annual report

Transcription

annual report

ANNUAL REPORT
2012
CONTENTS
The Chairman’s and CEO’s report
AGRIAL IN 2012
2
4
Key ﬁgures 2012
4
Agrial’s geographical presence
6
The Board of Directors
8
The Executive Committee
9
2012 highlights
OVERVIEW
10
14
The rising cost of raw materials
14
Agrial’s growth in food-processing
19
Agrial supports sustainable development
24
AGRIAL’S BUSINESS ACTIVITIES
30
Upstream Division
32
Seeds Division
39
Rural Distribution Division
40
Farm Machinery Division
41
Milk Division
42
Poultry & Meat Division
43
Beverages Division
44
Vegetables Division
45
THE CHAIRMAN’S
AND CEO’S
REPORT
2012 was a particularly eventful year
for the Agrial Group, a year which saw
the acquisition of new businesses and
territories. Following a 20% increase in 2011,
turnover rose strongly again in 2012
by +33% to 3.6 billion euros. Net result is
45 million euros, the highest ever achieved.
Proud of our cooperative values
As part of the International Year of Cooperatives,
the 1st International Summit of Cooperatives
attracted over 2,800 people to Québec in
October 2012. It was an occasion to emphasise the strengths and values of this business
model, the world-wide importance of which few
people appreciate: a million companies, 100
million employees and a billion members, an
indisputable social and human force. In a deeply
changing world where finance tends to take
precedence over the economy, the cooperative
model is increasingly seen as a credible alternative for it enables democracy and market
economy to exist side-by-side.
We are convinced of the virtues of this model
which adapts to the needs of its members, but
cooperatives are faced with new challenges:
upstream or downstream increase in the scope
of business activities, mergers, alliances, globalisation... not to mention the necessary changes
in their governance.
Indeed, changes in Agrial’s governance have
been at the centre of a major undertaking by
the Board of Directors throughout 2012 and
have resulted in the production of a charter of
governance. These changes within the framework of our development are necessary in
order to strengthen members’ representation
on the various bodies of the Cooperative and
to guarantee the decision-making and control
powers of the Board of Directors. This charter
respects the balance between representation of
2 > AGRIAL ANNUAL REPORT 2012
Arnaud Degoulet
Chairman
the territories and representation of production
units, one of Agrial’s strong points.
An agricultural context marked
by the explosion in the price of raw
materials
Already noticeable in 2011, the increase in the
price of agricultural raw materials continued in
2012, having different impacts on the income of
members, according to what they were producing. The prices of cereals and oil seed reached
record prices and the recovery in the price of
animal products has not always been sufficient
to compensate for the rise in the cost of feed.
Agrial has recorded good performances over
the whole of the Upstream Division, in spite of
business volumes in beef and pork being slightly down. The production of cereals and seeds,
in spite of late harvesting due to the bad weather, has increased; however, sales of cereals
show a reduction because of strong export
competition. Agricultural Supplies and Animal
Feed are in line with our objectives. The same
is true for the Rural Distribution Division whose
business activity with farmers has improved.
The Farm Machinery Division has profited from
the steady market in agricultural equipment and
has shown an appreciable increase in the sale
of robots.
Substantial investments in the
agribusiness divisions
The planned merger with the Senoble Group
announced in October 2011 was finalised in
decision making process and receive a profit on
their businesses.
Ludovic Spiers
CEO
March 2012 with the creation of the Senagral
company, owned jointly by Agrial and Senoble.
The enterprise specialises in the production
of ultra-fresh dairy products. Following the
increase to 65% in the capital of Délicelait, a
manufacturer of dairy products for food-processing industries, the creation of Senagral bears
witness to Agrial’s position as a new player
in dairy processing. The newly created Milk
Division is proving its full worth, having realised
this year a turnover better than 1 billion euros.
Agrial can now play a role in the necessary
restructuring of the French milk business, in particular in the cooperative sector. As proof of this
is the draft merger with the Eurial cooperative,
announced at the start of 2013.
Agrial is also continuing its expansion into the
Vegetables sector by taking over the French
and Spanish businesses of Bakkavör, a player
in the salads, fruits and ready-to-use vegetables
markets. It has also reinforced its Meat business
activities as a result of the acquisition of Charcuterie Cosme and of the Maître Jacques company,
a specialist in the processing of fresh meat. We
should also mention the buyout of Manzana in
the United States, a company involved in the
production of apple compote, juice and vinegar.
This is Agrial’s first site outside Europe.
These external expansions in food-processing
activities are all part of Agrial’s strategy, of which
the primary objective is to give stability and
profitability to the Cooperative’s members. In the
same way, members must be fully involved in its
Investment in agricultural activities has not been
neglected. Two projects started in 2012 will
come to fruition in 2013: in July, the new industrial tool devoted to fodder seeds, co-owned by
Agrial and RAGT, and, at the end of the year, the
new storage platform for products intended for
self-service in our stores. The investment which
was planned to take place in 2012 concerning
the collections of cereals, has been delayed,
but the creation of new silos remains a priority
for 2013.
Increased results, maintained
financial ratios and a return of
6.7 million euros for members
2012 was an exceptional year in terms of
investments with an envelope of 223 million
euros, of which a large part went to milk
processing. These substantial projects, made
possible because of the Group’s healthy financial
position, fall within the framework of a trend in
profitability which is increasing year on year. The
accounts for the 2012 financial year show a net
result of 45 million euros, an increase of 18 %
compared with the previous year. All divisions
are showing results in line with our objectives,
with the exception of the Poultry business which
has taken the brunt of the increase in the cost
of raw materials, costs which are difficult to pass
on to clients.
At the Agrial region assemblies and the
Annual General Meeting in May 2013, the
Board of Directors will propose that 6.7 million
euros be distributed to members, in the shape
of payment of share capital and returns on
business.
Once again, we can see the advantages of
being a multi-specialist group, in the context of
increasingly volatile markets. We would like to
offer our thanks to all our members who place
their confidence in us, together with Agrial’s
teams which, through their drive, are positioning
the Group in the top 5 of French agricultural
cooperatives.
