FRANCE A. MARKETS FOR FRESH FRUITS AND VEGETABLES. 1.Market Trends and Opportunities. 1.1 Market Opportunities

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1 FRANCE A. MARKETS FOR FRESH FRUITS AND VEGETABLES 1.Market Trends and Opportunities 1.1 Market Opportunities France is the third largest importer and the large consumer market of fresh fruits and vegetables in the EU. About 25 per cent of imports come from developing countries such as Morocco, S. Africa, Tunisia, Mexico, Kenya, Senegal, Israel, etc. The exotics, mainly bananas, pineapples, melons, avocadoes, guavas, mangoes, and some temperate vegetables like tomatoes, sweet peppers, beans and garlic are popular import items. Imports are mostly direct from the country of origin. However, only a part of some of the exotics is imported from Belgium. Minor exotics like avocadoes, lychees, artichoke, and new fruits have ready market in France. Domestic production cannot meet demand for exotics and year-round demand for a wide variety of fresh fruits and vegetables. Grapes represent about 60 per cent of total fruits production in France. However, it major production volume is used for wine making. Apples, peaches, nectarines, melons, plums, pears, apricots, cherries, oranges and berries are other fruits produced locally. In view of the climatic diversity like fruits a large variety of vegetables are also produced in France. These include tomatoes, sweet corn, lettuce, onions, green peas, carrots, cauliflowers, etc. During the past few years the production of only apricots, cherries, oranges and berries increased. Outputs of other items stagnated for a longer period. Some of the opportunities in France are: France is a large consumer market. Consumption is increasing in value but decreasing in volume. Consumptions declined in volume for two reasons (a) harvest was low for climatic reasons (hottest summer) and price went up as supply was less. Imports of fruits from developing countries are decreasing in value and increasing in volume. Imports of vegetables from developing countries are increasing in value and volume. Imports of exotics are among the highest in the EU and gaining popularity. Such fruits include artichoke, avocadoes, lychees, dates, pitihaya, pomelo, etc. France has a large and ready market for minor fruits. Domestic production is decreasing leading to increase import needs in future. Consumption of tropical fruits including mangoes is growing. The most popular mango spices are Osteen, Kent, Tommy Atkins and Haden. A healthy life style is gaining popularity. Consumers prefer prepared and ready-toeat products with high nutritional values. According to CTIFL (2007) long-term trend in volume is downwards, while value is expected to increase. 229

2 1.2 Consumption Recently consumption of fruits and vegetables is increasing. In 2006 total consumption of fruits was 1.9 million tonnes valued at Euro 3.5 billion and total vegetables consumption was 1.8 million tonnes valued at Euro 3.7 billion. French annual fresh fruits consumption was Euro 75 (151 kgs) per household in The most important fruits consumed are apples, peaches, nectarines, pears, oranges. Consumption of exotics includes pineapples, lychees, and mangoes. But their share in total is still small. Consumption of vegetables was Euro 74 (151 kgs) per household (Table I). The most popular vegetables are tomatoes, carrots, lettuce and chicory. Table I: Consumption in Euro and Kg / year of Fruits and Vegetables in France Value in Million Euro and Volume in Thousand Tonnes Items Value Volume Value Volume Value Volum e Fruit total Household Kg and Euro Total Vegetables Kg and Euro Source: CTIFL, Import Analysis Fruits In 2006 imports of fresh fruits were Euro 2.2 billion and 2.7 million tonnes, representing an increase of 10 per cent in value and 4 per cent in volume over the year Due to decrease in import of bananas and pineapples the volume of import from developing countries decreased. About 72 per cent of total import of fruits comes from developed countries with Spain as a major supplier. Tangerines are the main imported fruit12% of total import 2006, followed by oranges (11%), bananas (10%), strawberries (8%), avocadoes (6%) and grapes (6%). (Table II) Bananas, pineapples, avocadoes, melons, watermelons, dates and figs are the main imports from developing countries particularly from former French colonies like Morocco, Ivory Coast, Senegal, etc. in French import of avocadoes amounted 38 per cent of total avocadoes imported in EU markets. France is also a large importer of minor exotics like dates, figs, durians, tamarinds, lychees, strawberries, melon, etc. Between 2002 and 2006 import of bananas into France decreased by 23 per cent in value and volume. The main suppliers were Ivory Coast (25%), Surinam (7%), and Cameroon (4%). After bananas and avocadoes, pineapples are the third largest fruit supplied by developing countries. Total imports of pineapples amounted to 71,000 tonnes with a value of Euro 52 million. Import decreased by 41 per cent in value and 50 per cent in volume between 2002 and The main suppliers are Ivory Coast (39 per cent of total import 2006) and Ghana (22%). Belgium and the Netherlands were the main EU 230

