France's agri-food sector faces decline as Italy and Spain outpace it, with industry leaders calling for better competitiveness and strategy.
French agri-food sector lags behind neighbors
France's agri-food industry is facing increasing competition from Italy and Spain, with industry reports showing the country is losing ground in global exports of processed food products. The CNPA's Observatoire du commerce extérieur agricole et alimentaire highlights that France, once a major player, is now struggling to maintain its position as the fourth-largest exporter of processed foods.Industry leaders warn of steep price hikes
Michel-Édouard Leclerc, a key figure in French retail, has warned that agri-food companies may push for price increases exceeding 4% to offset rising costs. Jean-François Loiseau, president of Ania, notes that the sector has faced annual deflation for 15 years, with only brief relief during the Ukrainian war, and now faces pressure from energy and packaging expenses.Retail pressure affects profit margins
Loiseau explained that the French retail sector exerts more pressure on agri-food producers than in other European countries, reducing profit margins. While efforts are ongoing in Brussels to regulate retail practices, Loiseau believes the sector could help French companies compete internationally if cooperation improves.French presence at Sial falls short
At the Salon International de l'Alimentation (Sial) in Paris, French companies are expected to be outpaced by their Italian and Spanish competitors. Loiseau noted that Italy leads with 700 participating companies, while Spain is gaining ground, and he expressed concern over France's lack of global competitiveness due to strict regulations and a focus on high-end gastronomy.Call for strategic international branding
Loiseau argued that French bakery products and pastries could serve as a strong international brand but criticized France's excessive governance and lack of focus on promoting everyday food products like hams and cheeses, which have helped Italy and Spain gain global markets. He also emphasized the need to maintain food safety while reducing unhealthy ingredients in products.Trade agreements and domestic policies
Loiseau stressed the importance of protecting France's agricultural base while promoting its products abroad. He raised concerns about the sugar tax's financial impact and suggested a focus on food education rather than additional taxes. He warned that the industry's future depends on both raw material prices and more effective international strategies.