AGRIAL ANNUAL REPORT 2012 > 3
KEY FIGURES 2012
3.61
billion
euros
This was the Group’s turnover in 2012
Increase in turnover (in million euros)
+ 33%
Increases in the turnover
(in million euros)
3,608
2,715
2,261
2010
2011
2012
Breakdown of turnover by division
Upstream 26%
Milk 30%
This was the increase in turnover
in 2012
Rural
distribution 7%
Farm machinery 3%
Vegetables 20%
Seeds 1%
Beverages 5%
Poultry & Meat 8%
10,000
members
Breakdown of headcounts by division
Upstream 9%
Milk 20%
Rural
distribution 11%
Farm machinery 2%
Seeds 2%
10,000
employees
Beverages 6%
Vegetables 40%
Poultry & Meat 10%
Current income
Net result
Cash Flow
(in million euros)
(in million euros)
(in million euros)
56.7
116.6
46.3
45.4
38.6
2010
34.4
2011
2012
2010
38.4
2011
2012
83.2
87.6
2010
2011
Investments
Shareholders’ equity
Debt
(in million euros)
(in million euros)
(in million euros)
223.1
578
2012
444
488
443
273
251
68.5
57
2010
2011
2012
2010
2011
2012
2010
2011
2012
Analysis by Philippe Galou Chief Financial Officer of the Agrial Group
“
Strong and controlled growth
to bolster the future of the Group
Maintaining our financial equilibrium remains a priority, even after having invested 223 million euros
to support the milk sectors, acquiring new industrial and logistics tools for our agricultural activities,
extending our beverages activities and bringing added value to the Poultry & Meat division.
The operational performance of the Group has enabled us to engage in this programme of
investment by realising 135 million euros of gross operating profit of which 30 million came from
external growth. Improvement in productivity is a continuous process which contributes to this
performance. Overall, the financial situation has remained favourable, allowing us to have a larger
debt level without weighing heavily on profitability.
The relevance of the investments and a good financial structure are contributing to consolidating
the future for the Group and its members.
“
THE AGRIAL GROUP IN FRANCE AND THE WORLD
Agrial's
head
office
N O R M A N D I E
Caen
Laval
Rouen
Le Mans
Angers
Nantes
Tours
United States
of America
les Halles
de la Drôme
THE COOPERATIVE’S TERRITORY
The Cooperative’s territory covers
7French departments
located into four administrative regions:
• Basse-Normandie,
• Pays de la Loire,
• Bretagne,
• Centre.
Manche
Calvados
Ille-et-Vilaine
Orne
It is organised into
Sarthe
14 Agrial regions
Indre-et-Loire
Mayenne
BESSIN BOCAGE
PLAINE CAEN FALAISE
COTENTIN
Valognes
Magny-en-Bessin
CAEN
Vegetables farming sector
Créances
Saint-Lô
CENTRE MANCHE
PAYS D'AUGE
Dairy farming sector
St-Martin-de-la-Lieue
Coutances
Falaise
BOCAGE ORNAIS
Argentan
Cider fruits
farming sector
Ste-Foy-de-Montgommery
ORNE CENTRE ET EST
Ducey
Cattle farming sector
Briouze
MONT SAINT-MICHEL
Eggs farming sector
Poultry farming sector
Ernée
Vivoin
Javené
SARTHE NORD
LE MANS
Loué
Pork pigs
farming sector
Cereals and Seeds
farming sector
Le Grand Lucé
SARTHE SUD-EST
ILLE-ET-VILAINE
MAYENNE
Reignac-sur-Indre
Farming sector head office
Agrial region head office
SARTHE SUD-OUEST
INDRE-ET-LOIRE
THE BOARD OF DIRECTORS
Members of the Board
CHAIRMAN
Arnaud Degoulet
TREASURER
Philippe Connefroy
1st VICE-CHAIRMAN
Bernard Guillard
SECRETARY
Henri Hédouin
2nd VICE-CHAIRMAN
Jean-Luc Duval
THE BOARD MEMBERS
Rémi Bézard
Sonia Boudet-Guth
Richard Boyer
André Gorju
Philippe Potier
Xavier Trincot
VICE-CHAIRMEN
Pierre Hermenier
Philippe Marie
Rémi Pelhate
The other members of the Board of Directors
Jean-Pierre Bourban
Pascal Carreau
Jean-Luc Chéreau
Joël Chevalier
Sébastien Chevalier
Éric Coignard
Hubert de Beauregard
Bertrand Detroussel
Didier Duclos
Jean Gautier
Eric Guellaff
Pascal Jourdan
Pascal Lebrun
Frédéric Lecerf
Catherine Leffray
Éric Lemonnier
Denis Mariette
Jean-Philippe Osmond
Bruno Paynel
Gilbert Pilard
Alain Ramaugé
Jacques Renet
GUEST
Anthony Ameslant
Chairman of the Young Farmers
commission
THE EXECUTIVE COMMITTEE
Ludovic Spiers
Philippe Galou
Patrick Bunel
Michel Mariette
Chief Executive Officer
Group Chief
Financial Officer
Group
Human Resources
Director
Group
Institutional Relations
Director
Louis-Marie
Le Coutour
Christian Clarysse
Franck Malinowski
Managing Director –
Vegetables Division
Upstream,
Rural Distribution and
Seeds Divisions
Mananging Director –
Beverages Division
Patrick Lepelleux
Didier Secoué
Francis Bouju
Milk Division
4
AGRICULTURAL
DIVISIONS
4
FOOD-PROCESSING
DIVISIONS
Upstream
Seeds
• Agricultural supplies
• Animal feed
• Cereals • Eggs
• Cattle • Pigs
• AgrialServices
Multiplication
of seeds:
• Straw cereals
• Maize
• Fodder
Vegetables
Beverages
Production and
packing of
fresh vegetables
Production and
marketing
of beverages
and apple-based
products
Rural
distribution
• Agricultural and
retail distribution of
gardening products
• DIY
• Agricultural inputs
Milk
Farm
machinery
Distribution of
agricultural and
specialist rearing
equipment
Poultry
& Meat
Dairy collection
and processing of
ultra-fresh products
and ingredients
for the foodprocessing industry
• Production,
processing and
trading of poultry
• Processing of
meat
2012 HIGHLIGHTS
2012, the Internation Year
of Cooperatives
Agrial attended the first International Summit of Cooperatives which took place
in October in Québec, as
a member of the Coop de
France delegation.
billion
1
members of
cooperatives
throughout the world
The governance of the Group
Arnaud Degoulet
took over the chairmanship of Agrial from Gilbert
Herpe in July 2012.
Changes in governance
In order to reflect developments within the company, Agrial has
considered its governance in depth to clarify and increase members’
representation within the Cooperative’s bodies. In January 2013, a
first meeting of representatives was arranged to discuss the basics
of this work.
