The cherry market - France

1.2 Key figures for the global market

According to Stratistics MRC, the global fresh cherry market is worth $**.** billion in **** and is expected to reach $***.** billion by ****. Some of the key factors propelling market growth are the increasing use of cherries in ice creams, jellies, salads, dairy drinks and alcoholic beverages around the world. Rising disposable incomes, population growth and a growing consumer preference for fresh fruit and vegetables are also factors to be taken into account. However, the various climatic phenomena that are becoming more and more recurrent can affect the production of this commodity, which could be a brake on the growth of the world cherry market. World production of fresh cherries has increased considerably over the last ten years, rising from * million tonnes in the ****/**** season to * million tonnes in the ****/**** season, according to the USDA. This represents a substantial increase of over **% in a decade. The European Union has lost its leading position over this decade, with a **% drop in production, to the benefit of Turkey, which has become the world's leading cherry producer. China, meanwhile, is set to overtake the EU with an increase in production of around **,*** tonnes a year. At the same time,according to the World Bank, the world's population ...

1.3 Key figures for the domestic market

The French cherry market is set for a full recovery in ****, after a difficult year in **** due to frost waves that hampered production and led to a one-third drop in sales compared to the average between **** and **** (***). With an average retail price of €*.**/kg, this gives a price of €*,***.**/t. Knowing that the market forecasts a production of **,*** tons of cherries this year, we can perform the following calculation to obtain its size in value: *,***.** x **,*** = €***,***,***. The French cherry market should therefore generate sales of around €***,***,*** in ****.Cherries produced in France account for **% of the supply on the French market. However, despite a majority presence on the French market, the share of French cherries on the market has been declining over the last ten years, with a drop of ** percentage points over the same period.

Cherry market France, **** franceagrimer

This graph shows a fairly stable trend in the quantity of cherries available on the French market. Despite some exports, France still has a negative foreign trade balance for cherries, and is obliged to import in order to maintain sufficient stocks.

1.4 Foreign trade in French cherries

Like French cherry production is not the most developed in the world, nor in the European Union. This graph is more than explicit. France's external balance on the cherry market is consistently negative between **** and ****, with a coverage rate averaging **.**% over the same period.

Foreign trade in cherries France, ****-**** Finances.gouv. The trend in France's foreign trade balance for pome fruits and stone fruits has been slightly positive over the last two years. However, it was negative in ****, which must be the result of a catastrophic year in terms of harvests, particularly of cherries, due to frost. We also note that in the first four months of **** and ****, the foreign trade balance for pome and stone fruit is positive. Given the trend observed in the previous graph and the cherry harvest period (***), we can deduce that cherries are exerting downward pressure on the foreign trade balance for stone and pome fruit. However, a better balance can be expected this year, given the forecast cherry harvest of **,*** tonnes. Main cherry-supplying countries France, **** According to conference by Matthieur Serrurier, CTIFL, via success Main countries importing French cherries France, **** Conference by Matthieu Serrurier, CTIFL, via Réussir

2.1 Demand and its determinants

Cherries, a companion product

According to a Top Santé magazine ranking carried out in January ****, cherries were France's *th favorite fruit. Women and the elderly respond particularly positively to this type of product(***).

Demand for fresh cherries in France averages ***g per person per year(***). In all cases, the cherry market is essentially a B*C market, although the number of intermediaries is greater in the case of processing.

Different types of consumer

Average household purchase volume index by age of buyer France, average ****-**** Source: ****

Average household purchasing volume index by region France, average ****-**** Source: memento These two graphs show us two main trends in cherry consumption in France. The first is clear from the first chart: in France, the older we get, the more cherries we consume. The second is a little less clear-cut, but shows that three regions dominate cherry consumption: the Paris region, the South-East and the Centre-East of France . These regions are densely populated, and on average have a higher standard of living than the rest of France.

2.2 Demand cyclicality

Consumption of raw cherries is highly seasonal, occurring mainly in summer. Cherry consumption by French households is concentrated over a *-month period (***), which accounts for the overwhelming majority of volumes purchased. This is essentially due to the fact that cherry production is concentrated during this period, which has the effect of driving down prices compared with the rest of the year.

