The cattle and sheep slaughterhouse market - France

1.2 The growing global market

The market for the production, processing and packaging of meat products (***) of *%, representing a total increase of **% between **** and ****. This increase will be driven in particular by demographic growth, industry automation and innovation, as well as an upmarket offering. [***]

Global meat industry market size World, **** - ****, in billions of USD Source: ****

Global beef production

Production" refers to slaughtering and cutting. Since ****, there has been an increase in global beef production. Indeed, the volume of production has risen from **.* million tonnes of meat produced in **** to **.* million in ****, an increase of *% over the period. However, it is from **** onwards that production has accelerated, with an increase of *% between **** and ****.

Global beef production World, **** - ****, in millions of tons Source: ****

The American continent dominates the world beef market, accounting for almost half of production (***).

Share of beef production by region World, **** Source: ****

America's dominance in beef production is due to the high output of the United States (***). France, Europe's leading producer, ranks *th worldwide with *.* million tonnes produced. Main beef producers worldwide World, ****, in millions of tonnes Source: ****

World sheep meat production

World sheepmeat production is also growing. Over the last decade, the market has grown by **.*%. Since ****, production has risen by **.*% in ...

1.3 Domestic market

Insee provides the market size in ****, as well as the annual sales index for the "processing and preservation of butcher's meat" (***).

Category **.**Z (***) comprises :

the operation of slaughterhouses engaged in the slaughter of animals for slaughter, and the preparation and packaging of meat: beef, pork, lamb, rabbit, mutton, buffalo, bison, etc. production of fresh, frozen and deep-frozen meat carcasses the production of fresh, frozen and deep-frozen butcher's cuts

This market size thus amounted to **.*** billion euros in ****. This figure makes it possible to estimate the size of the meat processing and preservation market in France in ****, by multiplying it by the sales index for the year ****, also communicated by the linsee, then divided by the sales index for ****.

This formula gives: **.*** billion * ***.**/*** = **.*** billion euros, for the year ****. The same applies to the other years:

Market size for meat processing and preservation France, **** - ****, in billions of euros Source: ****

The chart above highlights the long-term growth of the meat processing market. Indeed, the market grew by **% between **** and ****. However, after a sharp rise between **** and **** (***), the market fluctuates slightly between **** and ****. In addition, the health crisis has not had a negative impact on the industry, as **** even sees sales increase by *** million ...

1.4 A positive trade balance for live animals but negative for meat

With regard to imports and exports, it's worth distinguishing between trade in live animals and trade in already-processed meat. Indeed, the latter constitutes a form of competition for slaughterhouses, while the former supplies slaughterhouses with "raw material" for processing.

Live animals :

Cattle

The trade balance for large cattle is largely positive. In fact, the balance is +**.* thousand animals in ****, and the coverage rate (***) is *,***%. However, the following graph shows that this trade balance is declining: it was **.* in ****, with a coverage rate of *,***%.

Large cattle exports and imports France, **** - ****, in thousands of head Source: ****

France exports almost one in two cattle to Italy (***).

Main trading partners for live cattle exports for slaughter France, ****, as % of total Source: ****

Two countries account for the bulk of French live cattle imports: Belgium (***).

Main trading partners live cattle imports for slaughter France, ****, as % of total Source: ****

Sheep :

The trade balance for sheep is positive, although the proportion of imported animals is higher than for cattle. In ****, the trade balance was +*** thousand head, with a coverage rate of ***% (***).

Import volume of live lambs France, ****, in thousands of head Source: ****

France Agrimer does not provide statistics on the main commercial suppliers of live lamb. However, according ...

2.1 Decrease in meat consumption

Total meat consumption in France over the past decade has fallen very slightly, with average annual per capita meat consumption (***) down by just *.*% between **** and ****. However, this slight decline has been a structural trend for * decades, with a *.*% drop in **** compared to ****, and a *.*% drop between **** and ****.

While meat consumption in general is declining only slightly, consumption of beef and sheep meat is declining much more sharply. In fact, between **** and ****, beef and veal consumption will fall by **.*%. Sheep and goat meat consumption, meanwhile, fell by **.*% over the same period. Poultry consumption in particular is offsetting the fall in beef consumption in total meat consumption.

