French food industry resisting the difficulties

- Last updated on GMT

Related tags: Food

As a result of the food crises menacing Europe the year 2000 was
undeniably a difficult one for the French food industry. However
the industry "resisted...

As a result of the food crises menacing Europe the year 2000 was undeniably a difficult one for the French food industry. However the industry "resisted well"​ according to Victor Scherrer, president of the French National Association for Food Industries (Association nationale des industries agroalimentaires). Turnover for the food industry reached FF825bn in 2000, twice the size of the car industry. Employment in the food industry increased by 1.7 per cent for the fourth consecutive year and the balance of trade remained at FF55bn. "We have confirmed our growth, "​ the president said. Although food production grew by 0.9 per cent this was less than the 1.9 per cent in 1999. One real danger for the industry is in the form of an increase in aggressive competition from the US. But the greatest recent threat has arrived with the food crises striking Europe. The meat industry, in particular, has suffered. Measures taken over BSE fears have resulted in an increase in imports (alternatives to banned animal feed), which have been subject to an increase in the price of tropical primary matierials. The industry is also concerned by the reduction in spending on food (16.4 per cent of household budgets in 1999) despite an increase in real prices. The French will soon spend more in the health sector (15.2 per cent) than on feeding themselves. In order to better confront these difficulties, in 2001 the food industry forsees a growth of 8 per cent in investments in the areas of food safety and the environment (FF700million in 2000). Source: Les Echos

Related topics: Market Trends

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