The grain market - France

Cereals are all plants cultivated for their grains and used for human and animal consumption, as well as for industrial purposes. The world's main cereals are wheat, corn, rice, barley and oats. The European Union plays an important role in the French agri-food industry and enjoys a positive balance of trade, thanks in particular to France, which remains the European Union's leading exporter and the world's 7ᵉ largest exporter. Global cereal production is dominated by corn, ahead of wheat and rice, which together account for 97% of world cereal production. Other cereals produced include barley, oats and sorghum. Cereal growing in France will occupy 9 thousand hectares of cereal acreage in 2023, or around 53% of France's arable land, making French agriculture a major sector, with the North-West and South-West regions being the most dynamic in terms of production. [Agri-mutuel] A dozen cereal species are grown in France, including soft wheat, grain corn, barley and durum wheat. There are tens of thousands of agricultural productions in France, operating across the entire value chain: from collection to primary processing (milling, malting, etc.) and secondary processing (baking, biscuit-making, etc.). In 2023, the total value of French cereal production rose by 5.8% in volume terms, a good recovery compared to 2021/2022, a year marked by difficult climatic conditions leading to poor harvests. On the other hand, the market has been impacted by the conflict in Ukraine, which has disrupted the European agricultural economy and caused cereal prices to fall by an average of 28.4% in 2023, after two years of very high commodity price rises. This drop in export prices has significantly reduced French exports. In France, while 46% of cereals produced are exported, the remainder is used mainly forhuman and animal feed, either used directly on the farm by farmers for their livestock operations, or processed in factories. Bioethanol is an important part of French cereal production, as France is the leading bioethanol producer in the European Union. The total area of organic farms has exploded in recent years, reaching 500 thousand hectares by 2023, despite the fact that the number of land conversions to organic farming is falling every year. This increase can be explained by European subsidies and changing consumption patterns.