3 suppliers (25% together) of pineapples, but the products are originated in other developing countries. Table II - Imports of Selected Fresh Fruits and Leading Suppliers Product Value in Euro Value in Euro Leading Suppliers and their market Million 2002 Million 2006 shares in % of 2005 Total Developing Countries Total Developing Countries All Fruits Spain 44, Belgium 9, Italy 8, The Netherlands 7, Israel 4.8, Morocco 4.9, Ivory Coast 4, Tunisia 1.7, S. Africa 1.6 Citrus Spain 77, The Netherlands 4.7, Belgium 3.1, Morocco 4.3, Tunisia 1.4. Exotics Spain 13, The Netherlands 7, Belgium 6, Ivory Coast 9, Peru 8, Tunisia 7, Mexico 5, Ghana 5. Bananas Belgium 38, The Netherlands 8, Italy 7, Ivory Coast 24, Surinam 7, Cameroon 4.3 Grapes Italy 56, Spain 20, The Netherlands 9, Belgium 2.3, Israel 2, Chile 3.4, S. Africa 2.7, Morocco Mangoes and Guavas The Netherlands 10, Belgium 3.7, Spain 3.7, Israel 31, Peru 5, Ivory Coast 13, Brazil 5, Mali 3.1, Pakistan 2.4 Source: Eurostat 2006 and 2007 Vegetables In 2006 imports of vegetables were Euro 1.4 billion and 1.6 million tonnes representing an increase of 14 per cent in value and volume over the year Major sources of imports are Spain (43% of total imports) and Morocco (17%). (Table III) Tomatoes (25% of total import 2005), peppers (11%), courgettes (8%) and beans (8%), mushrooms (6%) and garlics are the major imported vegetables of France (Table III). France is the largest importer of French bean in the EU accounting for 25 per cent of total bean import. Most of these items are also imported from developing countries with highest share in tomatoes and beans. Morocco is the leading supplier from developing countries. Table III - Imports of Selected Fresh Vegetables and Leading Suppliers Product Value in Euro Million 2002 Total Developing Countries All Vegetables Value in Euro Leading Suppliers and their market Million 2006 shares in % of 2006 Total Developing Countries Spain 43, Belgium 9, The Netherlands 9, Italy 6, Germany 3, Israel 3.5, Morocco 17, Kenya 1.1, Argentina 0.8, Senegal 0.7, Egypt 0.5 Tomatoes Spain 36, Belgium 12, The Netherlands 7, Italy 2.9, Germany 1.7, Israel 3.6, 231