Average annual per capita consumption France, **** - ****, in kg/capita Source: ****

The following graph shows the breakdown of consumption by volume of the different types of meat in France in ****. Pork is the most consumed meat (***)

breakdown of average per capita consumption by meat type France, ****, in Source: ****

According to Interbev, the average individual consumption of butchered meat (***) for adults in France was *** grams per week in ****, of which **% was beef, **% pork, *% veal, *% lamb and *% horsemeat. This figure only concerns cooked meats, and therefore excludes charcuterie. This is why the proportion of pork is lower than ...

2.2 Demand for beef and sheep meat

Penetration rates

The following graph shows the penetration rate of beef and sheep meat in France. The penetration rate is an indicator that reflects the proportion of consumers in relation to the number of potential customers (***) who purchased the product during the year.

In detail, the penetration rate for beef, excluding processed meats, is high (***)[***].

Ovine meat, for its part, has a relatively low penetration rate (***).

Offal penetration rates are the lowest, at **.*%, **.*% and *.*% respectively for beef, veal and sheep.

Penetration rates for various products France, **** - ****, in Source: ****

Sociography of demand :

Breakdown of demand by region :

The following three graphs show the regional distribution of demand for beef, veal and sheep meat, and should be viewed in the context of the respective regional populations, which are listed in the following table:

The regions that consume the most beef in absolute terms are the West (***) of beef volume to regional population, beef is most popular in the North and South-West, and least popular in the Centre-East and Paris region.

Breakdown of beef volume purchases by region France, ****, as % of total Source: ****

The breakdown is similar for veal, where the regions with the highest consumption are the Paris region and Centre-Est. However, ...

2.3 More and more demand for organic meat

According to an IFOP survey for Interbev, among French meat eaters (***), before remaining stable by fluctuating +/- * points since then.

Frequency of organic meat consumption France, ****, in Source: ****

In detail, the proportion of organic meat consumers is highest among the over-**s (***).

The main reasons for consuming organic meat are respect for animal welfare, health benefits and greater sanitary control.

Reasons for organic meat consumption France, ****, as % of total Source: ****

The majority of French people (***).

Perceived legitimacy of more expensive organic meat compared to non-organic meat France, ****, in Source: ****

2.4 Demand trends: animal welfare takes center stage

Over the past decade, there has been a growing concern about animal welfare in the meat industry, provoked and/or accentuated by videos from the L*** association that have raised public awareness.

According to a **** IFOP poll for the ** Millions d'Amis foundation, a very large majority of French people (***) agree that the practice of slaughtering animals consciously, without prior stunning, is unacceptable under any circumstances. This is *% less than in ****. Yet this practice is widespread in slaughterhouses, as part of ritual slaughter to enable the production of halal and kosher meat.

Consumers are also increasingly aware of the health risks associated with ritual slaughter. The main health risk associated with this type of slaughter relates to the health and safety of the carcass, and stems in particular from the "slicing of the trachea and esophagus, which can cause the gastric contents (***), and pathogenic to humans, to reach the meat.[***]

Support for the statement that the slaughter of conscious animals is unacceptable France, ****, in Source: ****

to the question: "To avoid abuses in slaughterhouses (***).

Support for slaughtering livestock on the farm rather than in abattoirs France, ****, in Source: ****

Animal welfare in the meat industry concerns not only the slaughter stage, but also the ...

3.1 Meat industry value chain

Slaughterhouses are at the heart of the supply chain, upstream from processing and distribution, and downstream from livestock farming and intermediaries/live animal traders. The latter play a major role between livestock farmers and slaughterhouses. Intermediaries can be of several kinds. There are, for example, livestock markets, where buyers and sellers of live animals meet. Over *.* million animals are sold at these markets. [***] The Fédération des marchés de Bétail vif (***) is France's main livestock traders' union. According to their figures, **% of breeders work with traders, and **% of cattle exported to third countries is done so by traders.

3.2 Slaughter market structure

Slaughterhouse activity is listed under NAF code **.**Z: processing and preservation of butcher's meat (***) but excludes poultry and game.

Between **** and ****, the number of establishments fell by **% (***).

Number of meat processing and preservation establishments France, **** - ****, in number of establishments Source: ****

Workforce registered under activity **.**Z France, **** - ****, in headcount Source: ****

However, these figures encompass more than just slaughterhouse activity. According to the French Ministry of Agriculture, the number of meat slaughterhouses was *** at the end of **** , with a wide disparity in volumes produced (***). The number of slaughterhouses is on the decline, with France Agrimer counting *** in ****, compared with between *** and *** in the ****s. [***]

The concentration of the sector is confirmed by the number of cattle slaughterhouses (***) in France, repertoried by Normabev. Indeed, this number fell by **.*% between **** and ****, from *** to *** establishments.

