Adding value through marketing and distribution: artisanal and farm-processed livestock products from the less-favoured areas of France

Prof. Louis Lagrange, ENITA Clermont Ferrand, France

The objective of this paper is to present the products and the geographical areas on which we are currently working. However, as a start, I wish to insist on the creation of added value and methodological aspects.

1- To get back some added value or to create some added value?

To get back some added value is a recurrent question for the economical agents, especially in the food industry system (or food chain) from the farmers, even from the food industries.

They understand that the part of the added value, which should "normally" come back to them, was deducted by some economical agents down in the chain, the distributors in particular. The causes of this "deduction" would be due to some favouritism for the distributors.

To counterbalance this tendency (so to create a different economical regulation) the farmers can use the market or its institutions. Generally, they think that the market does not allow them to gain back this added value which was deducted. Therefore they constitute a lobby which pressurises the national government and European institution to obtain more interesting agricultural prices.

But the most important question is to create some added value, instead of trying to gain it back from agents down the chain. Therefore, it is important to incorporate services in the product to increase its value.

2-A methodological difficulty

At the macro-economical level, data from the national accountancy allow to calculate the added value brought by different parts of the food chain. For example, in 1988 for France (L. Mallassis and G. Ghersi, 1996), in 100 F of food products bought by the consumers, 21 F went to the farmer, 17 F to the food industry, 34 F to the external supplier of the chain food (industries supplying farmers).

However, at the level of the sub-groups of the food chain (beef chain, milk chain…) the national accountancy cannot be used, or with a lot of difficulties. It is therefore necessary to know the constitution of the value chain by surveys in enterprises and prices' observations at different level of the chain. The price difference among 2 stages of the chain allows to see a margin (without tax selling price - without tax buying price) which could be a first evaluation of the added value at this particular level of the chain.

3-The heritage food products from difficult areas : example of the Massif Central

Our information sources : the Observatory of the heritage food products of the Massif Central

As I was asked, for the LSIRD, to give a presentation about the added value of craft products and farm products in the difficult French areas, I will use the data from our Observatory of the heritage food products of the Massif Central. Its aim is to collect, treat and analyse the economical data of the products with an official quality label (AOC, Red Label, Conformity certificate, Organic label) and also products with a heritage connotation (farm products…).


Principal characteristics of the production economy of the Massif Central

This region, situated in the centre of France, is constituted by mountain areas and piedmonts which form a same geographical, economic and social entity (bill of the 20 September 1985). It is gathering 2 administrative regions (Auvergne and Limousin) and also parts of other administrative regions. The mountain area covers roughly 60% of the farms and agricultural areas. The Massif central, with 13% of the agricultural population and 14% of the French agricultural areas (table 1) only represent 7% of the final French agricultural production; this justifies that it is nearly entirely entitled to EU FEOGA 5b measures.

The animal production is the principal production and represents 85% of the final agricultural production. It is characterised by an important beef herd (suckling herd which uses the Red Label, cheese production which uses the AOC) and sheep herd (Roquefort cheese). These productions allow to valorise the permanent pastures (2/3 of the agricultural area).

Table 1 : Principal characteristics of the economy of the animal production in Massif Central:

Massif Central

(1994 estimations)

%Massif/France

(1994 estimations)

total population

agricultural population

3 700 000 inhabitants

350 000

6.5%

13%

Agricultural area 4 000 000 ha 14%
agricultural farms:

number

average area


105 000

38 ha


13%

/

number of food industries 202 (1) 5% (1)
number of milking cows 593 000 13%
number of suckling cows 1 250 000 31%
number of ewes 2 700 000 39%
number of poultry 11 300 000 4%
number of sows 72 000 7%
finale animal production (a) 17 billions F 12%
finale agricultural production (b) 20 billions F 7%
a/b 85% /

Source: Agricultural, Fisheries and Food Ministry (SCEES and DRAF-SRSA Auvergne)

(1) enterprises of 10 and more employees, only for Auvergne and Limousin.

Importance of the cheese production

10 AOC are used. It is representing 65500 tonnes and is concerning 15 000 farms.

Importance of the cattle production

6 Red labels and 4 Conformity certificates were counted for cattle in the Massif Central. They represent respectively:

-40% and 36% of the number of Red labels and Conformity Products certificates used for the cattle in France

-45% and 17% of the tonnage labelled in France

Within the Massif Central, more than half of the cattle breeders produce under label or conformity products certificates. However, the labelled production remains modest with 12% of the cattle produced in Massif Central.



Importance of veal production

3 red labels for the veal have been counted compared with the 7 national ones.

The red label for veal represents:

No conformity product certificate was found for veal in the Massif Central.

Importance of lamb production

The Massif Central counts 3 red labels for the lamb, which is a quarter of the French labels and 76% of the production.

Conclusions

These above elements were all described to emphasise the Massif Central as an observation terrain for the added value of quality animal products.

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