4 Morocco 34, Tunisia 0.6, Senegal 0.6, Peas Spain 9, Italy 2.5, Germany 2.4, &Beans Morocco 54, Kenya 14, Senegal 7, Egypt 5, Product Value in Euro Value in Euro Leading Suppliers and their market Million 2001 Million 2005 shares in % of 2005 Total Developing Countries Total Developing Countries Sweet peppers Spain 55, The Netherlands 8, Belgium 1.5, Israel 24, Morocco 9, Garlic Spain 65, Germany 2.3, The Netherlands 1.3, Argentina 20, China 3.5, Mexico 3, Egypt 0.7, Morocco 0.7. Source: Eurostat 2006 and Trade and Consumer s Preference o Preference for domestically prepared food. French consumers have a strong preference for domestically prepared foods. o Preference for non-french new food. Non-French such as Thai, Indian and North and West Africans prefer more fruits and vegetables in their meals. They are interested in new non-french dishes also. Exotics and lesser-known species are picking up the market. Consumption of exotics fruits is high as compared to other EU markets. o Health concern receives more attention. Nutritional value, organic, low-fat items, and health benefits of fruits and vegetables are recognized. o Market Segments. Elderly people and middle aged families are the major consumers of fresh fruits and vegetables. These people consume 58 per cent and 28 per cent more of fruits and vegetables than those of young people. One of the reasons for low popularity among the young people is the complex preparing and eating processes. o Price Consciousness. French are becoming highly price-conscious. Like in other western European countries French also prefer to do shopping at discount stores as a result such stores are growing fast. 4. Legislative Requirements Requirements are defined through national legislation and through labels, codes and management systems. These are based on environmental, consumer health and safety and social concerns. 4.1 Tariffs : Refer More information on duties and taxes are available at For fresh fruits and vegetables, the reduced VAT rate of 5.5% is applicable. 4.2 Non-tariffs Refer the EU Market Report on FFV 232

5 5. Non-legislative Requirements 5.1 Grading, Packaging, Marking and Labelling More information on labeling and product ingredients regulations is found on website of the Direction Generale de la Concurrence, de la Consommation it de la Repression des Fraudes (DGCCRF) More information on food quality is available from the DGAL, Direction Genegale de l Alimentation Trading Practices Trade Structure: Trade Channels: France has a highly developed distribution system. Most of the overseas imports enter through the ports of Le Havre and Marseilles, the Antwerp Port of Belgium and the Rotterdom Port of the Netherlands. Rungis, located 12 km south of Paris is the largest wholesale market in France. Other wholesale markets for fruits and vegetables are located in Lyon, Marseilles, Nice, Bordeaux, Nantes and Lille. Specialized importers and agents are the major trading parties for exporters in developing countries. Retail Trades: There are 3000 enterprises engaged in fresh produces; 2800 are producers, 90 packers and carriers and 105 wholesalers. Large supermarkets, discount stores, and hypermarkets are located outside the cities. These outlets accounted for 70 per cent of total fruits and vegetables sales in Shares of discount stores 10 to 12 percent for fruits and vegetables are growing. There are many small retail shops are located inside the cities. Some of the large importers are: Katope France for Exotic fruits Fruitiere Legend Some of the large retailers are: Carrefour: Casino group: Intermarche : E.Leclerc: Dlehaize Group: 6. Other Market Information Selecting a suitable trading partner. The business environment in France is generally informal but professional. Once agreed punctuality and follow-ups are considered very important. Most of the buyers are reluctant to speak English. 233

6 Some of the Sources of Information Institutions Subject Areas Web pages / addresses CTIFL Fruit et Legume Market Info Detailed Import Analysis The France Markets for Fresh Fruits and Vegetables 1.Market Trend and Opportunities In 2007 grapes import to France has increased by 25% in five years but quantity decreased by 6%. The average unit price has increased from US $ 1,121 per ton in 2003 to US $ 1,498 per ton in In five years time the value of Mango has increased by 75% and the quantity has increased by 21%. The average unit prices of mangoes in the five years have gone up from US $ 1,810 per ton in 2003 to US $ 2,611 per ton in Similarly from the market for chilli have increased by 65% in value and 17% in quantity. The unit price of chilli has gone up from US $ 1,365 per ton in 2003 to US $ 1,922 per ton in The markets for pineapple have increase by 24% in value and 27% in quantity in five years time. The unit price per ton has increased from US $ 880 in 2003 to US $ 917 in Summary Table: Import of Fresh fruits and Vegetables in Fresh fruit and Vegetables Market Product 2003 Value in $000 Qty in Tons 2007 Value in $000 Qty in Tons Value Change in% in 2006 Major Sources and Share in % and other information Value Qty Value Qty Value Qty Grapes 171, , , ,579 25% -6% Italy (56%), Spain (19%), South Africa (9%) Average Yearly Unit Price $ 1,121 per ton in 2003 $ 1,239 per ton in 2004 $ 1,324 per ton in 2005 $ 1,269 per ton in 2006 $1,498 per ton in 2007 Mango 58,298 32, ,286 39,162 75% 21% Peru (28%), Israel (27%), Brazil (9%) Average Yearly Unit Price $ 1,810 per ton in 2003 $ 1,858 per ton in 2004 $ 2,434 per ton in 2005 $ 2,145 per ton in 2006 $ 2,611 per ton in 2007 Chilli 157, , , ,788 65% 17% Spain (60%), Israel (20%), Morocco (9%) Average Yearly Unit Price $ 1,365 per ton in 2003 $ 1,642 per ton in 2004 $ 1,409 per ton in

