The hay market - France

1.2 The global hay market

We have no data on the global hay market. It is therefore appropriate to look at the global alfalfa hay market to get an idea of the scale of the hay market.

After a downturn caused by the pandemic in ****, with a *.*% contraction in the sector's sales, the market will return to pre-crisis levels.

In ****, the global alfalfa hay market is estimated at $**.* billion, rising to $**.* billion by ****, with an annual growth rate of *.*% over the period ****-****.

alfalfa hay market trends World, ****-*****, in US$ billions Source: ****

The main segment addressed is livestock, which accounts for **.*% of market share.

1.3 A shrinking national market in the face of changes in agricultural activity

AGRESTE data for **** show a production of all types of forage and silage of ***,***,*** quintals (***):

Source: ****

The average value of a ton of hay is *** euros in **** (***).

We would need to estimate the rate of self-consumption of hay by producers , since it is primarily used to feed livestock outside the grazing period.

AGRESTE data for **** describe forage production of all types, with hay production valued at *.** billion euros.

The CAP's negative impact on forage production in France

The European Union's Common Agricultural Policy has had a negative effect on forage, according to a **** document available on the AGRESTE website. According to this document, around ****, the CAP led to a reversal in the expansion of forage acreage, to the benefit of field crops throughout the country. In ****, **% of the Utilised Agricultural Area was used for forage or STH, but the European Union introduced a guaranteed price system (***). This system replaced the insurance provided by hay in the event of soaring feed prices or famine. As a result, crop production for sale has multiplied.

1.4 Hay market trade balance

To understand international trade in hay, UN Comtrade data should be analyzed using the following code:

******** - Hay, alfalfa, clover, sainfoin, forage kale, lupin, vetches and similar forage products (***)

French trade balance for the hay market France, ****-****, in millions of US$ and as a % of sales Source: ****

France is a net exporter of forage products, ranking seventh in terms of value. However, its coverage rate has been on a downward trend since ****.

France's main customer countries France, ****, as a share of total value Source: ****

France exports mainly to its neighboring countries. Switzerland accounts for **.*% of French exports by value. Germany and Belgium follow.

France's main supplier countries France, ****, as a share of total value Source: ****

Similarly, France's main supplier countries are its neighbors. The Netherlands and Spain account for **.*% of French imports. They are followed by Belgium, Germany and Italy.

2.1 An almost unique demand: the livestock sector

The vast majority of hay is sold to herbivore breeders as animal feed. The hay market is therefore highly dependent on the level of livestock farming in France and the composition of the herd.

Hay is chosen for its nutritional properties and quality.

Horse breeding

Growth in the number of horses France, **** - ****, in millions Source: ****

The number of equidae in France is relatively stable, with an average of *.** million horses on French territory between **** and ****.

An adult horse consumes around *.* kg of dry matter per *** kg of body weight. The proportion of concentrates in this intake rises from **% for a horse that does little or no work (***) to **% for a top-level competition horse. The absolute minimum is * kg of hay per *** kg of body weight.

Cattle breeding

France is Europe's leading cattle producer (***) behind Germany.

French cattle population in thousands of head France, ****-****, in thousands of head Source: ****

Sheep farming

Hay plays an important role in sheep diets. In winter, their ration should include *.* to * kg of hay per sheep per day. From spring to autumn, however, sheep flocks are satisfied by grazing natural meadows to feed themselves.however, if there is a shortage of grass at the beginning ...

2.2 Strong cyclical impacts on hay and related markets

Decline in meat consumption

Total meat consumption in France over the last 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 little, beef and veal consumption is declining much more sharply: between **** and ****, beef and veal consumption will have fallen 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 (***)

This decline in meat consumption is set to continue over the next few years. an IFOP survey carried out at the end of **** shows that the proportion of French people "ready to reduce their consumption of animal proteins by choosing to eat less meat and fish, and by giving preference to meat and fish products of better environmental and taste ...