Breakdown of household cherry purchasing volume France, average ****-**** Source: ****

Breakdown of cherry sales over the year. France, average ****-**** Source: Memento These two graphs highlight the densification of cherry production and imports over the year between May and August. We can therefore imagine that the entire demand for cherries by the population is concentrated between these four months. The second graph clearly shows that cherries are only sold during this period, whether imported or home-grown. Even if it seems obvious that there is some off-season consumption, however small, this is extremely limited in view of the price and preservation difficulties of imported cherries. The price of out-of-season cherries averages €**/kg.

2.3 Demand trends

The demand for this fruit can be explained by its gustatory and nutritional qualities. Cherries are a good source of energy, and contain antioxidants and active agents that can help prevent type * diabetes and other diseases (***) and regulate the digestive system.

Cherries are a seasonal fruit that can be substituted for other fruits the rest of the year. Apples are a perfect substitute for cherries in the off-season (***).

Demand for local rather than organic produce

First of all, it's important to remember that organic and local are not mutually exclusive. It's perfectly possible to eat organic food produced close to home. However, by ****, consumers will be more inclined to buy local than organic. A study by IRI (***).

Despite inflation and the post-sanitary crisis context, the French aren't afraid to eat fruitAccording to a Franceagrimer survey, nearly */* of French people are aware that the price of fruit and vegetables is rising.ais are aware that fruit and vegetable prices have risen significantly, yet only *% of them are thinking of reducing this expense first. As for health issues linked to the use of pesticides, fear is decreasing, with concern falling from **% in **** to **% in ****.

3.1 Industry forces and organization

Producers

The market for cherry growers is fragmented into smallholders. Many growers operate family estates. Some growers are grouped together in agricultural cooperatives. Barriers to entry are low, which explains the sector's high level of competition.

There are a large number of cherry growers seeking to expand geographically and by offering new products.

Specificity of production

Cherries are a vulnerable foodstuff. They can be kept for up to ten days in a cool place. Growing cherries means taking precautions to protect the fruit from the vagaries of the weather (***) and from insects and disease.

Excessive rain can damage the quality of the cherries: the flesh will be waterlogged and split easily, and the taste will be less intense and less sweet. Certain measures can protect cherries, such as the use of natural pesticides. Rain, insect and hail blankets can also be used to protect trees. However, these are not necessarily sufficient, as demonstrated by the disastrous consequences of frost on harvests in ****.

Harvested area and yield of cherry crops France, ****-**** FranceAgrimer

This graph shows that the trend is slightly upwards for yield per hectare. Even if there are no real yield data for ****, we can imagine a drop in yield ...

3.2 Industrial use of cherries

As mentioned above, **% of French cherry production is destined for industrial processing. However, data is only available for Bigarreau cherries, which are the most widely used for processing. Cherry processing is mainly focused on candied cherries, cherries in syrup and cakes. The Bigareau cherry industry in France is responsible for *** direct jobs at four processing plants. Three companies share the activity, generating sales of €**,***K in ****, down *% on ****(***).

Harvesting Bigarreau cherries and making candied cherries from them France, ****-**** FranceAgrimer

as this graph shows, the production of candied cherries is strongly correlated with the level of Bigarreau cherry harvests. Industrial activity is therefore conditioned by the level of harvests each year.

4.1 Products

The different varietiesCoteaux du Ventoux cherry Protected Geographical Indication (***)This cherry variety is unique in that it benefits from a European distinction, the PGI, because it belongs to the Coteaux du Ventoux region. Produced by ** growers on Mont Ventoux in Provence-Alpes Côte-d'Azur, it is harvested exclusively by hand.

Bigarreau

This is the best-known and most widely consumed variety in France. It is often used to make candied cherries, syrups, etc. There are several sub-varieties of bigarreau, such as burlat, reverchon and many others. This fragile variety is highly sensitive to bad weather. In view of its fragility, it needs to reach the market as soon as possible after harvesting, with the aim of waiting no more than ** hours.

The Montmorency orchard cherry

The Montmorency cherry is produced mainly in the Île-de-France region. It is much sought-after for preserves and jams. It is a very old variety that has been forced over time to reduce its production in the face of competition from the Bigarreau cherry.

Monts de Venasque cherry

This variety is considered a "luxury" cherry. It is grown in Vaucluse, France's leading cherry-growing department. It is a very sweet, fragrant cherry.

Itxassou black cherry

Originally from the Basque Country, ...