7 $1,343 per ton in 2006 $ 1,922 per ton in 2007 Pineapple 119, ,400 91,215 99,377 24% 27% Cote d Ivory (45%), Ghana (24%), Costa Rica (10%) Average Yearly Unit Price $ 880 per ton in 2003 $906 per ton in 2004 $ 893 per ton in 2005 $ 854 per ton in 2006 $ 917 per ton in Import Analysis Grapes: From France has imported 141,100 tons of grapes as a whole of unit value of US $ 1,269. Average annual import growth rates of grapes in France were 7% in value and 1% in volume from 2002 to Major import partners of France in Grapes are Italy (55%), Spain (18.9%), and South Africa (8.9%). The imported five years of time shows that in 2003 France imported US $ 171,028 thousands valued grapes which increased to US $ 215,095 thousands in This shows that the import of grapes in France is in increasing trend but in 2006 it was decreased to US $ 179,074 thousands later again in 2007 it increased. September to December are major months for the imports of grapes into France. The Unit prices for the period of one year in average shows that Grapes per ton were US $ 1500 to US $ 2000 according to period of imports. Below Graphs shows the change in unit price for the period of one year. Grapes unit price Monthly (US $ per ton) Lychees: The imports of Lychee s 2003 was US $ 32,655 thousands which increased to US $ 74,876 thousands in 2004 which then declined in then again it has increased but in slow trend. In the year 2007 the imports of lychees has reached to US $ 44,849 thousands in Mangoes: In the year 2006 total quantity of mangoes imported by France was 35,297 tons. Those manogoes were imported in France with a unit value of US $ 2,145 per ton. Import growth rate of mangoes in France in value was 24% from

8 Likewise imported growth rate in qauantity was 7%. Major import patners of France are Peru (27.9)%, Israel (26.9)%, Brazil (8.7)% and Netherlands (7.4)%. The imported value in five years of time shows that in 2003 France imported US $ 58,298 thousands which increased to US $ 102,286 thousands in 2007 this shows that the import of mangoes in France is in increasing trend. The imports of Mangoes in France will be higher from August to January. And the average unit price for the year goes from US $ 1500 per ton to US $ 3500 per ton. Below Graphs shows the change in unit price for the period of one year Mangoes unit price Monthly (US $ per ton) Chilli: In the year 2006 France has imported 140,013 tons of chilli. As a whole the unit price per ton was USD 1,345. The growth rate of chilli from in value was 14% and in quantity 5%. Import growth in value from was 1%. The major exporter of Chillies to France are Spain (59.3)%, Israel (20.3)%, Morocco(9.1)%. In 2003 France imported US $ 157,828 thousands of Chilli which has increased to US $ 261,090 thousands in 2007 this shows that the imports of pepper in France is in increasing trend. The monthly table of Chilli shows that there is huge supply of chilli from November to March. And the price range from US $ 1500 per ton to US $ 2200 per ton. Below Graphs shows the change in unit price, $ per ton, for the period of one year. 236

