BLOG

Grain and Flour Market in France and Germany

13 January 201619 min reading
France has a total of 372 enterprises manufacturing flour and 439 production plants in general. It is stated that 435 production units produced 4.38 million tons of flour in 2013 and 439 production units produced 4.27 million tons of flour in 2014. Today the number of flour mills in Germany is 550. 213 of them produce more than 1000 tons per year. It produces 5.7 million tons of wheat flour and 650 thousand tons of rye flour in average. ulke1 With its area of 543 945 km2, France is the country with the largest area in the European Union as well as in Western Europe. France is bordered by six countries; Belgium and Luxembourg in north, Germany and Switzerland in east, Italy in southeast, and Spain in southwest. The country's population is 66.3 million in 2015. Europe is the country with the highest population rate after Germany. Germany is one of the largest countries in Europe, with its population of 81 million and area of 357 thousand km². The country ranks second after Russia among European countries in terms of population, it ranks first among the EU countries. Germany is a federal republic consisting of 16 states. The country is one of the key actors in the world economy and politics with its leadership position within the EU, strong economic, industrial, commercial and technological infrastructure. Germany is geographically located in Central Europe, between the Alps and the North Sea. Neighboring countries are Austria, the Czech Republic, the Netherlands, France, Poland, Switzerland, Belgium, Denmark and Luxembourg. GENERAL ECONOMIC OUTLOOK France which has the largest area in Western Europe as well as in European Union with its area of 552,000 km² is the 22nd most populous country in the world with the population of 65.82 million. Besides, France ranks fifth after the United States, China, Japan and Germany in the ranking of the world's largest GDP (Gross Domestic Product) in 2013. Commercial position of France has deteriorated so rapidly in the last decade because external competitiveness was weakened due to the inaction of policy makers. It is forecasted that regaining the competitiveness which is lost before will take time and France will continue to record large deficits on its balance of trade in goods. However, the current account deficit is expected to remain relatively constant thanks to the surplus on services and balance of income. The current account deficit which was 2% of GDP in 2013 is estimated to decline to 1.9% in 2014. Main economic problems which have been continuing in France since 1990s are respectively low growth rate, unemployment which has increased due to delocalization (relocalization of factories to the third countries due to high production costs caused by national competition), fiscal deficit and deficit in social security system. French economy has been recording growth rates below the growth rates of developed countries since 1990s. The growth rate of France which was recorded as 2% between 1990 and 2000 has declined below 2% after 2000. Germany which is the leading partner of Turkey in terms of exports and imports because of its high purchasing power is the third most developed industrial country following USA and Japan. With a population of 80.8 million, Germany is the biggest and most important market in European Union. The heart of German economy is manufacturing industry and related services industries. Telecommunication industry has also become one of the leading business areas while the most important manufacturing industries were industrial machinery, automotive and chemical industries before. As in the other industrialized countries, the importance of services industry has increased in Germany too. By 2014, services industry is 68.7% of economy. In 2009, German economy shrank 5% on annual basis with the highest shrinkage rate of the last 60 years. It is considered that the main reason of the shrinkage is the decline in private consumption. It is also stated that this decline is caused by slowdown in wage rise, the negative situation of employment and also the fact that consumers minimalized their expenses with the introduction of euro as they thought prices were increasing rapidly. PLACE AND IMPORTANCE OF AGRICULTURE France is known to be one of ten largest countries in the world in terms of agricultural production and remains as the leading agricultural power of EU. While North of France is famous with its large wheat farms, the western part of the town is famous for livestock farming and southern