4.2 Production costs

The main production costs for cherries are harvesting, irrigation and pruning. In recent years, many growers have invested in mechanized fruit processing (***) and packaging. The biggest cost, however, remains labor. Picking is generally done by hand at a rate of **kg/hour, followed by sorting, which is estimated at €*/kg, so labor costs account for **% of average production costs. Harvesting one hectare by hand requires an average of *,*** hours of work.In addition, an orchard must be maintained throughout the rest of the year to ensure optimum production during the picking season. The equivalent of one full-time worker is needed for *.*ha of orchard.

Organic cherries are even more special. As they use no pesticides or chemicals, labor costs are higher.

4.3 Sales prices

The following product prices are wholesale prices (***).

On average, Belgian cherries are the least expensive. However, these are only found on the Lyon-Corbas market. The cheapest cherry per kg is sold at €*.**/kg ex-VAT, and is also found on the Lyon-Corbas market. The most expensive cherry is, unsurprisingly, organically grown. It is sold at *.**€/kg ex-VAT. It should be noted that the price varies according to the "size" of the cherry, which varies between +**mm and +**mm.

The products are then sold by retail and in week ** (***). The price per kilo of these cherries is much higher, ranging from €**/kg to €**/kg, with an average price of around €**/kg.

4.4 Cherry price trends

cherry price trend in € incl. VAT/kg France, ****-**** FranceAgrimer

In view of this graph,prices for **** are very slightly below the five-year average prior to ****. We can also see that climatic risks are not to be taken lightly; they have generated an increase of around **% in cherry prices in **** . These prices are not, however, representative of cherry prices all year round, since they are those for the **th week of each year, which is counted as one of the year's lowest.

5.1 List of current regulations

The Clause de Sauvegarde de l'Agriculture set up by the Ministry of Agriculture in ****, renewed in ****, protects French producers against distortions of competition and safeguards consumers against the risk of dimethoate residues. This clause prohibits the import of cherries from countries where dimethoate is authorized.(***)

The EGALIM * law (***)

The French Rural and Fisheries Code defines collective sales outlets for agriculture: "Art. L. ***-*. - local agricultural producers may join together in producers' stores to market their products to consumers as part of an organized short circuit. They may only offer products from their own production, whether raw or processed. These products must represent at least **% of the outlet's total sales. For processed or unprocessed products not produced by the group, producers may only obtain supplies directly from other farmers, including those organized into cooperatives, or from food artisans, and must clearly display the identity of the latter and the origin of the product."The agriculture and food law (***)

5.2 Upcoming regulations

On May **, ****, European regulations reduced the maximum residue limits for dimethoate in cherries to zero. This new regulation is due to come into force on December **, ****. This poses many problems for farmers who fear a devastating fly that has recently arrived in Europe: the Drosophila suzukii fly.A new law was enacted on March *, **** and will come into force on January *, ****. It covers the insurance of farmers against the various climatic risks they face , which are increasing with climate change. The aim of this law is to increase the number of insured farmers, who are currently very few in number.

5.3 Existing labels can help guide consumer choices

Label Rouge: The Label Rouge is a national label designating products which, due to their production or manufacturing conditions, have a higher level of qualityÌ than other similar products usually marketed.

Appellation d'Origine Protégée (***): the product says where it comes from: its name is that of a place emblematic of its territory of origin.

The Protected Geographical Indication (***), on the other hand, testifies to a universe and consecrates a know-how rooted in a territory. The stages in its production that give it its specificity are carried out in its territory and described precisely in a set of specifications.

Traditional Speciality Guaranteed (***) certifies that a food product has been produced according to a traditional production method, recipe or composition.

Organic Farming: Products identified by the Organic Farming logo guarantee that they have been produced in an environmentally-friendly way, ensuring a high level of animal welfare and promoting local resources. They exclude the use of GMOs and synthetic chemicals.

6.1 Segmentation

Growers and market gardeners :

SCA Covial Sicoly AMS European Chambe Agri Fruits Val de Nesque Monts de Venasque Cueillettes des chapeaux de paille COPEBI Domaine le Monestier International Plant Selection Les Vergers de Champlain

Products and services related to the cherry industry :

Maf Roda Fachaux et fils

• Covial Uni Vert
• Sicoly
• AMS European
• Chambe Agri Fruits
• Val de Nesque
• Monts de Venasque
• Cueillettes des chapeaux de paille
• COPEBI
• Domaine le Monestier
• International Plant Selection
• Les Vergers de Champlain
• MAF Roda (Agrorobotic Groupe)
• Fachaux et Fils