The life of members
Beef farmers
The council for the Beef Farmer
Organisation has decided to
set up a plan for renewing
meat handling plants. To support this, the Cooperative will
provide help for the creation of
5,000
fattening
units
Milk producers
With the creation of Agrial’s Milk Division,
an increase in the share capital of the
producers was proposed. The
subscription would increase
from 2% to 7% over
5 years.
2%
7%
Apple producers
A participative contract has
been set up with members
who produce apples for
processing.
The Cooperative’s
1,500 stockbreeders in Teillé (Sarthe)
The fourth edition of the Stockbreeder Days held in June
attracted about 1,500 members to Teillé in the Sarthe region.
These meetings, which have become unmissable events, are an
opportunity to learn and exchange ideas on the state-of-the-art
techniques for animal and plant production.
developments
Transport management
The Upstream Division launched its
Transagrial project and implemented a
TMS (Transport Management System).
-2
%
km
Logged thanks to the optimisation
of the transport logistics of the
Milk Division
Farm Machinery
The V3PRO subsidiary
has been created.
It is dedicated to
the distribution
of the JCB
equipments and
offers a specialised
After-sales service.
Rural Distribution and Agricultural Supplies
The construction of Agrial’s new logistics platform
in Sarceaux, in the Orne region will allow for the
creation of 30,000 m² of covered storage
and 15,000 m² outdoor storage between now
and 2014.
30,000 m2
of covered storage
Seeds
12
million
euros
have been invested in the construction of a fodder
seed production site in Maresché (Sarthe) in
partnership with RAGT.
Growth in the food-processing industry
Milk
• The merger between Agrial and the Senoble
group, was finalised with the creation of a
company named Senagral, the leader in
ultra-fresh dairy products in DBM nationally
(TO = 500 million, 1,450 employees).
Poultry & Meat
• Agrial has moved closer
to Charcuterie Cosme and
holds 34% of the company
based in the Sarthe region
(TO =
20 million, 115
employees).
• Agrial has invested in Maître Jacques, a
company from the Bretagne region making meatbased products marketed in large distribution
outlets (TO = 40 million, 130 employees).
• Agrial has increased its capital share in Délicelait (65%). The company specialises in the
manufacture of dairy ingredients for agribusiness industrials and catering and confectionery professionals.
Vegetables
• Florette has announced its intention to take
over the French and Spanish businesses of
Bakkavör, a producer of salads, fruits and
ready-to-use vegetables and dressed products
selling in Large-and-Medium-Sized retailers
and catering (4 factories, TO = 130 million,
1,150 employees).
Cambrai
Lessay
St-Pol-de-Léon
Mâcon
Beverages
• Agrial has established a presence in
the United States by buying up Manzana
(TO = USD27 million, 50 employees), a
Californian company specialising in the
production of organic apple-based compotes,
juice and vinegar.
L'Isle-sur-la-Sorgue
Torreilles
Milagro
Noblejas
Iniesta
Torre-Pacheco
V de Canarias
• The Vegetables Division has acquired the
transport company Lubac in the Bourgogne region (TO = 16 million, 76 trucks).
Innovations and product
launches
Farm Machinery
• Agrial’s Machinery
Division launched the
new high-efficiency
GEA Multibox robotic
milking system.
5
1
Beverages
• Loïc Raison and Ecusson ciders
are now available in small 33cl. and
27.5cl. bottles which are handier and
more modern.
boxes
single
robot
• Danao, the answer to a gourmand
breakfast, has launched Danao Multivitamin, a unique recipe named the
best new product in fresh juices in
2012 and “taste of the year 2013”.
Promotional campaigns
and products
Fresh raw vegetables:
• To celebrate its 15th birthday, Priméale aired its
new strap line “When pleasure is at a premium, it
must be Priméale”. with a view to underlining its
vision of vegetable pleasure: a pleasure for the
senses, a pleasure to cook, to taste and to share.
Beverages
• Ecusson has continued to promote its
Rosé cider as an aperitif in women’s magazines.
• Loïc Raison has carried out its 1st national
poster campaign to advertise its cider now available in France in 33cl. bottles.
Ready-to-use vegetables
• Florette has aired two new advertising films:
“Florette, fresh and imaginative salads” in
France and “Bags of Feel Good” in the United
Kingdom. These two adverts give the brand
an air of fun and modernity.
• Créaline has promoted its soups and
purées with three TV adverts highlighting the
products’ taste and freshness.
OVERVIEW
The rising cost
of raw materials
Increases and volatility in the costs of agricultural raw materials:
a continuing trend
T
he volatility in the cost of agricultural produce started
on a world-wide scale towards the end of 2006 and
all the experts agree that it will constitute a structural
element in future years. Following a price explosion in
2007, then an equally brutal slump in 2009, the costs
of agricultural raw materials increased sharply in winter 2011
and then started to rise again from summer 2012.
The current, very tense situation on the agricultural raw
materials markets is the result of structural factors to
which were added, in 2012, cyclical elements, and, notably,
climatic conditions.
A growing demand
for raw materials
The world-wide population evolution and an increasing
demand for a higher standard of living in the emerging
countries are contributing to the growth in demand.
In these countries, traditional food habits are changing
to become more like “western” food consumption, with a growing
taste for dairy and meat products.
The spread of urbanised areas, often to the detriment of the
most productive agricultural land (it is estimated that France is
losing agricultural land equal to the surface area of one of its
administrative department every 10 years), and the programmes
for the development of bio fuel (40% of American maize is used to
produce bio ethanol) are contributing to the reduction of available
resources, especially for food production. As for speculation in the
agricultural commodities markets, its importance is controversial
but its influence on price volatility is not neutral.
+ 2%
This is the annual increase
in agricultural demand for
raw materials as estimated
by the FAO.
Climatic problems are causing
tension in the markets
An historic drought in the United States, with an unprecedented heat
wave causing the loss of almost 100 million tonnes of maize, and also
climatic anomalies in the countries around the Black Sea, sparked off the
rise in cereal and oil seed prices in the summer of 2012.
July
June
2012
2012
+ 60
Per tonne of
wheat
OVERVIEW > The rising cost of raw materials
Soaring prices
In 2012, wheat prices surged in June and July (+ 60/t).
The price of soya meal doubled between January and August 2012 to
reach 560/t and rape cake rose to 310/t over the course of the
summer, a price higher than that of soya meal six months earlier.
