French agrifood industry: Investment and exports as future bread and butter

11/25/2015 - Report
ic_blogtagFranceAgrifoodExportsIndustryInvestment
Revenue growth in the French agrifood industry has not prevented margin erosion: margin has decreased by six percentage points in ten years due to deflationary pressures and changing consumption patterns. The predominantly-cooperative model in France (revenue of EUR85bn in 2014) fosters members' bargaining power. However, a lack of investment coordination hampers exports (a mere 7% of revenue). Investment spending in agrifood is expected to increase.Non-current assets are forecast to grow by one percentage point in 2015 and two in 2016. This should drive up exports, which are expected to amount to EUR61.2bn in 2016, i.e. +EUR5bn in 2015-16.

Considering the market outlook, notably for exports, and the improvement in balance sheets, the number of insolvencies should decrease by -1% in 2015 and -3% in 2016.

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French agrifood industry: Investment and exports as future bread and butter - Report