2.3 Other possible uses for hay.

Hay in the diet of rabbits and pet rodents

A must-have food for rabbits and rodents, hay is tasty, rich in fiber and provides optimum wear for their teeth.

Hay can also be used as mulch, particularly in permaculture

Mulching is a technique that consists in covering the soil around plants and other cultivated vegetation with mulch (***) to nourish and/or protect them.

Advantages of hay mulching :

economical easy to install self-sufficient: no need for inputs, retains moisture well, decomposes without mildew morenutrient-rich than straw reduces erosion

Disadvantages of hay mulching:

encourages weed growth not aesthetically pleasing not necessarily organic

Hay as a culinary ingredient

A small outlet, culinary hay is becoming increasingly popular. Cooking with hay is becoming more and more widespread, and can be used tocook poultry, roasts or even cheeses in casseroles. Crau hay , locatedin Provence and the only AOC hay in France, is renowned for this use.

Hay for smoking is available on the market.

The websiteLa France Agricolereports on the initiative of four livestock farmers in the Orne region who package hay in ***g packs for cooking. Hay is used in particular for cooking poultry and oven roasts. The price of hay per ton is valued ...

3.1 The main stages in making hay

To produce hay, the grass has to go through, according to equipedia.ifce.frseveral important stages :

mowing the grass to a height of * to * cm ; tedding, which consists in turning the grass over so that it dries evenly; windrowing, to finish drying the hay and gather it together; baling, once the hay has reached over **% baling.

Hay can then be bought and sold through a variety of channels (***) :

local purchases; internet: sites dedicated to agricultural products such as annonces-pleinchamp. com or agriaffaires.com; specialized marketplaces such as La Balle Ronde.

Hay also passes through various types of producers, each with their own specific characteristics:

The intermediary wholesaler, a trader who often charges uncompetitive prices (***) but who can sell hay all year round. The specialist foragegrower, who sells high quality, high value-added forage. They tend to export their production. The mixed crop-livestock farmer, who produces hay of more modest quality and sells surplus production.

Equipedia.ifce.fr details hay production costs. In the example used (***), the cost of harvesting is €*,***, or €***/ha.

Source: ****

3.2 Market players and French production

Producers: they use merchants to handle the sale and distribution of their hay. However, they may wish to sell their production themselves (***), and use brokers or transporters directly to sell the product.

Merchants : they act as a link between producers and wholesalers, or directly with end customers (***).

Carriers : they are in contact with either the merchant or the producer and the end customer.

Agents : they may be mandated by groups (***) to buy and sell hay.

Brokers : they are hired by a customer to find a product, contact the producer, and have it delivered to the end customer.

Wholesalers : supply large customers or retailers.

Retailers : stores where hay is sold directly to customers, who take care of transport themselves.

Production of annual forage, non-permanent grassland and STH

evolution of forage production, non-permanent grassland and STH France, ****-****, in Source: ****

French production of forages, non-permanent grassland and STH has stabilized at around ** quintals/ha since ****.

3.3 Adapting the hay market to short-distance distribution trends

La Coordination Agrobiologique (***) has published a guide dedicated to the exchange of fodder in short circuits in order to reinforce the autonomy of organic farms. Indeed, the reduced use of chemical inputs opens the door to greater vulnerability to the vagaries of weather and disease.establishing a local fodder market provides flexibility and greater assurance in the face of fluctuating feed prices and difficulties in adding value to fodder.

Online sales of hay and fernsLa Balle Rondeonline hay and fern sales site, for example, offers the option of choosing "Foin Naturel" and "Bio" in its search tool. This shows that a player such as this, which is only a sales platform, takes these new trends into account.

4.1 Plural hays

Hay is a forage made from grass that has been mowed and then dried in the open air and sun for several days, to reduce its moisture content from **% to less than **% as quickly as possible, with a view to dry preservation. This forage is thus characterized by a high dry matter (***) content, close to **%, the threshold above which micro-organisms and molds, harmful to the horse's health, can no longer develop.

