The competitiveness of the French poultry sector: between doubts and hopes

Abstract

The French poultry sector, which still has a growing domestic demand, decreased its production during the last decade (especially for turkey). This reflects a loss of competitiveness compared to other countries, particularly European ones, which are especially well structured in productive and industrial terms and dynamic in innovation and trade. French imports of poultry meat, which come primarily from neighboring countries (Germany, Belgium and Netherlands), and much more rarely of major players in world trade (Brazil, USA, Thailand, etc.), are becoming a problem. They represent, in 2014, more than 30% of domestic consumption against 15% in 2000. Even though the French trade balance in poultry with third countries (outside European Union) (remains positive, nothing is guaranteed for the future: at the short-term the end of export refunds has not yet produced its effects and French exporters have benefited in 2014 from a favorable exchange Euro/US dollar rate; at the medium term, the competition between the major exporting areas could increase due to competitiveness gaps, the increasing openness of markets and the sensitivity of trade flows to changes in exchange rates; the number of client countries for France is limited, which increases the level of dependence on geopolitical changes; recent developments in EU rules regarding export subsidies can also affect some sectors/regions. In conclusion, attention is paid to the reason for hope for the French poultry sector: a strong momentum in global demand; a French market with high added value for some niche markets (quality poultry); the start of a restructuring of the French sector should encourage at least partial reconquest of the domestic market.