The fruit and vegetable trade market - France

1.2 Fruit and vegetable production in the world

The FAO reports on the production of fruits and vegetables in the world.

Over the period ****- ****, fruit production increased from *** million tonnes to *** million tonnes, representing a CAGR of *.**%. For vegetables, production was *** million tonnes in **** and also increased to **** million tonnes in ****, with a CAGR of *.*% over the period. More globally, world production of fruit and vegetables reached **** million tonnes in **** and is therefore largely dominated by vegetables.

Evolution of world fresh fruit production World, ****-****, million tonnes CAGR: *.* Source: ****

Evolution of world production of fresh vegetables World, ****-****, million tonnes CAGR: *.* Source: ****

The FAO also reveals the most productive regions of the world in ****. The production of fresh fruits and vegetables is largely dominated by Asia: it alone accounts for **% of fruit production and **% of vegetable production.

[***] World fruit production by region World, ****, million tonnes Source: ****

World vegetable production by region World, ****, million tonnes Source: ****

1.3 Fruit and vegetable traders in France in the global picture

Key figures for the fruit and vegetable market

Iterfel is an organization that brings together the various activities of the fresh fruit and vegetable sector. On its website lesfruitsetlégumesfrais.com, Interfel reports that France is the *ᵉ largest fruit and vegetable producing country in Europe (***).

FranceAgriMer (***) published in May **** the key figures for the fruit and vegetable flilière in ****. The report details, in particular, the evolution of production in value of the different segments of the sector.

Changes in the value of output at basic prices of fruit, vegetables and potatoes France, ****-****, in millions of current euros Source: ****

French production by value is increasing in each of the segments, the most spectacular increase being for potatoes with an average annual growth rate of **.**%. Overall French production by value of fruit and vegetables (***) grew at an average annual rate of *.**% from **** to ****.

According to BusinessFrance, France is the leading exporter of fresh potatoes in the world. Production amounts to * million tons for the domestic market and * million for export (***).

The activity of French traders

The French activities of fruit and vegetable traders are recorded on Insee registered under NAF code **.**Z Wholesale (***) of fruit and vegetables. The evolution of the ...

1.4 Foreign trade in fruit and vegetables

In France, traders work with foreign suppliers but make most of their turnover on the national market. The data of imports and exports of fruits and vegetables in France give nevertheless a good indicator of the main partners for the international trade of the sector.

The UN Comtrade site reports Customs data for the HS nomenclature. In this international nomenclature, vegetables are recorded under code ** and fruits under code **. The site allows to establish the French trade balance for fruits and vegetables.

Trade balance in fruit and vegetables France, ****-****, in billion US $ Source: ****

The French coverage rate for fruit and vegetable trade has been relatively stable for the past * years. France is mainly an importer of fruit and vegetables but also exports a lot.

The database also reveals France's main partners.

Main customer countries for French fruit and vegetables France, ****, in % Others: Portugal, Poland, Czech Republic, Luxembourg, Sweden, etc. Source: ****

Spain is the country that imports the most French fruit and vegetables, followed closely by Germany and Belgium. It is interesting to note that the overwhelming majority of French exports are to European countries. Intra-community trade is crucial for the sector and the single market makes it possible to stabilize ...

2.1 Household consumption of fruit and vegetables in France

Household consumption in value and volume terms

In the key figures for the fruit and vegetable sector in ****, the establishment details the evolution of household consumption in volume and value for fruit and vegetables. Some of these data can be updated with the help of another FranceAgriMer report published in **** on French households' purchases of fresh fruit and vegetables in ****.

Changes in household purchases of fruit, vegetables and potatoes by volume France, ****-****, in % Source : Les chiffres clés de la filière Fruits et Légumes - FranceAgriMer Fruit consumption in volume **** : -*,* %Vegetable consumption in volume ****: +*.*% Source : FranceAgriMer - Les achats de fruits et légumes frais  

Changes in the value of household purchases of fruit, vegetables and potatoes France, ****-****, in % Source: ****

Quantities consumed by households are therefore relatively stable, while expenditure is increasing. This can be explained by an increase in the prices of certain products, but also by the consumption of products with higher added value, such as organic products.

The FranceAgriMer report on household purchases of fresh fruit and vegetables confirms the trend observed in the above graphs.

Source: ****

As a result, the market is recording a decline in consumption in volume terms, with consumption ...

2.2 The distribution channels most favoured by households

The popularity of the different distribution channels is of great importance for fruit and vegetable traders. Indeed, the distribution channels are the customers of the traders, and the popularity of the channels influences the wholesale purchase volumes which influence the (***) purchase price and thus directly the turnover of the traders.

Breakdown of household purchases by volume in the main distribution channels France, **** as % of total Source: ****

Breakdown by value of household purchases in the main distribution channels France, ****, in % Source: ****

Hypermarkets are the main place of distribution of fruit and vegetables in France, with **% of the market in volume and **% in value. The ranking in value is relatively similar to that in volume.

The market share of the Greengrocers in value is greater than that in volume, this is explained by the fact that the prices of the Greengrocers are higher than those of the GSA. The wholesale trade is influenced by this distribution.

