The processed vegetable sector in France is made up of 11 companies, 30 industrial sites, 15,000 industrial jobs and almost 5,500 farmers. Sweetcorn represents almost 20% of processed vegetables, concerns 1,000 farmers, 6 companies, 7 industrial tools and over 1,500 employees. Aquitaine is France’s number 1 sweetcorn production region (85% of acreage).
A large amount of French sweetcorn is exported to neighbouring European countries. French trade balance is largely positive and reached €146 million in 2012.
The main companies in the South West of France are:
-Bonduelle’s production unit in the Landes, created within the SOLEAL structure (145 employees), of which shareholders are Bonduelle Maisadour, Euralis and Vivadour. They process 36,000 tons of sweetcorn per year and 19,000 tons of frozen vegetables. Bonduelle is also present in Brittany, and has many production sites in Hungary.
-Géant Vert is an American brand. Their only production unit in France is in the Lande region and is partners with the cooperative Euralis.
- Conserve de France, in the Lot-et-Garonne region, belongs to an Italian group. Their volume is low (4,000 tons of sweetcorn) and consolidates their volume produced in Italy.
- Daucy is Breton group CECAB’s brand and is present in the South West, the Lot-et-Garonne and the Dordogne. The group have also invested in Spain and Hungary.
- The group of Breton cooperatives (CAM56, Coopagri Bretagne and Kéolis) have a production unit in the Centre region.
-Belgian group ARDO have a site in France for sweetcorn as well as their ALS (Aquitaine frozen vegetables) site and the Dutch group Pinguin, also present in Hungary.
All of these groups export a considerable amount of their production, despite France’s production share decreasing, benefiting Hungary.
2013 was a bad year in terms of production with low yield due to the weather during the Spring. French companies saw their positions diminish due to lack of production. Competition from Poland began in 2011.
2014 trends
The European sweetcorn market has a very weak growth. Measures concerning production are being developed to replenish the very low stock, linked to the low harvest in 2013.
French producers farmed 22,500 ha compared to 37,000 ha in Hungary. Yield is good and the factories in the South West are in full swing. The future is in the strategies chosen by the companies based in France.
The most important factors are :
- Bonduelle has just bought a frozen vegetable factory in Canada in order to develop in the USA. This acquisition brings their number of production units to 11 in North America, of which 8 are in Canada and 3 in the USA.
- At the same time, the group is developing how they manufacture their cans to better deal with production costs in a sector which now includes 3 large global groups. Bekescasaba’s Hungarian factory has just acquired a pilot unit for box production. In Russia the group have a privileged “wall to wall” solution by working directly with their supplier, Krone, to manufacture the boxes on site, limiting transport costs.
These 2 factors bring both opportunities and threats to France. Bonduelle’s Canadian acquisition should allow them to maintain, develop even, their market share on the global stage and therefore their profitability, which is positive for sweetcorn.
Challenges to be met to protect French sector:
- French consumption to be boosted. Whilst sweetcorn is consumed and considered a vegetable by many countries, European included, it is not the case in France for fruit and vegetable advertising campaigns.
- International agreements : current ongoing discussions (Europe-Canada and USA) will determine 2016-2017 trade.
-Regulations and technical aspects : sweetcorn farming concerns a small amount of acreage and is not of interest to research, notably crop protection research. New regulations banning the use of molecules and products means the French sector is weakened as such molecules are authorised elsewhere in Europe, notably in Hungary.
Economic issues for the sector:
- Sweetcorn price has the same index as consumption corn.
- Companies are currently benefiting from CICE which gives a competitive advantage to French sites. It is a good time to develop production capacities and productive investments.
France maintains their global position thanks to :
- regular production
- record productivity : field yield is the best in Europe
- Sowing spread out over 3 months, as is harvest, allowing an optimum use of industrial tools and therefore better production costs.
- Farmers knowledge : the network has been set up for many years and the farmers are trained and active.
- Downstream businesses that invested in effective production units.
- Alliances between the downstream cooperatives and industrials.
- The presence of 2 out of 3 major operators in France (Bonduelle and Géant Vert) and main European operators (Belgian, Dutch).
In conclusion, it is in these real strengths that the sector can lean on, without forgetting to adapt to the market, to the organic trend and to themes linked to the effect on the environment. It may be time to “get back” some of the production volume in France with an aim to once again becoming the main player in Europe. This would allow them to use more acreage for farming, on the condition that the irrigation structures could be developed…an entire agenda!