Sector Cow milk FranceAgriMer : Fact sheets Sector INDUSTRY STRUCTURE PRODUCTION PROCESSING SALES key statistic: 24.6 million tonnes of milk collected in 2016 2nd largest European producer Trade balance +€3.4bn > Milk • 2018, february • In 1973, French producers and processors in the dairy industry formed the CNIEL (Dairy Industry Professions Association). Thanks to this body, the French dairy industry boasts a tailor-made and effective organisational structure. The CNIEL has two main aims: to bring dairy industry producers and processors together, and to promote the image of milk and dairy products. • This structure is all the more important given that, ever since dairy quotas ended on 1 April 2015, the French dairy industry is increasingly exposed to signals from the international market and price volatility. Indeed, since 2014 it has been subjected to a world- wide crisis, with repeated discrepancies in supply and demand and falling prices. In this context, the European Union has implemented community measures, such as private storage and interventions. • Dairy cow herd as of 1 April 2017: 3.6 million heads • In 2016 : > 58,462 farms delivered a total of 23.8bn litres of milk, for an average milk production of 412,000 litres per farm. > Around 2650 farms produced just over 220 million litres of cow’s milk for processing on the farm and direct sales. • France is the 2nd biggest milk producer in the EU28, providing 16.3% of total volume, behind Germany with 20.6%. • Globally, France is the 7th biggest producer, behind the USA, India, China, Brazil, Russia, and Germany. • In 2014, the 1269 recorded dairy industry sectors accounted for 2.9% of industry and trade for major French food industry companies. They employed 59,847 staff, for a total of 55,991 full time equivalents. • 2016 production : > 3365 million litres of packaged milk, including 93% UHT milk, a constantly falling number > 2.7 million tonnes of ultra-fresh products (yoghurt, dairy desserts) > 1.2 million tonnes of cheese > 426,000 tonnes of fats > 1.3 million tonnes of powdered products • Around 15% of cheese produced has protected or controlled designation of origin. These products are testament to French expertise and gastronomy, which has “world intangible heritage” status at UNESCO. • In 2014, dairy industries generated a turnover of €31.9bn excluding VAT (up €2.1bn in a single year – source: Esane). Turnover from exports stands at €7.6bn. • In 2015, dairy products worth €20.7bn were sold by companies with 20 or more employees, one third of which was sold as cheese, and 22% as fresh products. Development of collection, number of farms, and average per farm Dairy production in usable dry matter (2016) Source : FranceAgriMer Source : FranceAgriMer from EAL SSP Milk collected in millions of tonnes Average collection in litres Number of farms 21,5 25,5 1996 2004 2000 2008 2014 1998 2006 2012 2002 2010 2016 1997 2005 2001 2009 2015 1999 2007 2013 2003 2011 22,5 23,5 24,5 22,0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000 0 23,0 24,0 25,0 Cheese 40 % Powder 13 % Fats 20 % Milk 10 % Yoghurt and dessertst 7 % Cream 7 % Others 3 %