The Food Industry
The food industry in France had a turnover €184 bn in 2014, of which 20% was the meat sector, 17% the dairy sector, 15% the drinks sector, 14% foodstuffs and 13% bakery products and pasta. The industry employs 525,000 employees (in full time equivalents) in 62,000 businesses, mostly small- and medium-sized businesses of less than 250 employees, but with several large global groups.
The food industry is a truly international industry and it operates in an environment of strong international competition, subject to movements in exchange rates and to the unpredictability of the climate and its impact on agricultural production.
It needs to develop a balanced model for commercial relations with the retail chains through investment in products (quality, innovation, anticipation of customer demand, etc.) as well as in the means of production (modernization, competitiveness, health and safety requirements, etc.)
In 2016 Zalis conducted a search for investment opportunities in France for three foreign food producers, two in the meat sector and one in the ready-made meals sector.
Fishing and Fish Farming
The fishing and fish farming sector in France represented a turnover of €1.8 bn in 2014, 60% for fresh and frozen fish, 30% for shellfish end 10% for farmed fish. These sectors employ around 16,200 people.
Furthermore, the fish trade generated nearly €2.4 bn in turnover and employed around 6,000 people.
The fishing market is totally open to international competition. 2/3 of the fresh fish and half of the frozen fish sold in France is sold in supermarkets and hypermarkets.
Fishing is strictly regulated in order to conserve stocks (quotas, size limits, fishing seasons, fleet renewals, fishing equipment, etc.). The European fishing industry is also anxious of the risk of losing access, partially or entirely, to British fishing waters “post Brexit”.
The profitability of investments in fishing vessels is dependent on the financial assistance available for fleet renewal and on the cost of fuel.
The fishing sector is subject to stringent controls regarding quality and health and safety.
Zalis has a sound understanding of the economics of this sector.