part is known for vegetables and fruits. France which produces wide range of agricultural products made agricultural reforms in consequence of Common Agricultural Policy (CAP) and General Agreement of Tariffs and Trade (GATT). According to the data of United Nations Food and Agriculture Organization (FAO), only 3.3 percent of active workforce is employed in agriculture in France. This rate is below the EU average which is 5.3 percent. Mechanization and technical developments in mechanization are believed to decrease this rate. The agricultural production of France meets 18 percent of total agricultural production of EU and this rate makes France the leader among the other EU countries. However, according to the CIA Factbook, the agricultural production which is mentioned above is equal to 1.7 percent of GDP. Besides, France is a net agricultural products exporter. France which mainly exports to EU countries also imports mainly from EU countries. The primary agricultural products which France produces are grains – wheat in particular, sugar beet, potato and grapes. 52.7 percent of the country’s territory is agricultural lands and 29 percent is forestland. The rate of arable land in the country is 33 percent. According to the data of CIA Factbook, 48 percent of Germany is agricultural lands and 31.8 percent is forestland. The rate of arable lands is 34.1 percent. The share of agriculture in the country’s economy is 0.7 percent. This rate is 30.4 percent in industry and 68.9 percent in services industry. Primary agricultural products which are produced are wheat, barley, potato, sugar beet and cabbage. According to the data of United Nations Food and Agriculture Organization (FAO), 90 percent of German agricultural enterprises are run by families. These farms cover two third of agricultural lands in Germany. German government supports the production variety of family farms in order to ensure stability and be successful in agricultural production. These family farms have also a significant role in realization of EU-CAP policies between 2014 and 2020. Therefore the government grants 50 euro for every 30 decare of their farms. GRAIN PRODUCTION IN FRANCE Wheat is the foremost product among the agricultural products which are produced in France as in many countries. According to the data of United Nations Food and Agriculture Organization (FAO), wheat production amount of the country is 32-40 million tons between 2004/05 and 2014/15 seasons. The lowest production amount from 2004/05 to 2013/14 season is 32.8 million tons in 2007/08 season. The highest production amount is recorded as 40.3 million tons in 2012/13 season. According to the data of FAO, wheat production of France which was 35.9 million tons in 2011/12 season increased to 40.3 million tons in 2012/13 season. In 2013/14 season, the production declined to 38.6 million tons. Although humid air caused the harvest to delay, damaged it and decreased the quality in 2014/15 season conditions were good for yields contrary to the forecasts. Wheat yield is between 61 thousand and 75 thousand hectogram (hg)/ha between 2004/05 and 2013/14 season. The highest yield rate is obtained with 75.9 hg/ha in 2012/13 season. Regarding the harvested area between 2004/05 and 2013/14 seasons, the highest number was obtained with 5.931 million ha in 2012/13 season. In 2014/15 season also, France which cultivated wheat on an area of 5.296 million hectare increased wheat production to 38.9 million tons due to increase in yields although cultivation area has reduce. Another important product in France’s grain production is corn. Corn production which did not show a steady graphic between 2004/05 and 2007/08 seasons has been around 15 million tons since 2008/09. Corn production, which was around 15.8 million tons in 2008/09 season, decreased to 15.2 million tons in 2009/10 season and 13.9 million tons in 2010/11 season. Increasing again in 2011/12 season, corn production rose to 15.9 million tons and was recorded as 15.6 million tons in 2012/13 season. Corn production amount of the country which was around 15 million tons reached to 15.8 million tons in 2014/15 season. The highest yield between 2004/05 and 2014/15 season was obtained with 100 thousand hg/ha in 2014/15 season and the largest harvested area was 1.848 million ha again in 2014/15 season. Another product which is mainly produced in France is barley. Barley production was recorded as between 8.7 and 12.8 million tons from 2004/05 to 2014/15 season. The lowest production amount between 2004/05 and 2014/15 season was 8.7 million tons in 2011/12 