Required Report - public distribution

**Date:** 11/10/2005

**GAIN Report Number:** FR5068

FR5068

**France**

**Planting Seeds**

**Annual**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Marie-Cécile Hénard

**Report Highlights:**

France is the largest European producer and the world\'s third leading
exporter of planting seeds. However, France has a seed trade deficit
with the United States. The main product exported by the United States
to France is corn for sowing. The French planting seed industry, which
favors biotechnology, has been affected in the past few years by the
destruction of many biotech test plots by opponents to biotechnology,
and the EU Commission delay of the regulation process to set thresholds
for the adventitious biotech presence in planting seeds. In addition,
French planting seed farmers need to adapt to the reformed CAP measures
in 2006 including fully decoupled direct payments and environmental
restrictions for direct payments.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Paris \[FR1\]

\[FR\]

Table of Contents

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

[Production 3](#production)

[General 3](#general)

[Production Policy 4](#production-policy)

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

[Intellectual Property Rights 5](#intellectual-property-rights)

[Biotechnology 5](#biotechnology)

[Pending EU Regulation on Biotech in Planting Seeds
5](#pending-eu-regulation-on-biotech-in-planting-seeds)

[Open Field Test Plots and Production in 2005
6](#open-field-test-plots-and-production-in-2005)

[Testing for Biotech in Planting Seeds
6](#testing-for-biotech-in-planting-seeds)

[Trade 6](#trade)

# Executive Summary

France is a major producer and exporter of planting seeds but maintains
a trade deficit in planting seeds with the United States. The leading
product exported by the U.S. to France is corn for sowing. The French
planting seed industry, which favors biotechnology, has been affected in
the past few years by the destruction of test plots by opponents to
biotechnology and the EU Commission's failure to set thresholds for the
adventitious presence of biotech in planting seeds. In addition, French
planting seed farmers need to adapt to the reformed CAP, and principally
fully decoupled payments in 2006 and environmental restrictions for
direct payments.

# Production

## 

## General

France is the largest seed producer in the European Union. Its planting
seed sector employs 15,000 people in 300 companies and involves 25,000
producers. According to the French planting seed association (GNIS), the
trends and breakdown of French production of certified seeds is
illustrated in the following graph. Since 1997/98, total production of
planting seeds has been relatively stable at approximately 1.3 million
MT. The leading categories produced by France are wheat and potato
planting seeds. However, production trends are opposite for these
products: while the production wheat for sowing has gradually declined,
the production of potatoes for planting has increased in the past few
years.

![](media/image2.wmf)

Of major interest for U.S. trade are corn seeds and soybean seeds. The
above graph indicates that corn for sowing is a major category of seeds
produced in France and that French production has been very stable in
the past few years. By contrast, French oilseed production is marginal
compared to the other categories of planting seeds produced. The graph
below indicates the breakdown and trends of the French production of
certified oilseeds. French production of certified rapeseed for planting
increased significantly in 2003/04 while soybean and sunflowerseed
production decreased. The increase follows the implementation of French
governmental incentives to produce biodiesel processed from rapeseed.
(For more information, please see FR5046 dated June 30, 2005, and FR5018
dated March 7, 2005)

![](media/image3.wmf)

## Production Policy

In 2006, production policy will be subject to several changes. Pursuant
to the Common Agricultural Policy, direct payments to farmers growing
planting seeds will be decoupled. Farmers with historical references
will receive direct payments but there will be no incentive for new
farmers to start such production. In addition, payments will be subject
to the environmental impact of farm practices (eco-conditionality),
whereby the quantity of chemical products is limited by the European
Phytosanitary Directive. This can penalize French farmers growing
planting seeds especially due to the limitations on the herbicides and
nitrogen inputs.

In addition, French producers of corn planting seeds are subject to the
current suspension of authorization of the seed treatment with two
insecticides (Bayer's Gaucho and BASF's Regent). While it is forbidden
to use these insecticides in France, French corn planting seed producers
favor the production of planting seeds treated with these chemicals to
be exported to countries where these products are still authorized. This
chemical ban on French corn seed exports could penalize French exports.
The French authority examining laws (Conseil d'Etat) is currently
reviewing the issue.

