The seed and grains market - France (2024)

1.2 The global market

The global seed market was valued at US$**.* billion in ****, and is expected to continue growing at a CAGR of *.*% to reach US$**.* billion in ****.

World seed market World, **** - ****, in billions of USD Source: ****

The sector's growth is driven by the ever-increasing population and, consequently, by the growing need for foodstuffs. Indeed, seeds are the basis of many starchy foods, themselves the mainstay of diets the world over. Countries such as China and India currently account for the greatest demand and consumption. Seeds are also used for animal consumption and by industry, notably the textile industry.

Today, the sector faces a number of challenges. While some major producer countries, such as the United States, favor the development of genetically modified organisms (***), others wish to intensify health regulations concerning seeds. In Europe, the most important issues today are respect for biodiversity, the fight against global warming, and the guarantee of healthy, local products.

1.3 The domestic market

The French seed industry is a very important sector, both nationally and internationally. Indeed, the French market ranks first in Europe, and third worldwide, behind the United States and China. The seeds market has been growing for several years, reaching *.* billion euros in **** - ****. It grew by **.*% between **** - **** and **** - ****, despite a slight decline in **** - ****.

Sales in the seeds sector France, **** - ****, in millions of euros Source: ****

The sector's biggest contributor to sales is corn and sorghum, although straw cereals and protein crops account for the majority of the sector's volume.

Breakdown of sales by seed category France, **** - ****, as % of sales Source: ****

1.4 Balance of trade

France is by far the leading seed producer in Europe. It produces far more than it consumes, and a large proportion of its production is exported, mainly to its European neighbors. In fact, the latter received **% of French exports in ****. The coverage rate (***) is therefore very high. It is generally around ***%.

Trade balance for seeds France, **** - ****, in millions of euros and in % Source: ****

This makes France the world's leading exporter of seeds, ahead of the United States and Germany. In ****, the seeds and seedlings sector will account for **% of the balance of trade in crop and livestock products[***].

2.1 Growing food demand

The world's population has been exploding in recent years. On November *, ****, the world's population reached * billion. On average, the population has grown by *.*% every year since ****.

World population trends World, **** - ****, in billions of people Source: ****

This upward trend is set to continue in the years ahead. Indeed, projections estimate that the world's population will reach *.* billion by **** and almost ** billion by ****[***].

Population growth means that food demand must increase. According to the FAO, food production will have to increase by **% by **** to meet demand. More specifically, demand for grain is increasing by around ** million tonnes a year [***].

2.2 Confidence in farmers drives local demand

Farming is a particularly popular profession in the French imagination. Indeed, although farmers don't always feel the support of the general public, **% of French people have a good opinion of farmers. In fact, farmers rank in the top * of French people's favorite professions, behind firefighters (***).

French people's favorite professions France, ****, in Source: ****

In January ****, **% of French people said they supported the agricultural protest movement, and **% of them felt that farmers were not paid what they should be. Furthermore, the majority of consumers support farmers' demands, such as an increase in state subsidies, easier administrative procedures for farmers, and a better distribution of margins in the agricultural sector in favor of producers[***].

In ****, according to a survey carried out by IPSOS for Lidl, the confidence of the French is based on a number of points. **% of them believe that farmers offer quality agricultural products; **% are convinced that the products on offer respect a good level of health safety, and **% think that they are reliable in the fight against global warming. All these criteria contribute to a high demand for agricultural products; all the more so as the products offered by French farmers are often more appreciated by individuals.

Response to the question ...

2.3 Stakeholders' needs drive farmers' choices

Farmers have to adapt to the needs of the population in order to offer appropriate products. Crops and seeds must meet the needs of French consumers for food, as well as those of producers, distributors and manufacturers.

Semences de France has drawn up a ranking called"Les Préférées Semences de France", bringing together the straw cereal varieties that best meet the expectations of those involved in the sector. The Préférées must meet several criteria:

They are adapted to the region and its specific features. They are economically attractive: high yield and disease resistance. They correspond to the needs of the industry.

Les Préférées include :

In ****, Arvalis-Institut du végétal conducted a survey of **** farmers to determine which straw cereal varieties were the most widespread and used by farmers [***].

Soft wheat: the most widespread sowings are of pure varieties. They account for **.*% of the area planted. However, varietal mixes are becoming increasingly popular, accounting for **.*% of wheat acreage in ****. Chevignon is in first place (***). Durum wheat: sowings of pure varieties account for the vast majority (***).