season and the highest production amount was 12.8 million tons in 2009/10 season. Barley production of France which was 11.3 million tons in 2012/13 season increased to 10.3 million tons in 2013/14 season and 11.7 million tons in 2014/15 season. Barley yield was 55-68 thousand hg/ha between 2004/05 and 2014/15 seasons. The harvested area also varied between 1.5 million and 1.8 million ha. The other cereals which France produces are oats, sorghum, rye, millet and rice. Oats production was recorded as 318 thousand tons in 2011/12 season and this amount increased to 400 thousand tons in 2012/13 season, 432 thousand tons in 2013/14 season and 443 thousand tons in 2014/15 season. Sorghum production of France varied from 230 thousand tons to 397 thousand tons between 2004/05 and 2014/15 seasons. It is seen that rye production varied from 119 thousand to 170 thousand tons in the same seasons; millet production varied between 20 thousand and 40 thousand tons; rice production varied between 82 thousand and 138 thousand tons. GRAIN PRODUCTION IN GERMANY Wheat is the primary grain among the agricultural products which are produced in Germany as in France. According to the data of United Nations Food and Agriculture Organization (FAO), wheat production of the country has been recorded as 20 and 27 million tons between 2004/05 and 2014/15 seasons. From 2004/05 to 2014/15 season, the lowest production amount was recorded as 20.8 million tons in 2007/08 season and the highest production amount was recorded as 27.7 million tons in 2014/15 season. According to the data of FAO, wheat production of Germany which was recorded as 22.782 million tons in 2011/12 season increased to 22.4 million tons in 2012/13 season. The production amount which declined to 25 million tons in 2013/14 season reached to the highest amount of the last ten years with 27.7 million tons in 2014/15 season. Wheat yield is 69.6 and 86.2 thousand hg/ha between 2004/05 and 2014/15 seasons. The highest yield was obtained with 86.2 thousand hg/ha in 2004/05 season. Considering harvested area, the highest number between 2004/05 and 2014/15 seasons was reached with 3.297 million tons in 2010/11 season. Another primary product in Germany’s grain production is barley. Corn production which was recorded as 10-12 million tons between 2004/05 and 2010/11 declined to 8.7 million tons in 2011/12 season, increased again in 2012/13 season and reached to 10.3 million tons. The barley production amount in 2013/14 season which is 10.3 million tons reached 11.5 million tons in 2014/15 season. The highest yield between 2004/05 and 2014/15 was obtained with 65.8 thousand hg/ha in 2013/14 season and the largest harvested area was recorded with 2 million ha in 2006/07 season. Another product which is mainly produced in Germany is corn. Corn production was recorded as between 3.2 and 5.5 from 2004/05 to 2014/15 season. The lowest production amount from 2004/05 season to 2014/15 season was obtained with 3.2 million tons in 2006/07 season and the highest production amount was obtained with 5.5 million tons in 2012/13 season. Germany’s corn production which was recorded as 5.5 million tons in 2012/13 season increased to 4.3 million tons in 2013/14 season and increased in 2014/15 season by reaching to 5.1 million tons. The corn yield between 2004/05 and 2014/15 seasons was 80 thousand and 106.8 thousand hg/ha; harvested area also varied between 401 thousand and 526 thousand ha. Other grain products which Germany produces are oats and rye. Oats production was recorded as 627 thousand tons in 2011/12 season and this amount increased to 756 thousand tons in 2012/13 season, decreased to 627 thousand tons in 2013/14 season and remained on this level in 2014/15 season. Rye production of Germany varied between 2.5 and 4.6 million tons from 2004/05 to 2014/15 season. The Rye production amount which is 3.8 million tons in 2012/13 season increased to 4.6 million tons in 2013/14 season and then declined to 3.8 million tons in 2014/15 season. GRAIN TRADE IN FRANCE The foremost product in France’s grain trade is wheat as in production. According to the data of FAO, export amount of the country on wheat basis reached 16.8 million tons in 2009/10 season while it was 14.8 million tons in 2004/05 season. France which has reached the highest wheat export amount with 21 million tons in 2009/10 season exported 20.3 million tons of wheat and decreased this amount to 16.4 million tons in 2012/13 season. Wheat export amount in 2013/14 was 19.6 million tons. The value of exports in 2013/14 season is 6.1 million tons. Corn