# Seed Certification -- Variety Approval

## 

The French and EU seed registration systems are fully integrated,
therefore, seeds registered in any EU member state are 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:
\"Comite Technique Permanent de la Selection,\" or CTPS) is a technical
committee answering to the French Minister of Agriculture (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 its agronomic and technical values to control
varieties and measure its stability and homogeneity. The Study and
Control Group for Varieties and Seeds (in French: \"Groupe d\'Etudes et
de Controle des Varietes et des Semences,\" or GEVES) conducts these
studies on 100,000 test plots across France. GEVES is comprised 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 its tests, it is listed in the French Official
Seed Catalogue and is thus also 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

## 

In France, the framework protecting new seed varieties is the 1961 UPOV
(Union pour la Protection des Obtentions Vegetales) Convention, which
was strengthened by the 1991 Act (UPOV 1991). 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. The UPOV system is designed to protect the work of
breeders, to accommodate users' needs, and to specifically reserve
rights for further variety development. The production and sale of a
protected variety is subject to the approval of the variety breeder.

The Community Plant Variety Office (CPVO), based in Angers, France, is
the European authority implementing the European system for the
protection of plant variety rights. CPVO works with the French GEVES and
the other seed evaluation groups in EU Member States.
[http://www.cpvo.eu.int](http://www.cpvo.eu.int/)

France put its national law into compliance with Directive 98/44
(regulating intellectual property rights on plant varieties) in the law
2004-1338 of December 8, 2004 available at
<http://www.legifrance.gouv.fr/WAspad/UnTexteDeJorf?numjo=ECOX0100118L>

The French law allows plant breeders making varietal selections to
freely use (copyrighted) plant varieties to create new varieties.

# Biotechnology

## 

## Pending EU Regulation on Biotech in Planting Seeds 

A European regulation setting thresholds for adventitious presence of
biotech planting seeds has been in discussion for several years. The
French planting seed industry believes that the lack of European biotech
regulation is counter to the interests of the European industry and
farmers. In late 2003, the European Scientific Committee proposed the
following thresholds of adventitious presence of biotech in planting
seeds: 0.3% for rapeseed, 0.5% for corn, and 0.7% for soybeans. Organic
farmers favor the lower threshold of 0.1%, which is the biotech
detection limit. The French planting seed industry believes European
Scientific Committee thresholds are too low and that, likewise, the
proposed organic threshold is untenable.

## Open Field Test Plots and Production in 2005

Several biotech test plots in France were destroyed during the summer of
2005. (see FR5054 dated July 28, 2005 and 5045 dated June 22, 2005).
Nevertheless, French farmers planted at least 500 hectares of biotech
corn in 2005. (see FR5060 dated September 13, 2005).

## Testing for Biotech in Planting Seeds

The Fraud Control Office of the French Ministry of Economy, Finance and
Industry (DGCCRF) conducts tests on planting seeds for biotech content.
In 2003/2004, DGCCRF tested 103 samples of rapeseed, corn and soybean
planting seeds taken from seed companies, importers, and distributors
across France. The 103 samples included 82 samples of French origin and
21 samples imported into France (2 from the United States). DGCCRF
detected GM content in 4 samples out of the 103 tested.

The Food Directorate of the French Ministry of Agriculture (DGAL)
conducts GM content tests on plantings seeds as they are imported into
France. In 2003, DGAL tested 238 samples of corn seeds, 38 samples of
tomato seeds, and 6 samples of soybean seeds. The tests showed that for
GM content 20 percent of the corn planting seeds had adventitious
content (all below 0.3 percent, most below 0.1 percent), all the tomato
seeds samples were negative and that two of the six soybean samples were
positive but both below the rate of 0.1 percent.

# Trade

France is the world's third largest exporter of planting seeds with
exports valued at 600 million euros. On the import side, in 2003/2004,
France imported seeds worth 372 million euros. As indicated in the graph
below, both imports and exports have gradually increased in the past few
years.

![](media/image4.wmf){width="4.458333333333333in"
height="3.0416666666666665in"}

The United States is France's second largest supplier of planting seeds
after the Netherlands, as indicated in the graph below.

![](media/image5.wmf)

Although France is a net exporter of total planting seeds, it has a
trade deficit with the United States, particularly in corn, soybean and
sunflower seeds. The graph below indicates that corn seeds are, by far,
the leading category of France's imports of U.S. seeds.

![](media/image6.wmf){width="4.770833333333333in"
height="3.0104166666666665in"}

The U.S. is France's largest supplier of corn seeds. The U.S. market
share for corn seeds remained relatively stable in 2004/05 at 27
percent. In the French market, U.S. corn seeds for sowing principally
compete with Chilean, Hungarian and Austrian products. Total French
imports of corn seeds for planting declined in 2004/05 as a result of
the lower acreage of corn in France planted for production.

![](media/image7.wmf)