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THE COMPETITION IN 1997
U.S. and
Competitor Expenditures on Export Promotion and
Export Subsidies for Agricultural, Forestry and Fishery Products
France
France is a world class competitor in agriculture products and food processing and clearly intends to maintain that position. France's major promotion organizations include the Societe pour l'Expansion des Ventes des Produits Agricoles et Alimentaires (SOPEXA) and the Centre Francaise du Commerce Exterieur (CFCE). In addition, the Compagnie Francaise d’Assurances pour le Commerce Exterieur (COFACE), France's export credit insurance agency, offers credit guarantees to exporters for market research and promotion, including participation in trade fairs in countries outside the EU. Total French government allocations to export market promotion by SOPEXA for 1996 are estimated at $10.3 million; industry contributions to SOPEXA’s international promotion budget totaled $50.1 million.
French Promotion Activity:
During 1996 the Ministry of Agriculture and SOPEXA reinforced the use of point-of-sale tastings in foreign countries for dairy products, wines and spirits and promoted the image of the "French Style of Living" and "French Cooking" through "French weeks" in foreign restaurants. The biggest event of the year was the wine waiter contest which involved 3,000 wine waiters from 24 countries. These waiters competed for a prize by demonstrating their knowledge of French wines.
SOPEXA is a semi-private organization owned by various French agricultural and food organizations and the Government of France. SOPEXA's funding comes from industry contributions (in some cases, generated from producer assessments) and the French government. SOPEXA's total 1996 budget for promotion in the domestic and international markets was $119 million, including FF305 million ($60 million) for international promotion. The French government contributed 17.6 percent of SOPEXA’s export promotion funds, or $10.3 million. The remainder of SOPEXA’s export promotion funds come from commodity associations and food industry contributions.
SOPEXA represents first and foremost a worldwide network with offices in 33 countries. 65 percent of SOPEXA’s international promotion funds are targeted to EU countries, including 25 percent for Germany and 20 percent for the United Kingdom. (This percentage mirrors the percentage of French processed food exports to other EU countries. Other major markets are the United States (12 percent) and Japan and other Asian countries (12 percent). (SOPEXA is one of the few European promotion agencies to promote actively in Asia, including China.) SOPEXA also maintains a delegation to the European Commission. SOPEXA's promotional activities include organizing in-store promotions, media events, developing promotional material, organizing international exhibits, trade missions and seminars, for the promotion of French wine and spirits, fresh and processed fruits and vegetables (including fruit juices and frozen foods), dairy products, fish and seafood, and meat and poultry products.
A number of industry associations conduct promotion activity domestically. They usually provide funds to SOPEXA for export promotion activities. These associations are funded by the contributions from their members, and in many cases by the French Government. Such organizations include: the French Association for Fresh Fruits and Vegetables and Nursery Products (ONIFLHOR); the Fresh Fruits and Vegetables Associations (INTERFEL and AFCOFEL); the National Office for Wines and Vines (ONIVINS); the Interprofessional Association for Dairy Products (CNIEL); the French Interprofessional Association for Fish Products (FIOM); the French Prune Board (BIP); the French Meat Office (OFIVAL). Forest products are promoted separately by the French Wood Association (FNB). No budget information is available for the FNB.
As noted above, most of SOPEXA’s promotion activities were carried out in other EU countries. The most substantial promotion effort outside of the EU is for wine and spirits. In 1996 a special effort was made to recoup lost market share following the end of a boycott to protest French nuclear testing. This effort was focused on Northern Europe and the Asia and Pacific regions. Branded promotions for wine and spirits were conducted in North America and Japan while generic promotions were conducted in Hong Kong and China. Marketing studies and education seminars were also conducted in North America and Southeast Asia.
Fruit and vegetable promotion outside of the EU included promotion of apples in supermarkets in Russia, Asia and the Middle East as well as pears in Russia. Processed fruits and vegetables were promoted primarily through participation in trade shows in the EU, U.S. and Middle East.
Dairy and meat product promotion outside of the EU is directed mainly at Eastern Europe, although some activities were conducted in the United States during the year. Marketing activities, primarily trade show participation, were also conducted for biscuits and confectionery in the United States and in Europe. SOPEXA spent approximately $2 million on trade shows during 1996.
CFCE is a quasi-governmental organization established in 1943, with a mandate to increase French exports of industrial and agricultural products by providing statistical information, market studies, and consulting services to French exporters. Within the CFCE, the Office of Food and Agricultural Products (DPA) is responsible for the expansion of agricultural exports. Markets targeted by CFCE in order of priority are: EU countries; OECD countries (non EU-Europe, the United States, and Japan in particular); and Southeast Asia. While CFCE contributes to France's agricultural export promotion efforts, its funding is not included in Table 1 of this report because its activities are more akin to the statistical activities carried out in government agencies in other countries.
COFACE, France's export credit insurance agency, offers credit guarantees to exporters for market research and promotion, including participation in trade fairs in countries outside the EU. COFACE became a private company in 1994, but may continue to provide government-assisted financing to riskier agricultural markets. In 1996 the French insurance group AGF became COFACE’s leading shareholder. COFACE’s costs of extending credit are not included in Table 1.
Other French government programs provide assistance to the French food industry and indirectly to exports, but are not included as export promotion assistance. The French Ministry of Agriculture annually supports special market studies, new agribusiness development, consumer food/health studies, and industry research and development, including the development of new food products which indirectly aid exports. The French Ministry of Agriculture also funds agricultural product promotions and certification policies by financing the INAO (French Office for Appellation of Origin). Expenditures for these specific activities are not available.
Competitor Activity:
Nearly all of the other EU countries conduct some form of market promotion in France. Products such as fresh or preserved fruits and vegetables, wine, beer, fish and meats are commonly promoted through participation in trade shows as well as public and trade advertising and supermarket promotions. Countries that do not have export promotion agencies often use their local embassies to conduct their promotion activities. Normally, British promotion would include a substantial focus on meat. However, with import restrictions on British beef due to BSE, little or no promotion was carried out for beef.
Non-EU countries promoting agricultural products in France include Norway, Israel, Morocco, South Africa, Argentina, Brazil and Canada. Israel and Brazil market primarily fresh fruits and vegetables and fruit juices. South Africa also markets fresh fruits as well as wine. All three of these countries conduct market promotions directly through their French importers. Argentina and Canada promote a wider variety of products, including meat and milk powder from Argentina and maple syrup, honey, horsemeat, lobsters, mustard seed, pulses, canola and wheat from Canada. Both use their embassies to organize trade show participation and other types of promotion. Morocco promotes fresh, preserved and dried fruits and vegetables as well as fish, spices, juices, wine beer, biscuits and candies through the Moroccan Center for Export Promotions (CMPE). CMPE is a public agency funded by the Moroccan government. Its main activity in France is participation in the major French trade shows.
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