over 81 days, raised outdoor and fed with vegetable feed
and minerals) accounts for 16 percent of the chicken production (160,000
MT annually). The largest share of the production is sold as
ready-to-cook whole birds.

"Foie Gras" production reached 16,400 MT in 2004, 97 percent of it made
from duck liver. After several decades of growth, the production has now
reached a peak and will only change marginally.

The French egg production of almost 1 million MT in-shell egg equivalent
has remained stable over the years.

# Consumption

Poultry meat consumption amounts to 26 percent of all meat consumed in
France. Consumption of poultry meat was estimated in 2004 at 23.4 kg per
inhabitant per year, stable over the previous years, including 11.8 kg
for chicken, 6.2 kg for turkey, 3.2 kg for duck and 0.6 kg for guinea
fowl. According to various consumers' studies, sales of whole birds are
declining while sales of cuts and processed products such as nuggets and
poultry sausages are increasing sharply.

Egg consumption is estimated at 15.6 kg per inhabitant per year or 255
eggs per inhabitant per year. While egg consumption has shown slight
growth over the past years, consumption of whole eggs decreased by about
1 percent annually and consumption of egg products in processed food and
catering grew 4 percent annually.

# Trade

France is the fourth largest exporter of poultry meat and products in
the world (after the United States, China and Brazil). In 2004, France
exported 1 billion euros of poultry meat and products and imported 403
million euros worth of poultry. France's major European markets are
United Kingdom, Germany, Spain and Belgium. Major third country markets
are Saudi Arabia, United Arab Emirates and Russia. However, French
exports of poultry meat to the EU and to third countries has declined
steadily for the past five years due to increased competition from other
EU producers and from new exporters such as Brazil. At the same time,
French imports have grown steadily due to lower EU trade barriers and
increased competitiveness from Brazil.

French Imports and exports of poultry products in 2004 (in '1000 MT)

  --------------- -------- ----------- ----------- --------- ----------- ----------
                  From the From third  **Total     To the EU To third    **Total
                  EU       countries   Imports**             countries   Export**

  Chicken         177      23          **200**     131       263         **395**

  Turkey          20       7           **27**      161       103         **265**

  Ducks           4        8           **12**      44        10          **54**

  Guinea fowl     0.1                  **0**       2         0           **2**
  --------------- -------- ----------- ----------- --------- ----------- ----------

*(Source OFIVAL)*

In 2004, France also exported 4,200 MT of "foie gras" and "foie gras"
products, worth 87 million euros, and imported 2,900 MT, mainly from
Hungary and Bulgaria.

France has a net trade deficit in eggs: it imported 131,000 MT in-shell
egg equivalent in 2004 but only exported 116,000 MT in-shell egg
equivalent. However, since France exports more value-added egg products,
in value, it exports more than it imports. Most of French imports of
eggs and egg products come from the EU while about 20 to 25 percent of
French exports go to third countries.

# Industry

The slaughtering and processing industry includes 170 companies
employing more than 32,000 workers. However, the four largest companies
(LDC, DOUX, GASTRONOME and ARRIVE) account for 56 percent of the
sector's sales. Domestic sales of poultry meat and products to
households amounted in 2004 to 5.2 billion euros, sales to restaurants
and the catering sector amounted to 1 billion euros and sales to the
processing industry amounted to 1.4 billion euros. Overall, the French
poultry industry accounts for 6 percent of food industry sales.