600
The price
of soya meal
has doubled
Euros/tonne
Soya meal
500
400
300
Feed wheat
200
100
0
2005
2006
2007
2008
2009
2010
2011
2012
July
Source: La Dépêche/Le Petit Meunier
Increasing production costs
Stock breeders who are very dependent on maize, wheat and soya to
feed their animals have suffered from the increase of the prices of raw
materials from the second half of 2012. However, Agrial’s factories had
planned for this and were able to delay the date of these rises for our
farmers.
Increases in the cost of feed
Comparison 2011-2012
+ 25%
Simple feed
+ 21%
Compound feed stuffs
+ 24%
Pig compound feed stuffs
+ 25%
Adult bovine animals compound
feed stuff
+ 20%
Poultry compound feed stuff
Source: Ipampa, index of average prices of agricultural production
Impact of the costs of feed on production
+ 16
euros
per thousand litres
of milk produced
+ 14
euro centimes
per kilo
of Charolais young
bull carcasses
+ 13
euros
per pig
+ 28%
per standard
chicken
+ 28
centimes
per 100 eggs
According to data supplied by the
economic observatory of Agrial
members, the cost of feed per
thousand litres of milk rose to 126
in December 2011 against 110
in 2011, i.e. an increase of 16
per 1,000 litres
The increase over one year in feed
costs for the fattening phase of a
young Charolais animal is about
14 centimes per kilo of carcass
(420kg of carcass weight from a
300kg live weight grazing calves at
the end of December 2012).
The organisation of Agrial pig
producers estimates the average
increase of a tonne of feed to be
46. This represents an increase
of 13 per large white pig.
The average increase in the cost
of feed as measured by Agrial’s
Poultry groups of farmers for 2012
is of 28% in standard and label
chickens.
Over the whole year, the average
price of a tonne of feed for laying
hens increased by 6%.
The impact on the cost price
is 3.8%, i.e. 28 centimes per
100 eggs.
OVERVIEW > The rising cost of raw materials
Weakened sectors
Agrial supports its members
Faced with this situation, Agrial has put in place various
facilities to help its members to optimise and sustain
their production levels: technical-economic follow-up,
analysis of production costs, purchase offers of feed,
financial assistance etc. Among the feed purchase
offers of feed proposed, the following should be mentioned:
• term purchase offers for full feed and
raw materials which fix supply costs,
• the subcontracted processing offer
which is in the form of a “cereal exchange”: the cereals produced by a
farm are processed into feed via Agrial
factories for later use by the pig unit of
this farm.
In 2012
the subcontracted
processing offer
achieved savings
of 40 euros in the
average feed cost
per sow.
In the beef sector where farmers face the question of
the economics of fattening as opposed to selling, the
business made available financial measures to support the rearing of grazing calves.
With the aim of ensuring the future of volumes and the
supply of slaughtering tools, it has also decided to set
up a plan to renew slaughtering facilities with financial
aid to provide 5,000 fattening units.
The rise in the price of raw materials
has hit hard all animal sectors but to
varying degrees according to types
of animals and sectors. The cattle
and pig breeders have been the
beneficiaries of an improvement in
the economic situation with the average sale price of these types having
increased respectively by 14.5% for
adult bovines and by 11% for pigs
between 2011 and 2012. But in
many cases, these increases have
not been enough, in particular in the
sectors where producers have been
obliged to follow new standards
(for example the “animal welfare”
standards for pigs and laying birds).
In addition, the processing link is not
capable of passing on, in the short
term, these increases downstream of
the sectors. So, the results of slaughtering units have been very adversely
affected in 2012, in particular in the
Poultry and the Pigs sectors where
the impact of the price of feed is the
highest.
Although the situation brings with it
some uncertainty about the future
of some product lines, our regions
possess a major advantage for the
future and competitiveness of animal
production, because of their soil and
climate conditions (fertile land, favourable rainfall etc.) and their processing tools.
OVERVIEW
Agrial’s growth
in Food-processing
A strategic development in food-processing activities to the
benefit of members.
OVERVIEW > Agrial’s momentum in food-processing
A
grial has become one of the top 5 French agricultural
cooperatives as a result of its significant expansion in
the food-processing sector. But this expansion can be
accepted only if it enables the Cooperative’s members
to access stable and cost-effective rights to produce.
As a means to pursue this strategy of growth, Agrial is gradually
constructing a multi-specialist food-processing group on an
international scale.
The Group is basing this on expected shifts in the international agricultural situation:
• capture downstream markets to give members rights to produce;
• reach the critical mass required to increase its market shares and
allow for industrial and commercial optimisation;
• innovate to create value;
• become more international to share the risks and to have a presence
in developing countries.
Capturing markets to give members
rights to produce
Generating outlets for milk producers
This is the approach taken by Agrial’s Milk Division which has been
greatly reinforced since its creation two years ago, by substantial developments in milk processing.
140
million litres
of milk
are processed in
Délicelait’s factory
in the Manche
department.
Délicelait: After taking a minority interest in 2011, Agrial became the
majority shareholder in 2012, of this company specialising in specific
milk-based ingredients for the agrifood industry. In 2012, it processed
140 million litres of milk, of which 100 came from Agrial, an input which
is set to increase in 2013.
“The success of an enterprise depends
on the values of the men and women who
are part of it, contribute to it and share a
common desire to thrive, a sentiment we
pass on to our clients. Délicelait and Agrial
share these values needed to succeed”.
Alain Marie, CEO of Délicelait
Senagral: Agrial created this
company in March 2012, jointly
with the Senoble group. It
specialises in the manufacture
of ultra-fresh dairy products
sold as distributors’ brands:
fromages frais, yoghurts,
crèmes fraîches and milk
desserts.
430
million litres
of milk
are processed
in Senagral’s
four factories
in France.
By strengthening its downstream outlets, Agrial is getting ready for the
end of milk quotas in 2015 by making available to its members well
developed extra rights to produce. It is also an opportunity to position
itself as a major player in milk processing in France and to play a role in
the necessary restructuring of the French ultra-fresh market.
Generating outlets for farmers
Agrial, already present in the slaughtering and processing of poultry, is
expanding its activity to include meat processing, following the acquisition of two food-processing SMBs within the Cooperative’s territory.
The products manufactured by these two new Agrial subsidiaries are
sourced by three main products of its farmers: pork, beef and poultry.