Developments in ****

The evolution of these distributions over the year **** is reported in FranceAgriMer - Les achats de fruits et légumes frais (***). Overall, the breakdown has changed very little. Hypermarkets recorded a *.*% market share, while markets saw a slight *.*% rebound after several years of decline. The ...

2.3 The organic market in full expansion

Trends in the fruit and vegetable market have a direct impact on the activity of traders. The demand for organic produce is growing and fruit and vegetable wholesalers must take this dynamic into account. This part is extracted from a Businesscoot study on the organic fruit and vegetable sector in France, available here.

The French Agency for the Development and Promotion of Organic Agriculture (***) of * July ****, it reports the market figures up to **** and testifies to the solid growth that the market has been recording for several years.

The organic food market France, **** - ****, in billion euros Source: ****

Within the organic food market, the market share of organic fruit and vegetables is **.**%. This is the second largest market behind groceries (***). The file therefore reports a market size for organic fruit and vegetables of *.*** billion in ****.

Similarly, the area of land cultivated and managed organically continues to increase in France with a CAGR over the period **** - **** of **.*%.

Agricultural area under organic management France, ****-****, in millions of hectares Source: ****

In ****, this estimated area corresponded to *.*% of the agricultural area used in France. The data in the press kit allows us to estimate the area dedicated solely to fruit and vegetables (***).

Thus, ...

2.4 Consumer confidence in products and farmers

FranceAgriMer published the **** barometer of French confidence in fruit and vegetables in ****. The year **** resulted in an increase in French confidence in fruit and vegetables with * points for each category, raising the percentage of French people who have confidence in vegetables (***). Confidence in farmers has increased by * points to **%.

The primary source of concern nevertheless remains the same. **% of French people say they are very worried about the use of pesticides despite a *-point drop compared to ****. Finally, the barometer reports the main determining factors in the purchase.

Fruit and vegetable purchasing factors France, ****, in % Source: ****

Seasonality and the origin of the product are what matters most to buyers in ****. In this regard, they seek information from consumer associations (***). [***]

3.1 Traders: a key element in the value chain of the industry

Producers have two ways of selling their production:

Direct sales: on markets, to specialised shops, to processors in the food industry and to local supermarkets; The sale in short circuit (***): via the cooperatives and the forwarding companies which gather the productions of several farmers to obtain the best price with the traders, and the central purchasing offices.

In reality the diagram is more complex and the Large surfaces sometimes call directly upon the traders, without passing by their central of purchases. Moreover, certain central purchasing offices obtain their supplies from traders.

Nevertheless, the overall pattern can be summarised as follows. A first marketing is carried out by the forwarding companies and the SICA cooperatives, which gather the productions of various farmers. These operators then resell the goods to wholesalers and central buying offices (***).

Finally, the wholesalers sell their goods to retailers (***), to the central purchasing offices of the supermarket and hypermarket chains, and to the catering industry. [***]

3.2 Overview of the wholesale business in France

Traders in France

The ACOSS database makes it possible to observe the evolution of the number of companies and employees registered under the NAF **.**Z code on the French territory.

Changes in the number of enterprises and employees under NAF code **.**Z (***) France, **** - ****, in units Source: ****

The number of companies registered each year under the NAF code for fruit and vegetable traders is relatively stable in France. The good health of the sector is then reflected in the number of jobs. The latter has been on the rise since ****, and reached a record of **,*** employees in ****.

Wholesalers on the territory

The ACOSS database also allows us to observe the distribution of these actors by region. The activity of trader is a very local activity, since they are in direct relation with the producers or the associations of producers.

Geographical distribution of wholesalers of fruit and vegetablesFrance, ****, in number of companies

Wholesale activities are distributed throughout the country according to two criteria. The first is proximity to producers, as can be seen in the southern regions of France, where there are many fruit and vegetable producers. The second criterion is demand, and demand is linked to population. This explains the number ...

3.3 Traders in the distribution diagram: the distribution of value

On a regular basis, CTIFL produces a balance sheet diagram that shows the distribution in the fruit and vegetable sector. The latest edition is for ****. The chart below is taken from this diagram and details the main suppliers to wholesalers by value of goods purchased:

Distribution of traders' supply purchases* by fruit and vegetable suppliers France, ****, in % *purchases in value Source: ****

It is interesting to note that the distribution between French and foreign producers is equitable, since **% of the goods purchased by French wholesalers come from abroad (***).

The diagram also shows the distribution of sales in value of the traders to the different distribution channels. According to their distribution mode, two main types of wholesalers can be distinguished, each accounting for almost **% of the activity:

Wholesalers on the floor: are characterized by the sale by mutual agreement (***) on the wholesale market; Full service wholesalers: provide delivery to the customer and possibly strategic advice.

Distribution of sales in value of traders (***) to distribution channels France, ****, in % Source: ****

It is therefore the mass retail sector that accounts for the majority of wholesalers' goods, with almost **% of the latter. However, the out-of-home catering industry has a significant share of purchases, accounting for *.*% of the ...

