2014-04-03 05:16:04 - France Agribusiness Report Q2 2014 - a new market research report on companiesandmarkets.com
We believe the grains sector in France will continue to outperform other agribusiness segments in terms of production growth. This will be reinforced by the ongoing reforms of Common Agricultural Policy subsidies, which are likely to have more of an effect on dairy and livestock farmers than grain farmers. The agriculture minister´s proposal to shift some 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 the current production trajectories of each sector. The meat industry will continue to suffer from recurring scandals linked to the presence of horsemeat on the beef market, which will generate downside risks to demand over
the medium term.
- Wheat production growth to 2017/18: 10.7% to 39.8mn tonnes. We expect wheat to remain the most profitable crop in the country and the one most in demand for domestic use and exports.
- Poultry consumption growth to 2018: 4.9% to 1.7mn tonnes. We see stronger long-term demand growth for poultry than for pork or beef owing to poultry´s general affordability and reputation for better health benefits than red meat.
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