Maître Jacques is a company specialising in meat-based products
for self-service meat departments and for butchery sections in large
retailers: the “special occasion butcher” promotes excellence of taste
Charcuterie Cosme specialises in the manufacture of traditional
products, notably its authentic, award-winning Le Mans rillettes. It has
worked for a long time with Agrial’s pork producers’ organisation, in
quality sectors.
“We work in the
spirit of partnership.
The pigs come from
partners’ production
units close to
our factory and
conform to Cosme’s
specifications”.
60 %
Of pigs
processed by
Cosme come
from Agrial’s
pig producers
Joël Cosme,
Founder and CEO of
Charcuterie Cosme
OVERVIEW > Agrial’s momentum in food-processing
Innovate to create value
The Beverages Division, faced with a slow and regular reduction in
consumption of cider in France, has developed a strategy to win back
the consumer. As the leader in the French cider market, Agrial has revamped its offer in order to revitalise a nationally mature market. Product
innovation and new modes of consumption were the two major thrusts
developed in 2012, accompanied by several communication campaigns
aimed at consumers. Ecusson Rosé cider has shown strong growth in
sales while the small, modern packaging formats of Ecusson and Loïc
Raison brands have been favourably received in supermarkets and has
targeted bars and caterings.
175,000
tonnes
of apples
In addition, Danao, the Group’s flagship brand in fresh fruit juices,
has won over consumers who thought that it was the best innovation
in the fresh fruit range in 2012 and it was awarded “taste of 2013”.
are processed
on average
each year
by Agrial.
Expand into new markets and
facilitate industrial and
commercial optimisation
With Bakkavör,
Florette’s
French volume
will be
doubled
The proposed acquisition by Agrial of Bakkavör’s French and Spanish
business activities via its Florette subsidiary, aims to join two of the
four major players in the fresh ready-to-use vegetable market. This
union will allow Florette to expand into new market opportunities, in
particular the food service industry and into new products such as
snacking. In addition, economies of scale will enable costs to be
reduced, mainly in matters of purchasing and logistics.
To strengthen and expand into new markets is also the idea behind
the planned merger of Agrial’s Milk Division and Eurial, announced
at the start of 2013. This project between two cooperative groups
whose milk treatment businesses are complementary, will enable
us to form the second largest French milk cooperative. A position,
however, which leaves us still trailing a long way behind the leading
European milk processors.
Agrial and Eurial will
collect jointly almost
2
billion
litres of milk
from their members.
Become international to enlarge its market,
share risks and have a presence
in developing countries
Taking into account the size of
its market share in France of
cider and apple juice, the expansion of Agrial’s cider sector leads logically to its looking
for external growth abroad.
This is the reason behind the
acquisition, in March 2012, of
the Manzana company in the
United States. The enterprise
specialises in the processing
of apples into compotes, juice
and vinegar.
By this means, Agrial has gained a foothold in the large
American market with a company which has the same
basic business and with which
commercial synergies should
be evident in time for the
expansion in sales of French
product ranges in the United
States.
The American market has
5 times
more consumers
than the French market
All the Group’s food-processing areas
if they fit in well with the interests of
all its members in the long term,
are dictated by the economy and
by maintaining a good balance
between all the Group’s business interests.
Not forgetting, of course, to meet the
expectations of its clients and consumers
without whom these developments
would not be possible.
OVERVIEW
Agrial supports
sustainable
development
A commitment, sustainability for the company and its members
The Agrial Cooperative has been committed to a policy of sustainability since 2005.
The divisions and activities of the Group have also carried out numerous actions from
the economic, environmental and social points of view. The common objective of these
initiatives is to contribute to the strength of the Group and to respond to the wishes of
ordinary people, consumers and its own employees.
T
he growth in world population and economic expansion
are generating ever greater food requirements. At the
same time, conserving our environment is crucial. The
missions identified within the Agrial Group’s corporate
plan fit in with this logic:
• to meet and anticipate the needs of consumers and clients in the
fields of services and agricultural and food products;
• to create value in order to contribute to the success of the
Cooperative’s members, especially by securing rights to produce;
• to respond to the society’s expectations by developing the
territory.
Among the values it has, the Group is based on the development
of human potential and the logical exploitation of agronomic and
climatic potentials while respecting, or even restoring, natural
balances.
Sustainable
development,
one component
of Agrial’s
corporate
vision
> Territorial involvement
Agrial’s vision for 2020 is based on the construction of an efficient
food-processing group. Its key contribution to economic development
and its capacity to link farmers, consumers and the people within
its territory are the basis of a reference agricultural cooperative in
Western France.
• Under its new name of La MAISON Point Vert, expansion of the
network of stores is helping to maintain economic activity in rural
areas by offering a wider local service. It employs over 1,000 people
within the Cooperative’s territory.
1,000
Employees
within the
Cooperative’s territory
• Its local presence also appears to be essential for the Beverages
Division. The quality attached to the Normandy and Brittany regions
gives it a duty to be involved on a local basis. This is translated by its
involvement in activities such as Breton festivals, festnoz and cultural
events.
OVERVIEW > Agrial supports sustainable development
> Cultivating the confidence and determination to succeed together
• Faced with environmental and regulatory challenges, the Cooperative has initiated an ambitious
training programme for its operational technicians and sales advisers. The objective is that all
employees dealing with phytosanitary products should have gained Certiphyto certification within the
next two years.
• Provide managers training on team boosting: this was the objective of the training course for 250
employees of the Cooperative which finished at the end of 2012. Changes in managerial practices
were highlighted, emphasising the link between the various players in the company
• The Secoué abattoir of the Poultry & Meat Division launched the CAPPE project (“Build and Improve
Constantly Everywhere and Together”) in July 2012. By the end of the year, the results were clear:
improved working and safety conditions, increased production and more efficiency in the chicken
cutting/packaging unit. The approach will be extended to all units in 2013.
• To maintain and reinforce the spirit of enterprise on the part
of its employees, Créaline, a subsidiary of the Vegetables
Division has drawn up a programme of concrete actions.
The setting up of “the work of other sectors” encourages
exchanges between factory employees and administrative
staff. The “versatility” matrix is integrated into the management
of human resources. Innovation is reinforced by numerous
partnerships with technical schools and universities in the
West of France. Finally, parity between men-women is
reaching perfect equilibrium and, within management, there
are even 6 women for 8 staff.
• Agrial is a partner of AFDI (Agriculteurs Français et Développement
International), an association founded by agricultural organizations to
support rural development in various countries over the world. Agrial
especially supports AFDI’s actions taken in the Balkans. In November
2012, it hosted a delegation of technicians coming from Kosovo.