4.1 Traders: a guarantee of reliability and traceability

Quality rewarded by certifications

The role of traders in the sector is increasingly highlighted by consumers. Indeed, the latter are looking for transparency and legibility regarding the products they buy. For many, it is now crucial to be able to be informed about the origin of the products and the different stages that brought these products to them. The mission of wholesalers is therefore centred on this quality aspect: they must respect the procedures of traceability and preservation of fruit and vegetables in optimal conservation and hygiene conditions. The activity is therefore often a guarantee of specialised expertise in products and logistics.

The offer of the wholesalers is therefore distinguished by the certifications, (***) below:

ISO ****; Ecocert ; FeL PARTNERSHIP ; CO* target.

The consulting function: at the heart of the offer's differentiation

The wholesaler can offer his expertise to his customers. His good knowledge of the sector, combined with his logistical skills, enable him to analyse his customers' needs very precisely and to put in place the best strategy to meet them. The wholesaler acts as an analyst and can differentiate himself by his ability to decide for his client.

In this regard, the Ponoma market leader and traditional fruit and vegetable wholesaler ...

4.2 Wholesale markets in France

France has ** wholesale markets: Angers, Lille, Rouen, Rungis, Rennes, Nantes, Tours, Bordeaux, Agen, Toulouse, Montpellier, Perpignan, Marseille, Cavaillon, Chateaurenard, Avignon, Nice, Grenoble, Lyon and Strasbourg.

The role of the wholesale markets is to organise the supply of fresh products to independent traders. They are essential partners of the out-of-home catering industry, but also of mass distribution.

The real comparative advantage of wholesale markets is the great flexibility in supply from which the independents benefit, they can indeed select products that are qualitatively and quantitatively adapted to their needs. The concentration of operators in one place benefits competition and transparency, but above all, local trade. These advantages are added to an efficient network of the territory, so that the demand can easily meet the offer.

Fresh fruit and vegetables are sold on all the wholesale markets in France. The *** wholesalers and the *,*** producers have a total of ***,*** m² and market approximately *.* million tonnes of fresh fruit and vegetables per year, which represents more than **% of the quantities consumed in France. [***]

Average prices on the Rungis market France, July ****, in Euro

Source: ****

4.3 PESTEL - SWOT - and Porter's Forces

Pestel analysis of fruit and vegetable traders' activities in France

The SWOT matrix of the sector

Porter's strengths of the business

5.1 General regulations

The traditional regulatory framework for fruit and vegetable trading activities

Decree **.**** of **/**/**** sets out the health rules for fruit and vegetables. They must be: of sound quality, clean, whole and must have reached a sufficient degree of development and ripeness; Decree n°**-**** of **/**/**** modified by decree n°**-*** of **/**/****: The treatment products used must be indicated on the package and on the slate for citrus and post-harvest treated products; Order of December *, ****: Prices are freely determined, but their display is strictly regulated;

The professional is obliged to ensure that the weighing equipment is accurate and well maintained. Every two years, approved bodies carry out checks.

The law on the modernisation of the economy (***).

The Egalim law for the balance of commercial relations in the agricultural sector

The egalim law aims to restore the balance of commercial relations between producers and large-scale distribution, but also to make healthy and sustainable food accessible to all consumers. This law has been enacted since October ****.

The opportunities lie in particular in catering activities: school and university catering services, catering services in establishments for children under six years of age, health establishments, social and medico-social establishments and prison establishments for which they are responsible must ...

5.2 The quality approach

The UNCGFL's requirements

THE UNCGFL, Union nationale du commerce de gros de fruits et légumes (***), is responsible for carrying out audits of fruit and vegetable trading activities. It initiates, sometimes in partnership with other professional organisations, differentiation approaches for fruit and vegetable wholesale companies.

Charter of professionalism: This is a text that defines all the commitments and good practices for the exercise of the profession of fruit and vegetable wholesaler. The respect of these commitments, controlled by a third party, guarantees the professionalism of this activity in phase with the regulations in force and the expectations of the upstream and downstream partners; Fel'excellence is a label of differentiation for fruit and vegetable wholesalers. Its role is to formalise a real commitment to the sector over time. It is the mark of a professionalism and a high degree of requirement that each one sets himself in the exercise of his trade; Fel'engagement This is a self-checking agreement that covers the approval of fruit and vegetables at the wholesale stage; Fel'partenariat : it is a self-checking agreement for the inter-company trade of fruit and vegetables concerning the quality, hygiene and safety of food.

Source: ****

The HVE (***) standard

The environmental certification of farms allows ...

6.1 Segmentation

Source: ****

• Pomona Groupe
• Grand Frais (Prosol)
• Compagnie fruitière Paris
• La fraicherie
• Les Crudettes - LSDH Groupe
• Charlet Groupe
• So Fruce
• Agrial Coopérative Primeal
• Florette (Agrial)
• Lou Légumes
• Bonduelle Groupe
• Vergers Cancel
• Priméale Agrial
• d'aucy
• Provenceprim
• Idyl
• Jardins du Roussillon
• Solagora
• Terrango
• Maison Colibri (Groupe Roullier)
• Perle du Nord
• Le Saint Réseau
• Saint Charles International-
• MIN de Rungis - Semmaris
• NectarGo