The last few weeks have seen noisy demonstrations in Brittany as the consequences of serious problems in the Breton food industry unfold.
Brittany has many similarities to Ireland, with a comparable population of 3,249,815 by a recent census, an Atlantic-dominated climate and a peripheral geographical position with respect to European food markets. It also has a strong sense of regional identity.
Despite handicaps, Bretons have developed a thriving agriculture and food processing industry, ‘punching well above its weight’, not least because of their strong agricultural co-operative tradition. The 38,000 farms, one in 10 with a quality label, employ some 73,000 people directly – 6% of the Breton workforce. However, it is calculated that each farm generates five off-farm jobs. On the farm some 500 young farmers install themselves every year.
Of the 14,455 ‘industrial premises’ in Brittany, around one third are agri-food factories. Some 70,000 workers are involved in the agri-processing industry – 35% of Breton industrial jobs with a €16bn to €18bn annual turnover. The region produces 35% of French poultry products and more than half of the national pigmeat/pork products.
Brittany also leads France in milk and egg production as well as cauliflower, artichokes, shallots and greenhouse tomatoes. The overall unemployment rate, currently 9.1%, is among the lowest in France.
Current closures
Recent events, however, have thrown some doubts on the future of this value-adding section of the industry. These include the closures in Carhaix and Chateaugiron of factories belonging to Marine-Harvest, the world number one salmon processing company, and the decision of poultry-processing group Tilly-Sabco to reduce activity by 40%, following the collapse of its rival Doux with a loss of 1,000 jobs. The GAD group is to close its (pig) abattoir in Lampaul-Guimiliau with a loss of nearly 900 jobs.
However, the most disquieting rumour has been the possible fragile state of the Brittany-based co-operative group CECAB with its 50 factories, 7,000 employees and a turnover of €2 billion. The group not only owns abattoirs, including 65% of GAD, but is a major vegetable processor in Europe under the D’Aucy label – number two in Brittany in conserved vegetables and number two in France in frozen. CECAB was involved in some ill-fated ventures in Eastern Europe.
Some of the success of Breton poultry product exports to the Gulf states and Africa was based on ‘Brussels origin’ export aid. This export-led commerce is now at risk because of low cost competition from Brazil and the cessation of EU aid.
Also of major concern is the proposed imposition of an (heavy goods vehicle) ‘eco-tax’ or carbon tax which will particularily affect Brittany because of its peripheral location.
tax
A scared French government in Paris has freed €15 million from currently scarce finances to alleviate the immediate local problems in Brittany. The full imposition of a heavy transport vehicle ‘eco tax’ to Brittany is now very unlikely; certainly there will be none on the N164, the main route into and out of Brittany. This is also to be upgraded. It will probably only be applied at half levels on other Breton roads. Another irritant for French farmers generally is the announcement of a trade deal with Canada. In particular there is concern that the entry of beef from hormone-treated cattle will damage the beef industry more than the increased cheese exports will benefit the milk sectors.
The Breton situation is a very good example of the desirability of a strong agri-processing sector.
It also illustrates the opportunities and the vulnerability ensuing from globalisation. While there are opportunities for quality labelled value-adding products there is also pressure for local low cost bases.