The cattle and sheep slaughterhouse market - France

The global meat production market, encompassing beef and sheep among other animals, is projected to grow significantly, with an expected market size of $1157.55 billion by 2025, which translates to a compound annual growth rate (CAGR) of 7% from 2020. This growth is attributed to factors such as demographic expansion, advances in industry automation and innovation, and a trend towards premium offerings. Specifically, in the beef sector, the United States and Brazil lead global production, while China dominates the sheep meat market. In France, there has been a slight market growth despite a decline in the number of cattle and sheep slaughterings.

The French sector is increasingly concentrated with the Bigard group dominating, although public abattoirs face difficulties. The French meat industry is characterized by a positive trade balance for live animals but a negative balance for processed meat, indicating higher imports of meat compared to exports, with beef having a coverage rate of 78% and sheep meat only 9.7%. Additionally, there has been a notable increase in meat prices, indicative of these meats becoming more of a premium product, with the consumer price index for beef and sheep meat rising at a higher rate than the general index from 2010 to 2020.

Supermarkets and hypermarkets are the primary distribution channels for meat, especially in France, showing the country's market dynamics and consumer behaviors. Overall, the global meat market demonstrates robust expansion prospects, driven by multiple economic and social factors.

The French market for cattle and sheep slaughterhouses is witnessing modest growth amidst a backdrop of declining numbers in cattle and sheep slaughtering.

While the overall international meat market is on the rise, expected to balloon by approximately 39% between 2020 and 2025, the French market presents a more static picture, with its 265 slaughterhouses facing not only a contraction in the number of slaughtering events but also consumer concerns over animal welfare.

French production has seen a decline, with the number of controlled cattle slaughters dropping by about 5% compared to 2015 , a more precipitous 12% compared to 2010, and an even more substantial 18% compared to 2000. For sheep, the reduction in slaughtering volume is less pronounced from 2015 to 2020 at around 1.6%, but a significant 30% when looking back to the year 2000. Among the players in the French market, the Bigard group stands tall, dominating the industry by controlling a significant portion of beef and sheep production through their network of slaughterhouses.

The sector is highly concentrated, to the extent that almost 90% of production and slaughter are managed by just five industrial operators. This consolidation is confirmed by a more than 20% reduction in the number of cattle slaughterhouses. In terms of labor, the slaughterhouse industry has also witnessed a dip in its workforce from over 41,000 in 2007 to under 39,000 in 2019.

When it comes to financials, despite the shrinking workforce and the number of establishments, the market's size for meat processing and preservation has grown by close to 31% between 2000 and 2021, culminating in a value just above 19 billion euros for the year 2021. The main challengers for this market are the concerns around animal welfare and a significant shift towards higher meat quality demanded by consumers, which has contributed to price increases.

Consumer price indices for beef and sheep meat have seen rates of growth that surpass those of general commodities, indicating a trend towards meat being perceived as a more premium or even 'luxury' product. Despite these hurdles, France's trade balance for live animals remains positive, even though it's on a declining path and the scenario.

Dominant Forces in the Beef and Sheep Meat Industry

The global market for meat production, including beef and sheep meat, is characterized by the notable presence of key players who significantly shape the industry's landscape. The dominance of certain companies has created a highly concentrated market, especially within certain regions.

• The Bigard Group:

A Colossal Presence in France At the forefront of the French meat industry stands the Bigard Group, a titan in the sector. The group's vast network encompasses 28 slaughterhouses, and it purchases more than half of France's beef production. Its influence is so significant that it doesn't just lead within the domestic space but is also on the brink of dominating the pork market as well. The Bigard Group's strategy of acquisition and consolidation has made it a central pillar in the industry, with a capability that extends from slaughtering and cutting to the distribution of both beef and sheep meat. This kind of market power puts Bigard in a pivotal position, allowing it to set standards and influence pricing within the sector.

• Public Abattoirs:

Struggling Giants Contrasting the might of Bigard are the public abattoirs, which are in a more precarious position. Over the years, the number of public slaughterhouses has diminished, with their market share in meat production and slaughtering significantly reduced from the heydays of past decades. Issues like oversized and under-utilized facilities have contributed to a challenging financial situation for many public abattoirs. However, public slaughterhouses play a unique role in the market by providing an option for farmers to pay only for the slaughter service, giving them the ability to retrieve the meat for further processing — an option not available in private establishments like those owned by Bigard. Public abattoirs, therefore, represent an alternative model within the market, one that could potentially benefit from restructuring or operational changes proposed by bodies like the Cour des Comptes.

• The Role of Intermediaries:

Bridging the Gap The industry also benefits from the crucial role played by intermediaries such as live animal traders, livestock markets, and agricultural cooperative sales agents. These intermediaries form a vital bridge between livestock farmers and slaughterhouses, managing aspects ranging from selection and trading to animal logistics. Organizations like the Fédération des marchés de Bétail vif (FMBV) and the Fédération française des commerçants en bestiaux (FFCB) represent significant portions of the market, with a substantial share of animals sold at markets or exported to third countries.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 16/03/2022

Summary and extracts

List of charts

• Number of meat processing and preservation plants
• Employees registered under activity 10.11Z
• Number of cattle slaughterhouses
• Controlled slaughter of cattle and sheep
• Gross domestic meat production
• Cattle exports and imports
• Beef exports and imports (fresh + frozen + canned)
• Main trading partners for exports of live cattle for slaughter
• Main trading partners for imports of live cattle for slaughter
• Lamb exports and imports
• Sheepmeat imports and exports
• Consumer price indices (cattle vs. general index)
• Consumer price indices (sheep vs. general index)
• Average price of 1 kg of meat in supermarkets
• Composition of the average GMS price (excl. VAT) for fresh sheepmeat
• Composition of the seasonal basket as a percentage of the average annual retail price (excluding VAT) in supermarkets
• Average purchase prices by distribution channel (Fresh meat, excluding processed products)
• Size of the meat processing and preservation market
• Market size for beef and sheep meat processing and preservation
• Breakdown of beef distribution channels (volume)
• Distribution channels for veal (volume)
• Distribution channels for sheep meat (volume)
• Size of the global meat industry market
• World beef production
• Share of beef production by region
• The world's leading beef producers
• World sheep meat production
• Share of sheepmeat production by region
• The world's leading producers of sheepmeat
• Average annual consumption per inhabitant
• Breakdown of average per capita consumption by volume, by type of meat
• The desire to reduce animal protein consumption in favor of greater environmental and taste quality of products
• Penetration rate of various products
• Breakdown of beef purchases by region
• Volume of veal purchases by region
• Breakdown of sheepmeat volume purchases by region
• Beef consumption volume index by income class
• Calf volume consumption index by income class
• Sheep meat volume consumption index by income class
• Beef volume consumption index by age
• Calf volume consumption index by age
• Sheep meat volume consumption index by age
• Index of beef consumption by household type
• Index of veal consumption by household type
• Sheepmeat consumption by volume index by household type
• Support for the claim that the slaughter of conscious animals is unacceptable
• Support for the slaughter of farm animals at their place of rearing rather than in slaughterhouses
• Support for the ban on intensive livestock farming
• Frequency of organic meat consumption
• Reasons to eat organic meat
• The perceived legitimacy of selling organic meat at a higher price than non-organic meat