> Contributing to respect for the environment
• On the energy front, Soléco-Florette factories and the cattle feed
factories have increased their energy savings by optimising processes
and so have reduced their consumptions.
Changes to power supplies are also a profitable vector: the feed
factory in Coutances has changed over from heavy oil to gas. With
a better return, the mixed fuel boiler, now powered 100% by natural
gas will enable savings of about 5%, including recycled materials.
The next step: the factory in Fougères in 2013.
• Créaline produces purées and fresh soups. The traditional glass bottle
has been replaced by a plastic bottle which is 100% PET recyclable. As
a consequence, there are less noise, reduced weight for employees and
trucks and a reduction in film used in secondary packaging. Consumers
have been happy with the change: sales have increased by 70%.
5%
savings
by changing from heating
oil to gas achieved by the
Coutances feed factory
Plastic
bottle
100%
recyclable
• Following on in this vein with regard to reducing greenhouse gasses,
the Agrial Group has participated in producing the ADEME guide which is
aimed specifically at agricultural holdings and food-processing companies
which want to reduce their carbon emissions. Full of practical advice,
this guide is based on concrete examples of actions revealed from a
great deal of feedback. The technical guidelines have been drawn up
by including economic factors and evaluating their environmental impact
(water, biodiversity etc.).
• The transport subsidiary of Priméale-AJYR, Inter-Légumes, applied
technical improvements and regulations to make its vehicles more
environmentally friendly. The decision was taken to change 40 tractor units
and to train drivers to drive in a fuel-efficient way. The resulting savings
are expected to be in the region of 5%. The company was praised by the
ADEME for this “CO2 objective” approach.
• With this same aim in mind, SM3 and Elevance have optimised their
logistics and After Sales Service to provide a better service for their clients
and to reduce fuel consumption. The renewal, already started, of its fleet
of vehicles has resulted in a gain of 3 litres per 100 kilometres!
-3
litres
per
100km
• SM3, for the first time, has organised the collection and recycling of
agricultural polypropylene twine. In partnership with its supplier, SM3 is
offering its clients the choice of collecting their used twine to recycle it. In
return, they can buy CyclaFil twine at a reduced price.
• For several years, the beef sector has been strengthening its partnership with McDonald’s and its supplier
McKey. The agro-ecological strategy developed is based
on a network of farmers who test out new practices. Evaluated with indicators, the most efficient of these practices will be offered to the largest number of farmers.
The ready-to-use Vegetables Division has not been
outdone with its Spanish subsidiary Florette Agricola,
being approved in 2012 by McDonald’s as one of its
European Flagship Farms.
“To have been chosen by McDonald’s as part of this
European programme is an important recognition of the
efforts made by the company in
the field of sustainable
development and our
policy of continuous
progress
towards
excellence.”
Jose Maria Garrido,
Florette Spain
“We want to support
our sectors in the progressive
and exemplary development
of agricultural practices
which are environmentally
friendly.
Together with the
cooperatives and farmers,
we are researching the
best practices in order to
reduce the environmental
effects associated with beef
production.”
Delphine Smagghe,
SVP Sustainable Development and
External Relations, McDonald’s
France.
Estelle Petit,
Quality Director,
McKey
OVERVIEW > Agrial supports sustainable development
• The Florette group is committed to the CSR initiative (Corporate
and Social Responsibility) and has formulated four major themes:
1. To promote sustainable agricultural practices with its
salad and vegetables producers.
To actively support the vegetable production sector and ensure
that raw materials come from units which demonstrate they are
using a system of sustainable agriculture.
2. To prepare and deliver salad leaves and ready-to-use vegetables produced using an
environmentally responsible approach. This means significantly reducing the direct impact of its
activities on the environment (for example: zero landfill). In the field of packaging, to study and evaluate
the benefits of an Eco Design Products & Packaging project. Continuous improvement in food security
in the production of salads and ready-to-use vegetables still remains a priority.
3. To encourage Florette’s employees on a daily basis. To lead the project on a long term basis
and obtain the agreement of all Florette’s employees, a relevant governance system will be set up.
All employees will receive training on sustainable development and on the way each individual can
contribute to reaching its goals.
4. To put in place “Feel Good” programmes for Florette employees and local communities.
By setting up a Job and Competency Planning programme for employees, the objective identified
consists of making Florette an employer of choice which enhances each person’s career evolution.
At the same time the “Feel Good” programme will be rolled out within the company and local
communities.
> Strengthening economic efficiency
for sustainable growth
The Agrial Group is continuing to expand in a difficult economic
time. This profitable growth enables us to support a food-processing plan to create added value and sustainable outlets for members. It boosts agricultural production in our territories.
2012 was an important year for the Agrial Group in the matter
of investments. Never have so many projects been realised or
initiated. They are part of a long term sustainable economic performance.
Promoting
a technical-economic
approach
Against deeply unstable
economic conditions,
the technical-economic
approach is a central
tenet, a priority on the
ground with members.
An analysis of data
collected from our partners
confirms the disparate
nature of the results
and the relevance of the
approach. Price volatility
is a new challenge for the
management of farms.
To support them, the
technical-economics
consultants have been
based on the theme of
“how to talk economics
with your member”.
Promoting sustainable and cost-effective agriculture
The Ecologically Intensive Agriculture (EIA) approach is included in the Agrial Cooperative’s
company plan. Its ambitious objective is to improve technical and economic efficiency to produce
more and better while taking full account of the environmental factor. Farmers are conscious of the
environmental and societal challenges which have to be met in current agricultural production. So
they are demanding efficient and proven alternative solutions. The choices identified by the EIA are
to base agriculture on a better understanding of the living world and to use the latest technology
available. The approach applies to agronomy and plants but also to animal production.
8
areas
identified
• Optimisation and preservation
•
•
•
of the soil
Nutrition and protection of plants
Animal health and nutrition
Conversion of biomass
To reach these objectives, three key factors for
success appear essential:
• economic enhancement of production;
• extending the process of innovation;
• developing training.
As an extension of the “global approach”
training validated by the technical-economic
consultants, the operational implementation
of the EIA approach rests on the inventory of
actions already in progress and the emergence
of research needs, the dynamic of a network
of innovating units and the training of members
and technicians. As examples, we could
mention the Dephy ecophyto network for field
crops or leguminous production, the Aquaflore
programme, the development of DSTs (decision
support tools) and alternative solutions, or the
reduction of the use of hormone treatment in
landless farming such as that employed in pig
production.