Number of cattle slaughterhouses France, **** - ****, in number of establishments Source: ****

The concentration of establishments is also geographical, as shown on the following map. Indeed, there is a geographical imbalance in the number of slaughterhouses, with a concentration in the west of the country and a weak network in certain regions such as Ile-de-France and the south-east.

Source: ****

Costs and current income in the beef slaughtering and cutting ...

3.3 Production: slaughter volumes down

The main indicator of production at French slaughterhouses is slaughter volume. There is a downward trend in the volume of cattle and sheep slaughtered in France. In fact, in ****, the number of controlled cattle slaughters fell by *% compared to ****, **% compared to **** and **% compared to ****. For sheep, although the drop is less marked between **** and **** (***).

We also note that more sheep than cattle are slaughtered. This is due to the lower marketable meat weight of sheep compared to cattle (***). Indeed, in ****, the average slaughter weight per head is **.* kg for sheep versus ***.* for cattle, i.e. a ratio of around * bovine animal for every ** sheep.

Controlled cattle and sheep slaughterings France, **** - ****, in thousands of head Source: ****

The following chart shows the breakdown of gross indigenous production for each meat. Gross domestic production is calculated for each animal from slaughterings plus exports and total imports of live animals. [***] In France, pork is the most produced meat (***).

Gross indigenous meat production France, ****, as % of total Source: ****

The case of ritual slaughter:

Concerning more specifically French meat production respecting ritual slaughter (***), figures from a Ministry of Agriculture report published in **** announce **% ritual slaughter for the cattle market, and **% for the sheep market. Of this ...

3.4 Production: limited yields

Throughout the value chain (***), from animal transport to processing, there are numerous losses. As a result, yields from animal to plate are limited and vary according to the animal:

Cattle:

For a whole suckler cow (***) with an "empty live" weight, i.e. when the animal is alive, of *** kilograms, the losses and yields during the production stages are listed in the following table:

Source: ****

The (***) is **%. Added to this is the loss of weight during cooking.

it should be noted, however, thatpart of the losses incurred during the transformation of the whole animal into marketable meat (***), which also constitute the *th quarter, but which are not part of the "cold carcass", can also be marketed.

Sheep :

Source: ****

The ratios for lambs are more interesting than for cows. In fact, the ratio of (***) is around **% for this type of meat. The ratio of marketable meat to cold carcass weight is **%. As with cattle, the *th quarter is made up of offal and trimmings, as well as co-products used in other industries.

3.5 Distribution channels dominated by supermarkets

The main distribution channels for beef and sheep meat to consumers, and therefore the main customers for abattoirs, are supermarkets and hypermarkets. Specialized stores (***) are also major players in the distribution chain.

Beef:

For beef, **.*% of distribution is captured by hypermarkets and supermarkets. Specialized stores, meanwhile, account for **.*% of the volume of meat sold. Next come convenience stores (***). Online sales account for *.*% of distribution.

Breakdown of beef distribution channels France, ****, as % of sales Source: ****

Distribution network shares vary slightly for veal. Hypermarkets and supermarkets account for a smaller share (***). Distribution channels for veal (***) France, ****, as % of sales Source: ****

Ovine meat :

For sheepmeat, hypermarkets and supermarkets still dominate distribution (***). Distribution channels for ovine meat (***) France, ****, in Source: ****

France Agrimer also notes that the covid-** health crisis has led to the growth of alternative distribution channels to supermarkets and hypermarkets. The network that has developed the most is online (***), which has seen punctual growth of **% to ***% during the months of confinement. Meat distribution was also stronger in specialized stores, convenience stores and markets during these periods. The development of these alternative distribution channels is intensifying competition, even though they are still largely in the minority.

4.1 Sharp rises in meat prices

The following two graphs show the evolution of the consumer price indexes for beef and sheep meat in relation to the general price index. The price index is used to estimate the average variation in prices of products consumed by households. It is based on the observation of a fixed basket of goods and services for the general index. The following graphs show that the increase in the consumer price index is greater than that of the general index, testifying to the fact that these * meats are increasingly becoming a high-end product, sometimes even described as a "luxury product".[***]

Consumer price indices France, **** - ****, in index points Source: ****

Consumer price indices (***) France, **** - ****, in index points Source: ****

The following graph shows the evolution of the price of an average basket of one kilogram of beef and sheep meat between **** and ****. In ****, the price of a kilogram ofovine meat was **% higher than that of beef (***).