is following wheat in exports. France which exported 4.7 and 7.3 million tons of corn between 2004/05 and 2013/14 seasons has kept its export amount above 6 million ton level. France exported 6.2 million tons of corn in 2011/12, 2012/13 and 2013/14 seasons. Barley export remains close to corn export. From 2004/05 to 2013/14, between 4.2 and 6.4 million tons of barley was exported. The highest barley export was obtained with 6.4 million tons in 2013/14 season and the lowest export amount was obtained with 4.2 million tons in 2006/07 season. Rice, oats and rye export of France remain below 100 thousand tons. Therefore, France which exported 74 thousand tons of rice in 2011/12 season decreased this amount to 55 thousand tons in 2012/13 season. Rice export which was realized in 2013/14 season was 67 thousand tons. France exported 67 thousand tons of oats in 2011/12 season; decreased this amount to 25 thousand tons in 2012/13 season; and increased it to 50 thousand tons in 2013/14 season. Rye export is recorded as low. Between 2011/12 and 2013/14 seasons, 20 and 35 thousand tons of rye was exported. Leading product in France’s grain import is corn and rice. The highest corn import amount was reached with 892 thousand tons in 2007/08 season. Between 2009/10 and 2010/11 seasons, it was recorded as 345-348 thousand tons and this amount increased to 481 thousand tons in 2011/12 season. France which imported 426 thousand tons of corn in 2012/13 season increased this amount to 535 thousand tons in 2013/14 season. Another imported grain product is rice. Between 2004/05 and 2013/14 seasons, around 400 thousand tons of rice was imported and this amount did not decline below 400 thousand tons and did not exceed 500 thousand tons. Wheat import follows rice import. France imported 519 thousand tons of wheat in 2011/12 season; increased this amount to 284 thousand tons in 2012/13 season. Imported wheat amount in 2013/14 season was 311 thousand tons. Wheat flour export of France is between 600 thousand and 800 thousand tons. According to the data of FAO wheat flour export which was realized as 776 thousand tons in 2004/05 season remained around 700 thousand tons until 2011/12 season; declined to 680 thousand tons and then to 650 thousand tons in the same season. The wheat flour import remains between 200 and 300 thousand tons. GRAIN TRADE IN GERMANY The leading product in grain trade of Germany is wheat. According to the data of FAO, wheat import amount of the country reached to 7 million tons in 2008/09 season while it was 3.9 million tons in 2004/05 season. Germany which reached the highest wheat export amount with 9.6 million tons in 2009/10 season exported 6.9 million tons in 2012/13 season and 8.2 million tons in 2013/14 season. The second most important grain which is exported is barley. Between 2005/06 and 2013/14 seasons, the highest barley export amount was reached with 2.9 million tons in 2005/06 season. The lowest export amount was also reached with 1.1 million tons in 2009/10 season. Barley export amount which was realized in 2013/14 season is 2.851 million tons. Corn export follows barley export. France reached the highest wheat export amount with 1.072 million tons in 2012/13 season. Corn export amount which was realized in 2013/14 season is 864 thousand tons. Between 2004/05 and 2006/07, rye export was realized above 1 million tons. This amount remained as 354-583 thousand tons between 2007/08 and 2010/11 seasons. Decreasing in the following seasons, the rye export which showed a decline decreased to 224 thousand tons in 2011/12 season and to 214 thousand tons in 2012/13 season. It increased again in 2013/14 season and reached 426 thousand tons. Germany imported 1.4 and 2.5 million tons of wheat in 2005/06 and 2008/09 seasons. Germany which increased this amount to 4 million tons in 2009/10 season imported 3.9 million tons of wheat in 2010/11 season and 4.4 million tons of wheat in 2011/12 season. Imported wheat amount in 2013/14 season is 3.8 million tons. Corn import follows wheat import. Corn import which was recorded as 1.8-1.9 million tons in 2008/09 and 2011/12 season was also recorded as 2.2 million tons in 2012/13 season and 2.1 million tons in 2013/14 season. For barley which is another important imported product, import amount was around 1-1.4 million tons. Germany which imported more than 1.4 million tons of barley in 2012/13 season decreased this amount to 1.1 million tons in 2013/14 season. Germany imports flour in a significant amount as well as importing wheat. According to the data of FAO, wheat flour export amount of Germany is around 500 thousand and 800 thousand tons. Being realized around 570 thousand tons in 2004/05 season, wheat flour export amount reached to 658 thousand tons in 2011/12 season. Continuing in the following seasons, wheat flour export reached to 723 thousand tons in 2012/13 season and 771 thousand tons in 2013/14 season. Wheat flour import also remained around 90 and 170 thousand tons. FLOUR INDUSTRY IN FRANCE AND GERMANY According to the data of Statistics Report 2014 (Fiche Statistiques – 2014) published by The French Milling Association (ANMF), there are 372 enterprises and 439 production plant producing flour in France. 