9 Pineapples: In the year 2006 France has imported 113,013 tons of pineapples of which average unit price is USD 855 per ton. The import growth rate of pineapples for five years in value was -1%. Likewise imported growth rate in qauntity for five years was -8%. The major import patners of France are Cotedlvior(45.3)%, Ghana (24.2)%, Costa Rica(10.6)%. The imported five years time shows that in 2003 France imported US $ 119,169 thousands of Pineapple which has decresed to US $ 91,215 thousands in This shows that the market for pineapple in France is in decreasing trend. The monthly table shows that November January are the period for more imports of pineapples in France. The average price fluctuate from US $ 700 to US $ 1200 according to the period of import. Below graph shows the fluctuation of average unit price of Pineapple in Month US $ per ton Unit Price Calculation in USD per ton (Monthly Graph of Pineapples) 237

10 a. Grapes Table I -Imports of Grapes in in USD thousands Exporters 'World 171, , , , ,095 'Italy 103,465 87, ,444 99, ,186 'Spain 26,714 27,637 32,935 33,867 29,877 'South Africa 14,685 31,451 19,942 15,748 18,451 'Chile 10,022 12,045 10,420 10,778 14,374 'Morocco 2,039 4,075 5,090 4,044 5,356 'Israel 2,713 10,731 11,069 3,526 4,635 'Argentina 2,686 3,747 3,363 3,155 4,373 'Peru ,414 2,008 'Netherlands 2,706 2,108 1,589 1,331 1,842 'Egypt ,596 'Belgium ,269 1,566 'Brazil 2,196 2,753 2,841 1,119 1,038 'India Table II Imports of Grapes in in Quantity in Tons Exporters quantity, quantity, quantity, quantity, quantity, Tons Tons Tons Tons Tons 'World 152, , , , ,579 'Italy 103,607 85,141 99,868 89,747 96,472 'Spain 24,469 23,791 23,589 24,493 17,818 'South Africa 8,898 18,868 10,497 8,851 9,602 'Chile 5,932 7,200 6,323 6,371 7,836 'Argentina 2,138 2,197 1,807 1,742 2,381 'Israel 1,361 5,141 5,413 2,283 2,116 'Morocco 983 1,990 2,393 2,586 2,011 'Netherlands 1,497 1,499 1, ,034 'Peru 'Belgium 'Egypt 'Brazil 1,214 1,430 1, 'India

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14 b. Lychees Table - I Imports of Lychees from in Value in USD thousands Exporters 'World 32,655 74,876 25,529 21,921 44,849 'Madagascar 26,067 65,788 17,784 12,160 35,777 'Netherlands 984 1, ,686 3,278 'South Africa 3,206 1,849 1,036 2,768 1,798 'Israel 638 2,163 1, 'Thailand ,317 1, 'Mauritius 'United Kingdom 'Belgium 118 1, 'Spain 'Australia 'China 'India c. Mangoes Table I Imports of Mangoes from in Value in USD thousands Exporters 'World 58,298 64,681 84,746 75, ,286 'Israel 8,281 12,029 27,391 20,370 37,658 'Côte d'ivoire 14,684 10,058 12,612 3,698 16,800 'Peru 9,272 9,548 17,379 21,116 9,354 'Brazil 7,267 7,340 7,687 6,585 8,961 'Netherlands 1,923 2,483 3,593 5,607 6,614 'Spain 1,474 3,405 2,787 5,415 5,040 'Mali 2,353 2,810 2,709 2,914 4,371 'Pakistan 1,187 1,856 2,073 1,672 2,475 'Senegal 2,564 3,647 1,922 1,848 2,225 'Burkina Faso 1,100 1,355 1,838 2,013 1,868 'Mexico 1,936 2, ,449 'South Africa 2,257 3, 'India