For beef, between **** and ****, the average basket price rose by *%. In ****, it rose by ** centimes compared to ****, a *% increase in one year.

For meat from sheep, between **** and ****, the average price of a basket rose by *%. In ****, it was ** centimes higher than in ****, an increase of *.*% in ...

4.2 Supply trends: animal welfare and short distribution channels

Animal welfare, a key issue for slaughterhouses

Over the past few years, the issue of animal welfare in slaughterhouses has become increasingly important, particularly in the wake of videos released by L*** that raised public awareness.[***]

The France Relance plan, launched in December ****, includes an envelope of *** million euros dedicated to modernizing slaughterhouses of all species, in order to improve animal welfare and working conditions. The plan is currently supporting *** selected modernization projects throughout France, ** of which include video surveillance systems. Grants awarded range from *,*** euros to * million euros, with an average of ***,*** euros. [***] For example, the Quintin Viandes slaughterhouse received €***,*** from France Relance to modernize its slaughter facilities, with the aim of improving animal protection and working conditions.

CSR initiatives are also developing within slaughterhouses. In ****, for example, the Bigard group launched a voluntary, non-mandatory approach to unannounced third-party audits at its facilities. The audit is carried out by an external veterinarian or ethologist and lasts a minimum of half a day per species. [***] These retailer policies put pressure on slaughterhouses to adapt their offer .

Mobile on-farm slaughtering

Decree no. ****-*** of April **, ****, attached to the Egalim law, authorizes the experimentation of mobile slaughterhouse devices for a period of * years ...

5.1 The main regulatory standards governing the meat industry

Non-exhaustive list.

The " Hygiene Package ": this is a set of European hygiene standards designed to ensure a minimum level of food safety on a European scale, and binding on all players in the food chain. They mainly comprise the following regulations: Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/****, Regulation (***) n°***/****

European Decree ***/**** concerns the traceability of meat products, and was introduced in order to be able to trace their entire journey,

The decree of April *, **** concerning the labeling of beef, in which the country of birth of the animal, the country of rearing and the country of slaughter must be indicated.food chain information must also be available at all stages of the meat's journey, as these health data can be verified by veterinary services,

French and European standards allow meat to be awarded labels, a guarantee of quality and compliance with regulations. Among the most popular labels are AOC, AOP, IGP, Viande Bovine Française, Label Rouge, AFNOR...

Sanitary approvals must be obtained, particularly for industrialists and butchers delivering large quantities of meat, to ensure that the meat is transported under the best possible conditions(***),

The CAP: Common Agricultural Policy, set up in **** to modernize and develop ...

5.2 slaughterhouse regulations

Killing rules are harmonized at European level by EC Regulation n°****/**** of September **, ****. The Commission and the European Parliament thus set minimum requirements for slaughter in Europe. However, each member state can then set more stringent rules. For example, France has chosen to exclude kids and suckling lambs from the poultry regulation, which allows on-farm slaughtering[***]

Below are the main regulations governing slaughterhouses in France:

The slaughter of animals for slaughter (***)[***]

Articles R***-** to R***-** of the French Code rural et de la pêche maritime govern slaughter in France, and cover the transport, housing, immobilization, stunning, slaughter and killing of animals.

Article R***-** stipulates that all precautions must be taken to spare animals any avoidable excitation, pain or suffering during the various stages.

Article R***-** requires animals to be immobilized prior to stunning and killing, and prohibits the suspension of animals before stunning or killing.

Article R***-** stipulates that animals must be stunned before slaughter or killing. Exceptions exist, for example if stunning is not compatible with ritual slaughter. To practice ritual slaughter, slaughterhouses must be able to justify the presence of suitable equipment and duly trained personnel, procedures guaranteeing a rate of slaughter and ...

6. Segmentation

• Bigard groupe
• Elivia
• Sovileg
• Abattoir municipalde Sisteron
• SAB Abattage de la Bressandière Parthenay
• Sicarev
• Couedic Madore
• Quintin Viandes
• Tendriade (Van Drie Group)
• AIVT
• Culture viande Syndicat
• Facomia (Bobet Groupe)
• M.Serra
• Mecanova
• Cooperl Arc Atlantique