275 of 439 production plants realize 92 percent of total flour production. It is stated that French milling industry used 5.45 million tons of wheat in order to produce 4.27 million tons of flour including the 2014 export amount of 475.689 tons. The income of this production is 2.05 billion euro including the export value of 205 million euro. 4.37 million tons of flour was produced in France between 2010 and 2011. While the number of production plants in the country was 456 in 2010 it decreased to 450 in 2011. It is also stated that 441 production units produced 4.36 million tons of flour in 2012; 435 production units produced 4.38 million tons in 2013; 439 production units produced 4.27 million tons in 2014. With these numbers, french milling industry which employs 6000 people ranks second in Europe and tenth in the world. 62.4 percent of 3.87 million ton flour produced in 2014 was used in bread production, 28.2 percent was used for biscuits industry, 5.3 percent was used for animal feed and starch production, 2.2 percent was used for export products, and 1.6 percent was also packaged in small bags and launched to the market. France exported 475 thousand 689 tons of flour to more than 90 countries in 2014. 62.8 percent of exported flour was sent to Africa, 32.4 percent was sent to EU countries, 7.8 percent was sent to the other regions. Among the African countries, Angola has the largest share with 39.8 percent. Among EU countries, Ireland has the largest share with 7.5 percent. Flour export amount of France was 277 thousand 474 tons in 2014. 97 percent of this amount is imported from EU countries. 71 percent of 277 thousand tons is imported from Germany, 15 percent is imported from Belgium, 3,4 percent is imported from Spain, 3.2 percent is imported from Luxemburg, 2.3 percent is imported from Italy and 1.8 percent is imported from England. According to the data of German Milling Association (Verband Deutscher Mühlen), Germany processes nearly 8.2 million tons of grains per annum. 7.8 million tons of this is wheat and rye to be used in bread production. According to the data of the association, the country produces approximately 5.7 million tons of wheat flour and 650 thousand tons of rye flour; the country also obtains 300 thousand tons of products with the process of durum wheat. It is also stated that mostly the southern states of Germany such as Bavaria, Baden Württemberg, Rhineland-Palatinate and Saarland are active in milling area and an average mill produces 40 thousand tons of flour per annum. The number of the mills in the country changes gradually. There were 19 thousand mills in 1950 and 2.500 mills in 1980. Today, the number of mills in Germany is 550. 213 of them produce more than 1000 tons per annum and this production amount is recorded officially. Considering the city based distribution of mills that produce more than 500 tons per annum, Bayern which produces 1.336 million tons with 60 mills ranks first. Baden-Württemberg producing 776 thousand tons with 56 mills ranks second, North Rhine-Westphalia producing 1,855 million tons with 20 mills ranks third, Lower Saxony – Bremen producing 1,539 million tons with 17 mills ranks fourth. Flour trade of Germany increases gradually. Flour export amount which was around 500 thousand tons in 2004/05 and 2009/10 seasons increased over 600 thousand tons in 2010/11 and 2011/12 seasons. Rising to 723 thousand tons in 2012/13 season, export amount was recorded as 771 thousand tons in 2013/14 season. Flour import amount has also showed an increase. Import amount which did not exceed 150 thousand tons between 2004/05 and 2011/12 seasons increased to 157 thousand tons in 2012/13 season and 163 thousand tons in 2013/14 season.
Articles in Country Profile Category
11 October 201810 min reading

A MAJOR PLAYER IN THE GLOBAL BARLEY AND CORN MARKET

Saudi Arabia has become a major importer of wheat and barley since abandoning plans in 2008 to beco...