Required Report - public distribution

**Date:** 1/2/2005

**GAIN Report Number:** FR5010

FR5010

**France**

**Dried Fruit**

**Annual**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Marie-Cécile Hénard

**Report Highlights:**

France is the largest producer and exporter of prunes in Europe. As a
result of two abnormally large crops in 2001 and 2003, beginning stocks
in MY 2004/05 were as high as production: 44,000 MT each. France and the
United States compete on European markets (mainly the UK, Germany,
Greece, the Netherlands and Italy). However, the two leading export
markets for French prunes in MY 2003/04 were Algeria (16 percent market
share) and Russia (11 percent). Since 2002, prunes harvested under
certain standards have benefited from a Protected Geographical
Indication (PGI) with a European logo and \"pruneaux d\'Agen\" brand
name.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Paris \[FR1\]

\[FR\]

Table of Contents

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

[Section I: Situation and Outlook 3](#section-i-situation-and-outlook)

[Section II: Statistical Tables 4](#section-ii-statistical-tables)

[Section III: Supply, Demand, Policy and Marketing
6](#section-iii-supply-demand-policy-and-marketing)

[Production 6](#production)

[Consumption 6](#consumption)

[Trade 7](#trade)

[Marketing 7](#marketing)

# Executive Summary

France is the largest producer and exporter of prunes in Europe. As a
result of two abnormally large crops in 2001 and 2003, beginning stocks
in MY 2004/05 were as high as production: 44,000 MT each. France and the
United States compete on European markets (mainly the UK, Germany,
Greece, the Netherlands and Italy). However, the two leading export
markets for French prunes in MY 2003/04 were Algeria (16 percent market
share) and Russia (11 percent). Since 2002, prunes harvested under
certain standards have benefited from a Protected Geographical
Indication (PGI) with a European logo and \"pruneaux d\'Agen\" brand
name.

# Section I: Situation and Outlook

France is the largest producer and exporter of prunes in Europe. An
average annual production for France is 50,000 MT. In 2001 and 2003,
production reached 57,000 MT, resulting in large stocks, piling up year
after year. This resulted in 44,000 MT of beginning stocks for MY
2004/05, equal to production. In order to prevent stocks from growing
further, the French prune industry took measures to select large grades
only to be commercialized.

As a net prune exporter, France competes with the United States on the
EU markets, specifically in the UK, Germany, Greece, the Netherlands and
Italy. Overall, France supplies more than half of the EU market, while
the United States supplies a little more than a third. In 2003/04,
Algeria remained France's largest export market (16 percent market
share), while Russia became France's second largest export market (11
percent).

Since 2002, prunes harvested under certain standards have benefited from
a Protected Geographical Indication (PGI), with a European logo
\"Pruneaux d'Agen\" brand name. This brand name promotion is aimed at
the domestic market; it is meant to differentiate high-quality domestic
production from imported product. Please see Paris report FR0009 for
more information on the \"Pruneaux d'Agen\" PGI logo standards, and
Paris report FR1062 for general information on the EU PGI logo system. A
description of the product is available on the EU Commission website
dedicated to PGI products:

[http://www.europa.eu.int/comm/agriculture/qual/en/1201_en.htm]{.underline}

# Section II: Statistical Tables

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

  **Country**     **France**                                                 

  **Commodity**   **Prunes                                      (HA)(1000    
                  (Plums,                                       TREES)(MT)   
                  Dried)**                                                   

                  2003         Revised    2004       Estimate   2005         Forecast

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

  **Market Year                09/2003               09/2004                 09/2005
  Begin**                                                                    

  Area Planted    13450        13400      13400      13400      0            13400

  Area Harvested  12385        12500      12300      12500      0            12500

  Bearing Trees   2450         2450       2450       2450       0            2540

  Non-Bearing     100          100        120        100        0            100
  Trees                                                                      

  Total Trees     2500         2500       2600       2500       0            2500

  Beginning       32500        32500      45000      44000      39000        41300
  Stocks                                                                     

  Production      57777        57777      47000      44000      0            48000

  Imports         3100         2900       2000       2800       0            2800

  TOTAL SUPPLY    93377        93177      94000      90800      39000        92100

  Exports         16700        19700      23000      20000      0            20000

  Domestic        31677        29477      32000      29500      0            29600
  Consumption                                                                

  Ending Stocks   45000        44000      39000      41300      0            42500

  TOTAL           93377        93177      94000      90800      0            92100
  DISTRIBUTION                                                               
  --------------- ------------ ---------- ---------- ---------- ------------ ----------

Sources: French prune growers, French Customs

  ------------------ ------------------------ ---------------- -----------
  **Export Trade                                               
  Matrix**                                                     

