Sector

Cow milk

FranceAgriMer : Fact sheets

Sector

INDUSTRY STRUCTURE

PRODUCTION

PROCESSING

SALES

key statistic:

24.6 million tonnes of milk collected in 20162nd largest European producerTrade balance +€3.4bn

> Milk

• 2018, february

• In 1973, French producers and processors in the dairy industry formed the CNIEL (Dairy Industry Professions Association). Thanks to this body, the French dairy industry boasts a tailor-made and effective organisational structure. The CNIEL has two main aims: to bring dairy industry producers and processors together, and to promote the image of milk and dairy products.

• This structure is all the more important given that, ever since dairy quotas ended on 1 April 2015, the French dairy industry is increasingly exposed to signals from the international market and price volatility. Indeed, since 2014 it has been subjected to a world-wide crisis, with repeated discrepancies in supply and demand and falling prices. In this context, the European Union has implemented community measures, such as private storage and interventions.

• Dairy cow herd as of 1 April 2017: 3.6 million heads • In 2016 : > 58,462 farms delivered a total of 23.8bn litres of milk, for an average milk production of 412,000 litres per farm. > Around 2650 farms produced just over 220 million litres of cow’s milk for processing on the farm and direct sales. • France is the 2nd biggest milk producer in the EU28, providing 16.3% of total volume, behind Germany with 20.6%.• Globally, France is the 7th biggest producer, behind the USA, India, China, Brazil, Russia, and Germany.

• In 2014, the 1269 recorded dairy industry sectors accounted for 2.9% of industry and trade for major French food industry companies. They employed 59,847 staff, for a total of 55,991 full time equivalents.• 2016 production : > 3365 million litres of packaged milk, including 93% UHT milk, a constantly falling number > 2.7 million tonnes of ultra-fresh products (yoghurt, dairy desserts) > 1.2 million tonnes of cheese > 426,000 tonnes of fats > 1.3 million tonnes of powdered products• Around 15% of cheese produced has protected or controlled designation of origin. These products are testament to French expertise and gastronomy, which has “world intangible heritage” status at UNESCO.

• In 2014, dairy industries generated a turnover of €31.9bn excluding VAT (up €2.1bn in a single year – source: Esane). Turnover from exports stands at €7.6bn. • In 2015, dairy products worth €20.7bn were sold by companies with 20 or more employees, one third of which was sold as cheese, and 22% as fresh products.

Development of collection, number of farms, and average per farm

Dairy production in usable dry matter (2016)

Source : FranceAgriMer

Source : FranceAgriMer from EAL SSP

Milk collected in millions of tonnesAverage collection in litresNumber of farms

21,5

25,5

1996

2004

2000

2008

2014

1998

2006

2012

2002

2010

2016

1997

2005

2001

2009

2015

1999

2007

2013

2003

2011

22,5

23,5

24,5

22,0 50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

0

23,0

24,0

25,0

Cheese 40 %Powder 13 %

Fats 20 %

Milk 10 %

Yoghurt and dessertst 7 %Cream 7 %

Others 3 %

FranceAgriMer : Fact sheets

> Milk / Cow’s Milk Sector in France

www.franceagrimer.fr12 rue Henri Rol-Tanguy / TSA 20002 / 93555 Montreuil cedex Tél. : +33 1 73 30 30 00 / Fax : +33 1 73 30 30 30

CONSUMER HABITS

TRADE

SPOTLIGHT

MAP OF MAIN EXPORT MARKET

Sector

Dominique Chargé, president of the Specialised Council for Milk / Publishing Director: Christine Avelin Olivier Blanchard, Dairy Industry Delegate / olivier.blanchard@franceagrimer.fr / Tél. 01 73 30 30 70Myriam Ennifar, Cow’s Milk Economic Researcher / myriam.ennifar@franceagrimer.fr / Tél. 01 73 30 32 47Design and production: Communication Department and graphic team / Printing: Arborial’s printing facility

• In 2016, French households consumed 819,000 tonnes of cow’s milk dairy pro-ducts (in dry matter equivalent).

• Cheese accounts for 40% of these purchases, mainly in uncooked pressed cheese (41%), soft cheese (25%), and cooked pressed cheese (22%).

• The French are Europe’s top consumers of milk fats (8.0kg per capita per year in 2015) and cheese (26.8kg). Their consumption of liquid milk is below the European average (51.5kg compared to 61.2kg).

French exports to third countries by product in €m (2000, 2014-2016)

French exports of dairy products in 2016 Thousands of euros

• France enjoys a trade surplus for dairy products : > +€3.4bn (+€2.3bn with third countries and +€1.1bn with the European Union).

• With the European Union: 85% of France’s liquid milk exports are for this market, as are 83% of cheese and 96% of yoghurt and fermented milk product exports. France is, however, a net importer of butter, cream, and whey from the EU.

• With third countries: these countries represent the main market for French powders (Algeria is France’s top customer). 64% of France’s infant powder, 62% of skimmed powdered milk, and 52% of whey products are exported to markets in third countries.

• France also exports cheeses and fats (butter and cream), especially to the Asian market.

• France boasts an extremely wide range of products in both the ingredient and consumer categories. The versatility of the range makes the French cow’s milk sector more than capable of adapting to new opportunities and any obstacles to export.

• France possesses a broad portfolio of markets (66 countries, to which it exports more than $10m in dairy products), spread across every key importing region: North Africa (powdered products), Sub-Saharan Africa, South-East Asia and China (infant pow-der, fats), North America (cheeses), to name but a few.

• France is the top European exporter of skimmed powdered milk to third countries (25% of export volume), the second biggest exporter of infant powder (20%) and the third biggest exporter of cheeses (14%).

Excellence in export products

Milk 15 %

Household purchasing habits in dry matter (2016)

Fromage frais 5 %

Yoghurt 6 %

Cream 8 %

Dairy Desserts 5 %

Cheese 40 %

Fats 21 %

Source : FranceAgriMer from KantarWorldpanel

Source : FranceAgriMer from French customs

0

500

Cheese OtherLiquid milk Fats(butter and cream)

Powdered milk

1 000

1 500

2 000

2 000 2 014 2 015 2 016

2 500

> 100 000

de 20 000 à 100 000

de 5 000 à 20 000

de 500 à 5 000

< 500