A WIDE AND MULTIPRODUCT RANGE OF VEGETABLES
NOVEMBER 2013
Fresh vegetables
(600 000 T)
320 Millions €
Early potatoes potatoes plants
(20 000 T) (120 000 T)
60 Millions €
Horticulture (flowers - nursery)
45 Millions €
A little bit less !
+ +
1961 : creation of SICA of Saint-Pol-de-Léon and first auction market 1962 : Agriculture Orientation Law 1963 : The first PO are recognised
1965 : Creation of CERAFEL 1966 : Decision of extension of rules : all the sales between growers and merchants must be done by the auction markets 1967 : application of the decision
HISTORICAL
Areas knowledge Supply forecasts Quantities monitoring :
supplied, exported, processed, withdrawals,
Minimum price Mutualisation found Processing contracts Certification support, Withdrawal control
MARKET REGULATION
QUALITY MANAGEMENT STANDARD management
and standards
Documents and specifications : support of the quality system
Information (legislation, GAPs,
technic and agronomy…)
Traceability Specifications, procedures,
risk analysis…
Monitoring on legislation, standards, practices … and transfert to farmers
Monitoring plan of plant protection product residues on vegetables
More than 600 samples, which translates to more than 40,000 basic analyses, are conducted annually
Answer to clients demands : traceability, residue analysis, certifications…
Relation with suppliers to ensure quality of plants, manure, technical advice
Audit of QMS
A brand name
Contact with customers
Participation to international meetings and exhibition
Communication
Point-of-sales animations
Monitoring
Strategy competition watch
PROMOTIONAL ACTIONS
Improvement of production conditions
Incentive to use environnement-friendly process
Product traceability Promotion crisis prevention and
management measures.
MANAGING OF THE OPERATIONNAL PROGRAM (CMO FRUIT AND VEGETABLES)
Producers organisations (Pos) are the basic actors in fruit and vegetales regime. In the face of ever greater concentration of demand, grouping supply in this way strengthens producers’position in the market. The EU fruit and vegetable regime supports operational programs implemented by recognised POs. P0s can gather in associations of P0s (APOs) which have the same prerogatives than POs. POs or APOs can extend some rules in their area under certains conditions for one or several products.
THE CMO FRUIT AND VEGETABLES
CATE Greenhouse and open field) TERRE D’ESSAIS
(organic production)
Auray (biomatériaux)
Kerguéhennec (légumes industrie)
OBS (creation,
multiplication)
Bretagne
Plants (creation, research)
VEGENOV BBV (Biotechonology)
INRA
RESEARCH AND DEVELOPMENT
Organisations
linked to
CERAFEL
CARACTERISTICS OF THE FRUIT AND VEGETABLES MARKET (in France)
septembre 2016
• More than 50 items, with a diversity of areas, farms and marketing networks, …
• Working costs less or more importants : some crops are machineable, for other, working costs reach 80% of total
• No obstacle to access to the market, except for processed fruit and vegetables with whom it’s necessary having a proccessing unit in the sale channel,
• Varying perishability : some products can be stored, others not because of a very short life
• Variability of supply (weather dependance), demand and prices : inavoidable character of cyclical crisis.
MAIN PRODUCTION AREAS IN EUROPE
septembre 2016
1 - Andalousie
2 - Flandres
3 - Murcie
4 - Valence
5 - Pouilles
6 - Bretagne
SALE CHANNELS FOR FRUIT AND VEGETABLES (in France)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2009 2010 2013
Others
Grocers
Specialised
Markets
HD
Super
Hyper
% buyed quantities
BONDUELLE
DAUCY
AUTRES
FOURNISSEURS
FOR PROCESSED VEGETABLES: 100% UNDER CONTRACTS
septembre 2016
GROWERS PROCESSERS
SUPERMARKETS CHAINS
AUCHAN
CARREFOUR
CASINO
LECLERC
INTERMARCHE
Marche de Phalempin
Primacoop
France Endives
Valois Fruits
Fraileg
Cap endives
Primsanterre
Sipema
Soleil du Nord
Nord Alliance
Sipenord
AUCHAN
CARREFOUR
CASINO
LECLERC
INTERMARCHE
ENDIVE : MANY CONTRACTS BUT A LACK OF SUPPLY CONCENTRATION
septembre 2016
700 GROWERS
OTHER GROWERS
MERCHANTS PO SUPERMARKETS CHAINS
Others operators
ON A MARKET OF 14 000 TONS PER WEEK CONTRACTALS COMMITMENTS REPRESENT 50 %
septembre 2016
Ordered and
delivered
volumes
Not delivered
Free volumes « over-
the-counter »
5 000 T à
0.80 €
2 000 T
7 000T
CONTRACT
WITH
VOLUMES AND
PRICES
7 000 T à 0,80 €
This volumes are
stored by suppliers
First effect: prices go
down below 0,80 €
Second effect:
Supermarkets ask a price
reduction
SICA SAINT-POL
SOCOPRIM
TRISKALIA
BRETONNE
UCPT
TSM
AUCHAN
CARREFOUR
CASINO
LECLERC
INTERMARCHE
THE MARKET ORGANISATION IN BRITTANY
septembre 2016
2000 GROWERS 6 PO
SUPERMARKETS CHAINS
•
•
•
•
50 MERCHANTS
MARCHE AU
CADRAN
APO
CERAFEL
FRANCE
EXPORT
PROCESSED
WITHDRAWALS
- €
0.20 €
0.40 €
0.60 €
0.80 €
1.00 €
1.20 €
1.40 €
1.60 €
1.80 €
2.00 €
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A CAULIFLOWER SEASON (unit : in heads)
PRICE PER HEAD
septembre 2016
REGULATION OF THE FRESH MARKET BY PROCESSING
PO producing cauliflowers
Processing units
• Annual contract with prices and
volumes
• Coordination of deliveries
in the area *
• A single package for all the
operators
• Costs mutualisation between all
the growers
*the transfer of property is effective in all the
PO but not between PO and the APO
The case of cauliflower
septembre 2016
REGULATION OF THE FRESH MARKET BY PROCESSING
CONTRACTUALIZATION : NECESSARY CONDITIONS
septembre 2016
• An organisation based on true producers organisations with transfer of property
• A possibility of arbitration in the PO or in an APO
• A mutual common fund to carry on all supply regulations an promotionnal operations
• A clarification of the competition rules
CONTRACTUALIZATION : LIMITS
septembre 2016
• Fragility of the interbranch framework
• The dominant position and the abuse of dominant position
• The definition of the relevant market
• The risk of illegal agreement in case of lack of transfer of property
• The risk to be considered as an obstacle to free trade
IN WHICH SITUATION ARE WE IN CONTRACTS ?
septembre 2016
• The contract have to be signed only at the first level of the supply chain,
• All the growers in cooperatives are considered like engaged by contract with their cooperative,
• On the traditionnal markets, there is an exemption,
• The buyer must propose a contract to the supplier but the supplier is not required to accept !
• However, some operators use contracts to gain market shares, but it isn’t always in the growers’ interest !
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