French consumer habits also influence farmers' choice of seeds. Indeed, **% of French people eat starchy foods regularly. ...

3.1 Seeds and seeds value chain

The seeds and grains market involves many players, who must coordinate their efforts to meet public demand.

Source: ****

The concentration of breeding and production activities has increased steadily in recent years. Indeed, groups and companies with sales in excess of €*** million now account for more than half of the industry's sales (***).

3.2 Very specific professions

Breeders

Breeders, and more generally plant breeding companies, produce first-generation seeds. This research work is carried out both in the fields and greenhouses, and in the laboratory. The business model of these companies is based on research and development. On average, they invest **% of their sales in R&D, compared with an average of *% in France. The ** companies in the sector are divided according to seed type:

Breeders by seed type France, ****, in Source: ****

Farmers - multipliers

Once the first generations of seeds have been supplied by breeders, farmers and propagators cultivate them in their fields. The sector's farmers - propagators are mainly located in the following regions: Center - Pays de Loire, Nord - Bassin Parisien, Sud - Ouest, Méditérannéen, Rhodanien corridor. It is important to note that the number of farmers - multipliers has decreased by *% between **** and ****.

Distribution of farmer-multipliers by seed type France, ****, in Source: ****

Producers

Seed producers are responsible for all stages between harvesting and marketing. They are mainly grouped into cooperatives and traders, and are responsible for ensuring compliance with food safety standards. Seed production is carried out in factories, using a wide range of high-tech equipment.

Breakdown of producers by type ...

3.3 The main players

Industry bodies

SEMAE (***) is theinterprofessional organization for all players in the seed industry. SEMAE's activities revolve around a clearly established raison d'être in ****:"to ensure the availability and supply of quality seeds and plans by adapting to the diverse expectations of farmers, gardeners and consumers in France and in different parts of the world"[***]. Its aim is to promote dialogue and transparency between the industry and consumers, and tosupport the agro-ecological transition to safe, healthy and sustainable food production. Today, over *** professional representatives from ** member organizations and federations sit on the SEMAE board.

The Fédération Nationale des Agriculteurs-Multiplicateurs de Semences(***) was founded in ****, with the aim of promoting seed production in France and defending the interests of seed growers. It represents some **,*** farmers in the industry in dealings with public authorities. The federation's mission is to study the entire seed-growing process, and to propose the most profitable techniques for ensuring quality products. It therefore carries out a wide range of research and studies on the sector.

The Union Française des Semenciers(***) brings together *** companies in the seed sector, from variety creation to production and distribution. Since ****, its mission has been to promote the know-how of companies in ...

4.1 Different types of seeds

There are many varieties of seeds and grains, divided into several categories and sub-categories. These seeds are grown in different ways and do not require the same soil and weather conditions to thrive. For this reason, many farmers grow only one species or variety, adapted to the local climate and conditions. Seeds can be classified in different ways:

Farmers' seeds: these are seeds that adapt easily to their environment and therefore do not deplete the soil too much. They can be harvested and replanted the following year. Improved agricultural seeds have been selected by man through controlled pollination. They are therefore particularly resistant to disease and pests. Hybrid agricultural seeds: these are produced by crossing several pure varieties. They are less sensitive to climate and produce a greater quantity of fruit. Horticultural seeds need plenty of moisture and irrigation. Flower seeds. Edible seeds: these are agricultural seeds produced for immediate consumption (***).

Source: ****

Seeds can also be categorized as follows:

Cereals and protein crops are the most widely grown seeds in France, which ranks first in Europe in terms of cereal production (***). France is also the world's second largest producer and exporter of potatoes, and the European Union's leading producer of vegetable ...

4.2 Seed prices

Seed prices fluctuate widely. In fact, seed production is highly variable from one year to the next, due to the vagaries of the weather; prices are therefore also affected. In recent years, farm-gate prices for seeds and seedlings have experienced several inflationary periods (***). While prices were on a downward trend until ****, they are now on a rather upward trend, but are rather unaffected for the time being. This is due to the general climate of inflation and the conflict in Ukraine.

Agricultural producer price index - seeds and seedlings France, **** - ****, index Source: ****

Nevertheless, since the start of the war in Ukraine,soaring grain and oilseed prices have been a cause for concern for the sector. Indeed, if prices remain high, seed prices will have to rise in order to maintain a certain competitiveness for multiplication areas[***].

Overall, purchase prices for agricultural inputs had been falling until ****, but given the current geopolitical and economic context, they are on the rise again. Only the means of production for vegetable, flower and textile seeds have risen steadily in recent years.