15 Table II Imports of Mangoes from in Quantity in Tons Exporters quantity, quantity, quantity, quantity, quantity, Tons Tons Tons Tons Tons 'World 32,200 34,803 34,815 35,297 39,162 'Israel 5,143 5,221 7,826 5,784 8,271 'Côte d'ivoire 5,214 5,212 5,372 3,006 6,776 'Brazil 6,196 5,562 4,817 4,520 5,623 'Peru 5,204 6,420 5,855 8,368 4,428 'Netherlands 1,838 2,404 3,514 5,214 4,394 'Spain 839 1,920 1,392 2,464 2,397 'Mali 821 1,057 1,065 1,127 1,610 'Senegal 1,261 1,572 1,318 1,243 1,131 'Pakistan , ,067 'Burkina Faso 'Ecuador 'Mexico 'Germany 'India 'Belgium Table III Imports of Mangoes in 2006 Exporters value 2006, USD thousand Trade balance 2006 in USD thousand Share in France's imports, % quantity 2006 in Tons Unit value, (USD /unit) growth in value between , %, p.a. growth in quantity between , %, p.a. growth in value between , %, p.a. 'World 75,728-45, ,297 2, 'Peru 21,116-21, ,368 2, 'Israel 20,370-20, ,784 3, 'Brazil 6,585-6, ,520 1, 'Netherlands 5,607-1, ,214 1, 'Spain 5,415-2, ,464 2, 'Côte d'ivoire 3,698-3, ,006 1, 'Mali 2,914-2, ,127 2, 'Burkina Faso 2,013-2, , 'Senegal 1,848-1, ,243 1, 'Pakistan 1,672-1, , 'India , Total export growth in value of partner countries between , %, p.a. 243

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18 d. Chillies Table I - Imports of Chillies from in USD thousands Exporters 'World 157, , , , ,090 'Spain 106, , , , ,911 'Israel 18,380 36,170 44,239 38,268 69,540 'Morocco 10,410 14,774 17,767 17,123 29,402 'Netherlands 16,534 16,128 15,240 14,897 20,950 'Belgium 2,234 3,041 2,827 1,969 2,819 'Italy 1,007 1,620 1,272 1,606 2,392 'Germany 'Turkey 'Portugal 'Thailand 'Dominican Republic 'Madagascar 'India Table II Imports of Chillies from in Quantity in Tons Exporters quantity, quantity, quantity, quantity, Tons quantity, Tons Tons Tons Tons 'World 115, , , , ,788 'Spain 83,684 77,769 79,384 91,520 79,689 'Israel 10,092 16,566 21,351 20,851 22,470 'Morocco 10,746 13,229 17,590 17,416 20,243 'Netherlands 7,795 8,000 8,840 6,223 8,671 'Italy 782 1,066 1,062 1,306 1,565 'Belgium 1,061 1,593 2, ,321 'Turkey 'Portugal 'Germany 'Poland 'Thailand 'Dominican Republic 'Tunisia 'Brazil 'Uganda 'Egypt 'Madagascar 'South Africa

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23 e. Pineapples Table I - Imports of Pineapples from in Value in USD thousands Exporters value 2005 in 'World 119, , ,443 96,617 91,215 'Côte d'ivoire 84,996 87,757 63,041 43,763 34,728 'Costa Rica 6,062 7,058 7,574 10,283 17,493 'Ghana 18,454 19,414 21,492 23,421 14,757 'Cameroon 2,560 3,283 1,944 3,156 6,633 'Netherlands 908 1,936 2,924 3,277 3,597 'Belgium ,408 2,620 'Benin 1,752 2,373 1,900 2,369 1,681 'Mauritius ,423 'Togo 857 1, ,320 1,215 'Spain 'Honduras 'South Africa 'Senegal 'India Table II Imports of Pineapples from in Quantity in Tons Exporters quantity, quantity, quantity, quantity, quantity, Tons Tons Tons Tons Tons 'World 135, , , ,013 99,377 'Côte d'ivoire 110, ,015 86,365 61,080 41,093 'Costa Rica 4,903 6,683 8,647 17,082 20,786 'Ghana 11,590 10,406 11,946 17,150 16,326 'Cameroon 3,133 3,666 2,427 4,240 6,981 'Netherlands 907 1,830 2,882 3,332 3,305 'Belgium ,172 2,694 'Benin 933 1,178 1,000 1,160 1,109 'Honduras ,012 1,071 'Spain 'Ecuador 'South Africa 'Togo 'Germany 'Mauritius 'Panama 'Thailand

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