For the Upstream Milk division, the “Responsible
Milk” approach engaged with the Compagnie
Laitière Européenne (CLE) rests on the same
fundamentals with audits, pilot farms and training for members. With Unilever, the contract
is part of the world-wide programme for sustainable commitments by producers based on
values such as biodiversity.
• Water management
• Equipment and
•
•
agricultural machinery
Rearing sheds
Biodiversity
The EIA chair of enterprises
To assist its members, the Cooperative
has decided to endow an enterprises chair,
created with five other partners.
Led by three cooperatives—Agrial,
Terrena and Triskalia—this chair is devoted
to creating training programmes and
developing research programmes in the
field of Ecologically Intense Agriculture.
They will be delivered in three French
colleges of advanced education:
Agrocampus Ouest in Rennes, ESA in
Angers and Oniris in Nantes. The training
will be aimed at technicians from the
cooperatives but also at farmers who are
members.
With a transversal and collaborative organisation, the appropriation of the approach for more
sustainable agriculture is found within Agrial, in
order to anticipate changes, differentiate itself
and respond to the expectations of farmers and
consumer.
Agrial’s
business
activities
Upstream Division
> Agricultural Supplies
32
> Animal Feed
33
> Cereals
34
> Cattle
35
> Pigs
36
> Eggs
37
> Services
38
Seeds Division
39
Rural Distribution Division
40
41
Milk Division
42
43
Beverages Division
44
Vegetables Division
45
UPSTREAM DIVISION > AGRICULTURAL SUPPLIES
Unstable weather
conditions
Although the economic situation in agriculture in 2012 was
quite favourable, the unstable weather conditions caused
problems for agricultural production. Following a water
shortage over the 1st quarter of the year, periods of rain
followed one after the other, especially in autumn: rainfall
three times more than normal was recorded in October at
the Le Mans station in the Sarthe region.
The turnover for Agricultural Supplies rose to 202 million
euros in 2012, an increase of 5% compared with 2011.
Firm prices for fertiliser
Following the large price increases in 2011 (+30%), the
price of fertiliser increased at a lower rate in 2012 (+4%)
but remains at a high level. The change in the areas under
cultivation for cereals and oil seed rape, the low nitrogencredits measured at the end of winter and the prices of
cereals favoured purchases by our members. In this
context, we followed the market with an increase in volume
of fertilisers of 3%. On the other hand, in spite of a promising market and stable prices, the volume of conditioners
is showing a significant reduction (-15%) compared with
2011 since bad weather conditions have caused spraying
to be erratic this year.
Maximum disease induced pressure
Weather conditions have favoured the development of
diseases, especially on cereal crops. The action levels
recommended by the Bulletins de Santé du Végétal were
reached rapidly and applications had to be re-applied to
reach a sufficient level. Because of this, the turnover in
fungicides showed an increase of 16% and that of the
“crop protection family” increased by 2.5% in line with the
improvement in our market shares, especially in the South
of our territory. Of note also was an increase in turnover on
treatments for vegetable crops (+13%).
The use of decision support tools (DST) continues to
expand with more than 9,000 ha under contract for Atlas
and 40,000 ha identified for the Aquaflore approach. As a
reminder, our objective is to qualify 80% of our members’
plots between now and 2015 with Aquaflore.
A good seed campaign
The volume of seeds sold has increased by 6%. All varieties
have been a part of this rise except for protein crop seeds
where sowing has been on the decrease for 2 years; the
improvement in the cereals market entailed a simplification
of rotation. In cereals, several factors have favoured sales
of certified seeds: an increase in land under cultivation,
quality problems at harvest (damp, levels of germination
etc.), the attraction of genetic progress shown by better
resistance to disease, a dynamic commercial offer. The
tonnages sold have increased by 11% in spite of the
returns made by our members because of the difficulties
encountered at sowing (8% of sales). In maize, the GRAL
approach, whose originality rests on the appreciation of
nutritional criteria by measurements on fistulated cows,
played its part in the increase in a sluggish or even declining market.
The highlights of 2012
• The guiding principle of the business remains the
support given to members in developing their production units. To meet this objective, adapting the skills of
advisers to the technical-economic approach, to the
regulatory framework and, in a more general way, to the
current and future expectations of members, continues.
41 technical-economic consultants gained their Professional Qualification Certificate as technical advisers to
members of the Cooperative. At the same time, following
the reform of the phytosanitary distributor accreditation, a
far-reaching training plan has started; 450 employees are
involved.
• The actions aiming to “produce more and better” are
continuing. The first approaches were outlined at the
“Ecophyto 2018 all involved” symposium last September
held in Caen.
• Building work has started on the logistics platform site
in Sarceaux (Orne). It will be operational in September
2013 and will be devoted in the beginning to supplying
our stores, and to agricultural supplies between now and
2014.
Maintaining proximity and developing exchanges remain
essential links in our strategy. 3,000 members have
taken part in the events offered by Agrial culminating in
the Stockbreeders Days which took place in Teillé in the
Sarthe region.
Breakdown of 2012 turnover (in thousand euros)
Conditioners
9,700
Film-Twine-Various
7,200
Phytosanitary
52,100
Fertilisers
88,600
Seeds
44,600
UPSTREAM DIVISION > ANIMAL FEED
Volumes driven by
cattle feed
In spite of the increase observed in cattle, tonnages in
feed levels dwindled in 2012 at the national level under
the influence of landless production (pigs and poultry).
Production was faced with the surge in the price of raw
materials in the second half of the year.
Agrial closed the financial year with an almost 4% rise
taking into account the increase in its scope following the
merger with the Elle&Vire cooperative.
Agrial, the leader in cattle feed
The 4% increase in business activity is the result of strong
expansion in the manufacture of cattle feed (+10.7%)
which resulted from the good sales performance within
the Cooperative and the arrival of the Elle&Vire members
following the merger. Sales of minerals for cattle rearing
are rising (+8%) especially with a la carte minerals which
enable formulae to be optimised.
The volume sales of poultry for flesh and, in particular,
those destined for label production (+1.2%), also played a
part in the increase.
On the other hand, following the closure of integrated companies, the volumes of pig feed manufactured are showing
a reduction (-5.9%). The reduction in feed for laying hens
(-6.5%) is a result of the application of animal welfare
standards to conventional production which has had an
adverse effect on the business of the rearing houses.