Hay fed to horses is often mown from natural meadows containing a mixture of grasses (***) in varying proportions.Hay can also be harvested from meadows sown with one or more plant species, combining grasses and/or forage legumes. The most commonly sown grass species are English ryegrass, hybrid ryegrass, cocksfoot, timothy, fescue and bromegrass. The most widely grown legumes are white clover, red clover and alfalfa.

Hay can also be harvested from meadows sown with one or more plant species, combining grasses and/or forage legumes. The most commonly sown grass species are English ryegrass, hybrid ryegrass, cocksfoot, timothy, fescue and bromegrass. The most widely grown legumes are white clover, red clover and alfalfa.

Diversification is also taking place in terms of hay.

We find RGI hay (***), for example. As ...

4.2 Different prices for different types of hay

The Round Ball provides information on the characteristics that influence the price of hay:

It depends on the type of hay: the price of natural meadow hay(***). It depends on packaging: hay packaged in small rectangular bales is much more expensive than hay packaged in large round bales, due to the cost of packaging. It depends on transport : this cost item is very important for forage in general and hay in particular. It can vary from €*.* to €*.* per kilometer. It depends on the purchase period: of course, if supply is low and demand high, prices will rise.

4.3 Organic hay, a new supply trend

Demand for organic hay

The market for organically grown hay does exist in France. given the growing consumer demand for organic products, it's safe to assume that the market is booming. Many dairy farmers are going organic, which increases demand for organic hay, and the rest of the demand comes from riding schools looking to feed their horses the best quality hay possible.

Trading volume in France

On the other hand, it is rather difficult to access precise data on this market in terms of volume and exchanges carried out.

As for the regions with the highest demand for organic hay, we can logically deduce that they are located in the northern half of the country, whereas organic crops are mainly grown in the south. Fodder crops (***) account for more than **% of organic acreage, with *.** million hectares.

Organic hay prices

Finally, the price per tonne of organic hay varies according to the supply in each season. To give you an idea, here are a few prices from sellers on our Laballeronde platform, observed in April ****.

***€/T organic alfalfa and meadow hay harvest **** ***€/T organic hay **** **€/bale organic natural meadow hay **** (***) i.e. ***€/T

note that organic production costs are lower, ...

5.1 Major European legislation

The Common Agricultural Policy plays a major role in the agricultural organization of European countries, including France. Created in **** as part of the Treaty of Rome, it set out the operating rules for market organizations as early as ****. The Common Market Organizations, discussed in the first part of this study, were set up between **** and ****.

In ****, agricultural subsidies were redirected from price support to income support , and the payment of subsidies was made conditional on the set-aside of a portion of the area intended for cereals, oilseeds and protein crops. Nevertheless, the area under arable crops continues to grow, while that under grassland continues to shrink.

According to terre-net.frcurrent (***) CAP subsidies are organized into * pillars. The first is financed by the CAP, while the second is co-financed by the Member States and the CAP. only ***.* million euros are earmarked for crop production, for total aid to France of around * billion euros. Of these ***.* million euros, **.** million euros are earmarked for forage legumes of all types. Seed production aid for forage legumes amounts to *.** million euros. Aid for protein crops amounts to **.** million euros.

5.2 Hay milk, a way of upgrading hay into cattle feed

The STG (***) label certifies a GMO-free diet, composed of **% grass and hay. This label, according to agriculture.gouv.frhas been available in France since March ****. The total absence of fermented products in livestock feed ensures high quality milk or cheese, for example. In this way, the label promotes the use of hay to feed livestock. If extended, it could lead to a resurgence in the use of hay, which is currently on the decline in the face of diversification in livestock feed.

6.1 Segmentation

• Gilles Baudot
• Le Merinos GAEC
• Hay France
• Fourrages Girerd
• Dié Ets
• MB Diffusion Agriaffaires
• Pleinchamp
• La Balle Ronde