Organic in France: a market worth 8 billion euros

Organic products are popular in France but the import still largely prevails due to too low production.

Source image : Figaro

The growing success of organic food products in France could lead to higher imports if farmers do not increase their acreage and yields faster to meet this growing demand. This is one of the lessons of a study that has just published Coface, the tricolor leader of credit insurance. "The consumption of organic is increasing faster than supply since 2016 and France has started to import," say the authors of this work, Sarah N'Sondé , responsible for sectoral analyzes, and Bruno de Moura Fernandes, economist.

Last year, Hexagon imported more than half of the fruits, beverages and organic groceries it consumed, more than a quarter of vegetables and less than 10% of dairy products. France was self-sufficient in organic eggs, as in organic wine, where imports accounted for only 1% of consumption.

The inevitable expansion of holdings

France is currently the world's third largest organic market with sales growth of nearly 13%, to 8 billion euros for the current year. It is behind the United States (11 billion) and Germany (9 billion) but ahead of China and Canada. With 6.5% of organic agricultural land in France, compared to 8% on average in Europe, the margin of growth is important. In order to meet the strong demand for the internal market, Coface deems "the expansion of farms inevitable, despite the reluctance of some stakeholders fearing that the notion of organic farming is distorted by excessive industrialization of production."
But still it is necessary a policy of public aid European and French to the height of these stakes. The increase of the tax credit of 1 000 to 3 500 euros on the expenses engaged in this sector seems insufficient with respect to the suppression support for the maintenance of organic farmers. According to Coface, a 10% increase in the share of bio in a sector would lead to an 11% decrease in its failures