XX XX XX

**** **** **** **** **** **** **** **** **** **** **** Straw cereals *** *** *** *** ** *** *** *** ** *** *** Corn, sorghum and rice *** *** *** *** *** *** *** *** *** *** *** Oilseeds and protein crops *** *** *** *** *** *** *** *** *** *** *** Industrial beets *** *** *** *** *** *** ** *** *** *** *** Vegetables, flowers and textiles ** ** ** ** ** ** *** *** *** *** ***

4.3 Supply trends: organic and nutrition

Organic farming on the up

The development of organic farming in the seed sector is complex, but is becoming increasingly widespread. Even if certain obstacles persist and do not favor this type of cultivation, the R&D departments of companies, as well as the work of breeders, should be able to alleviate these problems. In fact, AB-certified seeds do not benefit from phytosanitary protection against certain seed-borne diseases.

Nevertheless, as in many other sectors, organic is becoming increasingly important for seeds, and is even becoming a necessity. As a result, the area dedicated to organic seed multiplication has increased annually by more than **% since ****. The main French départements involved in organic seed production are Yonne, Cher and Vendée.

The development of the organic market goes hand in hand with seed diversification. In ****, there were *** organic seed varieties for all species combined (***), a figure that has doubled in five years.

Improving nutritional intake: a key challenge

In recent years, consumers have become increasingly demanding when it comes to the nutritional qualities of products. With this in mind, breeders are working hard to create and improve varieties to meet the various needs of the population. Cultivated in Europe since the **s, ...

4.4 Concerns about seed availability

Shrinking farmland

The number of hectares available for seed multiplication in France is declining every year. In the forage and turf sector, acreage has fallen by **% in favor of field crops, and farmers have effectively had to make their own choices. The aforementioned surge in cereal and oilseed prices has prompted farmers to invest in seed cultivation rather than seed multiplication. As a result, the area devoted to seed multiplication has fallen by *%[***].

Added to this is a general drop in production due to drought. In ****, the lack of water particularly affected the maize and sorghum sector, which achieved only ** to **% of forecast production. These dry spells are accompanied by general discouragement in the sector: for example, commitments are down by *% in this sector.

Geopolitical conflicts destabilize the market

The various crises that have affected France and the rest of the world in recent years are likely to seriously destabilize the sector, creating a certain shortage. The Union française des semenciers estimates that these events could lead to tensions over availability as early as ****. Ukraine produces */* of its seeds and imports */*, mainly from France. However, with the start of the conflict, exports to Ukraine were halted, to the detriment of ...

5.1 General seed regulations

Registration of varieties in official catalogs

In order to be marketed, a variety must be registered in the official French catalogs. It is then registered directly at European Union level, in catalogs listing all varieties authorized in the territories concerned. To do this, a variety must be different from those already registered, uniform and stable. These requirements are harmonized at European level (***).

There is a special process for conservation varieties for field crop species. These are locally developed varieties whose genetic heritage is threatened. The technical regulations for evaluating these varieties are available here. In addition, another process is in place for conservation varieties of vegetable species and varieties with no intrinsic value. The two respective regulations are available on the following two links: vegetable species; varieties without intrinsic value.

Protection of new varieties

There is a kind of patent for new plant varieties. When an individual creates a new variety, he or she can apply for a title of ownership. This title, known as a Certificat d'Obtention Végétale (***), prohibits any other individual from producing and marketing the variety in question without the owner's agreement. However, unlike patents, the COV allows breeders to use protected varieties for experimentation, in ...

6.1 Segmentation

On August *, ****, the world's fourth-largest seeds company Vilmorin was delisted from the Paris stock exchange following the success of thesimplified takeover bid launched by its majority shareholder Limagrain in April of that year. The aim of Limagrain, an agricultural cooperative owned by *,*** farmers in central France, was to be able to invest more freely in the seed business, without being subject to the pace of the stock markets. As part of this takeover bid, Vilmorin & Cie was valued at *.** billion euros. And following the takeover, Limagrain well exceeded the **% of voting rights and capital required to delist Vilmorin from the Paris stock exchange.

• Vilmorin (Groupe Limagrain)
• Deleplanque
• Florimond Desprez
• Perles d'Anjou - CAPL (Coopérative agricole des Pays de la Loire)
• Syngenta
• Bayer Crop Science
• Corteva
• Semae
• HM Clause France
• Vandinter Semo
• Vivadour
• Lidea (Euralis)