  **Country**        France                                    

  **Commodity**      Prunes (Plums, Dried)                     

  Time Period        Oct-Sept                 Units:           MT

  Exports for:       2002                                      **2003**

  U.S.               0                        U.S.             0

  Others                                      Others           

  Algeria            3988                     Algeria          3171

  UK                 1627                     Russia           2084

  Italy              1265                     Belgium          1698

  Germany            1264                     Italy            1628

  Greece             1209                     Tunisia          1527

  Netherlands        1156                     Netherlands      1430

  Belgium            1097                     UK               1384

  Tunisia            822                      Greece           1322

  Russia             546                      Germany          1297

                                                                

  Total for Others   12974                                     15541

  Others not Listed  2148                                      4179

  Grand Total        15122                                     19720
  ------------------ ------------------------ ---------------- -----------

Source: French Customs

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

  **Country**      France                                       

  **Commodity**    Prunes (Plums, Dried)                        

  Time Period      Oct-Sept                      Units:         MT

  Imports for:     2002                                         **2003**

  U.S.             2                             U.S.           191

  Others                                         Others         

  Argentina        869                           Tunisia        1071

  Tunisia          635                           UK             616

  Chile            355                           Argentina      558

                                                                 

                                                                 

                                                                 

  Total for Others 1859                                         2245

  Others not       1202                                         459
  Listed                                                        

  Grand Total      3063                                         2895
  ---------------- ----------------------------- -------------- ----------

Source: French Customs

# Section III: Supply, Demand, Policy and Marketing

## Production

In 2004, French prune production amounted to 44,000 MT, down from 57,700
MT in 2003. As a result, beginning stocks and production in MY
2004/2005, each equaled 44,000 MT. These heavy stocks resulted from the
abnormally large crops of 2001 and 2003. Consequently, the French prune
industry decided stricter grade standards for prunes harvested in
2004/05, so that the largest grades (of highest quality) only will be
commercialized.

![](media/image2.wmf)

## 

## Consumption

## 

Prunes are consumed fresh or as a processed-food product in juices or as
ingredients for cookies, yogurts, etc. French domestic consumption
remains high, due in part to the domestic marketing efforts of the
French Prune Board (BIP). These include TV campaigns, distribution of
samples to children in ski resorts, prune cuisine in hotel chains, and
BIP's presence in major shows such as the International Agricultural
Show (SIA) and the \"Children and Taste\" show (\"Les Enfants du Goût")
in Paris.

Processed prunes included the following in 2002/03 and 2003/04:

  ---------------------- ------------ ----------- ----------- ------------
                         Raw Prunes               Final       
                         Used for                 Products    
                         Processing               Processed   
                         (MT)                     from Prunes 
                                                  (MT)        

                         2002/03      2003/04     2002/03     2003/04

  Prune Purée            1,259        1,125       2,516       2,341

  Prunes in Syrup        415          385         1,200       1,203

  Juices and             540          486         1,220       1,159
  Concentrates                                                

  Stuffed Prunes         59           43          84          62

  Other                  53           107         77          125

  TOTAL                  2,134        2,147       4,906       4,891
  ---------------------- ------------ ----------- ----------- ------------

## Trade

France is a net exporter of prunes, and prune imports are insignificant
compared to domestic production.

France competes with the United States on the EU market. France and the
United States respectively supply about 53 and 35% to the EU. French and
U.S. prunes compete in the UK, Germany, Greece, the Netherlands and
Italy. Algeria is France's leading export market, with 16 percent market
share in 2003, due to consumer preferences similar in France and in
Algeria. In MY 2003/04, French exports boomed to Russia, which is a
major market for cheap prunes and traditionally imports mainly from
Chile and Argentina. French trade of prunes with Tunisia consists of
prunes exported by France to be pitted in Tunisia and reimported into
France as pitted prunes.

## Marketing

The French strategy is to continue to produce large grade, high-value
prunes, as there are no major competitors to France on this market: the
Californian product on the market is principally pitted prunes, while
Chilean prunes are low grade. Moreover, Argentine prunes are mainly
produced for the processing industry.

French prunes produced under certain standards now benefit from the
Protected Geographical Indication (PGI) European logo and French prune
growers hope that this PGI will help differentiate their product. The
prized name \"Pruneaux d'Agen\" can only be used for French prunes.
Please see Paris report FR0009 for more information on the \"Pruneaux
d'Agen\" PGI logo standards, and Paris report FR1062 for general
information on the EU PGI logo system. A description of the product is
available on the EU Commission website dedicated to PGI products:

[http://www.europa.eu.int/comm/agriculture/qual/en/1201_en.htm]{.underline}

The French prune board (BIP) administers its own budget for overseas
promotions. In calendar year 2001, BIP's total promotional budget
(domestic and overseas) amounted to 2.9 million Euros (\$2.6 million),
from this amount only 790,000 Euros (\$707,885) were used for overseas
promotions. The BIP budget is funded by the industry from a two percent
contribution levied on growers' sales and another two percent on
processors' sales. BIP does not conduct activities in the United States.
Information on characteristics of French prunes and the French prune
industry is available on BIP's website (in French and English):
[http://www.pruneau.fr](http://www.pruneau.fr/)