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- France Agribusiness Industry Update Quarter 3 2012
France Agribusiness Industry Update Quarter 3 2012
Summary
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BMI View: We believe the grain sector in France will continue to outperform other agribusiness sectors in
terms of production growth This will be reinforced by ongoing reforms of Common Agricultural Policy
subsidies that are likely to have more of an effect on dairy and livestock farmers because they are often
smaller than grain farmers The agriculture minister's proposal to shift part of EU subsidies from crop
farmers to dairy or livestock farmers could support production growth in the latter, even though we do not
see this as sufficient to turn around current production trajectories for each sector
Key Forecasts
- Wheat production growth to 2016/17: 12 7% to 40 6mn tonnes We expect wheat to remain the most
profitable crop in the country and the crop most in demand for domestic use and exports
- Poultry consumption growth to 2017: 4 9% to 1 7mn tonnes We see more growth potential in the
poultry sector than in other livestock segments because of its generally higher affordability and reputation
for better health benefits than red meat
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