Volume of equine feed presented a good performance
with sales being led by compound feedstuff (+3.5%). The
upturn in sub-contracted rabbit feed has also helped to
produce the positive result.
Once again, the prices of raw materials surged in the
second half of the year. The purchasing policy has enabled
us to neutralise about 40% of these increases at the sale
point.
Actions carried out in 2012
On the ground, supporting members has remained the
central pivot of our strategy. This is shown by the increasing
number of farmers taking part in the Lactoplan and Écolait
groups.
To support and encourage specialisation in production
units, the field teams have been reinforced by key technical-economic consultants specialising in cattle rearing.
In addition, a study of the expectations of large flocks in
animal feed terms has been put in place with the creation
of a pilot group.
In 2012, Agrial obtained the renewal of its accreditation to
dispense veterinary products. This renewal is the result of
a change in organisation which related to the administrative
management of the traceability of products and on the
method of delivery, with a stop on deliveries via the stores.
Following the plan launched in 2011 by the Ministry of
Agriculture aimed at reducing the risks of antibiotic resistance in veterinary medicine, the animal health service has
undertaken to ensure that the prescription process will
be in conformity and has proceeded to a review of procedures. At the same time, actions have been carried out
in rearing to reduce the use of medicative feedstuff.
The work started in 2011 on the performance and quality
of our industrial tools is bearing fruit. The number of claims
by clients has fallen (-20%) giving a ratio of 0.4 claims per
100 deliveries. This emphasis on quality improvement
remains a priority for 2013.
Main Investments
Work on two major projects continued in 2012:
• Continuation of the work already started at the FertéMacé (Orne) site: refurbishment and automation of the
factory process and integration of a cleaning procedure for
cereals received.
• Deployment of new software for managing purchases
and supplies. This concerns a major administrative redesign
of the procedures which accompanied a reorganisation of
functions within the purchasing/supply team.
Breakdown of 2012 sales of feed to members (in tonnes)
Horse
feed
12,200
Simple
feed
64,600
Pig
feed
127,000
Poultry
feed
117,600
Cattle
feed
268,800
UPSTREAM DIVISION > CEREALS
Collections increased
and prices raised
Collections carried out by Agrial in the 2012 calendar year
increased by 11% to 1,484,000 tonnes. Over the first six
calendar months, produce collected from farmers’ storage
rose by 36% to 134,170 tonnes.
The collection of the 2012 harvest up to 31st December
shows an increase of 9% with 1,350,000 tonnes compared
with 1,235,000 from 1st July to 31st December 2011.
The damp conditions prevailing in the spring greatly favoured yields from shallow farmland, whereas in deep ground,
yields were lower than in 2011. The collection of wheat
rose by 9% and that of barley by 30%, but the quality was
poor as a result of difficult harvesting conditions:
re-germination on the earliest plots, average specific
weight down by over one point.
For oilseed rape, the climatic conditions over the year and
the increase in the share of hybrid varieties in crop rotation, produced more consistent yields and the collection
increased by 12%.
As for sunflowers, the difficulties in harvesting depressed
the collection which fell back by over 30%.
Finally, in maize, in spite of the long delay, returns were
at a good level, so as the transfer of silage to grain. This
resulted in a good collection level, equal in tonnage to that
of last year.
Sale prices historically high
Following the first six months of 2012 when the price of
wheat in the long term was bordering on 200/tonne,
prices took off in June-July (+ 60/tonne). The market
then stabilised until the end of the year at around 260
moving within a range of +/- 10/tonnes). For oil seed
rape, prices reached a historic peak at over 500/tonne
before falling back at the end of the year to 470/tonne.
In this context, a large number of Agrial’s members chose
to fix the selling price of their production by taking up the
Cooperative’s fixed price offers. By the end of December,
they had committed almost 85% of the harvest at historically high price levels (average prices of sales per tonne:
wheat 210, barley 200, oilseed rape 475).
Few exports over the first six months
of the 2012-2013 campaign
Sales delivered over 2012 rose to 1,380,000 tonnes
against 1,320,000 tonnes in 2011.
On the world market, France was subjected to competition from Russia in the first six months of the 2012-2013
campaign. This greatly limited the rhythm of exports. This
slow down in exporting had an adverse effect on the activity of our port silo in Caen. However, over the whole of
the 2012-2013 campaign, the Cooperative should make
significant exports in spite of the disparate quality which
will entail stricter targeting on batches of exportable quality.
The strategic thrusts for the sector for 2013
Three strategic approaches have been defined for the next
campaign:
• To re-launch the construction of storage capacity in
those areas where Agrial is weak (reduction of transport
costs linked to the transfer and improvement in the quality
of management of wheat).
• To persevere with the qualitative improvement of wheat in
order to better serve clients on the increasingly demanding
and competitive export outlet.
• To pursue the improvement in commercial sales policy in
a very volatile market, by putting the emphasis on reactivity
faced with price increases.
Breakdown of 2012 cereal collection (in tonnes)
Oil seed rape
132,100
Barley
126,900
Beans and peas
15,700
Oats and
triticale
47,100
Wheat and
hard wheat
953,000
Maize 191,100
Sunflowers 18,600
UPSTREAM DIVISION > CATTLE
A reduction
in production
and healthy prices
French production of adult finished bovine animals fell
sharply in 2012 (-6%) compared with the high level of
2011 and the same tendency can be seen in the whole
of Europe.
This reduced offer raised prices in all categories: the average price of adult bovine animals increased by 14.5%
in 2012 compared with 2011 (source France AgriMer),
following an increase of 8.4% over the previous year.
For young cattle, the reduction in supply was combined
with the buoyancy of livestock exports to Turkey in the
first part of the year. But the increase in customs taxes
blocked this outlet at the beginning of autumn and so
it is very difficult to build a strategy on this market. In
adult bovine animals, prices have been also strong, in
particular for beef breed animals, reaching record levels.
In this category, the sizeable de-capitalisation observed
in 2011 did not occur over this financial year (notably in
spring because of the drought.)
With 149,313 animals sold, the activity of Agrial’s farmer
organisation (FO) of cattle producers fell by 5.9%,
across the board.
Worries about the availability of dairy cows
Although the reduction in business activity of the FO in
young cattle has been relatively limited, this is not the
case in our region where the situation is of concern.
The reduction in the production of young dairy cows
is worsening. This is a consequence of the decision
on the part of certain producers to cease raising 8-day
calves. This trend must be of interest to all operators in
the Meat Division, in particular during a time of difficulty
in sourcing.
A satisfactory level of placing of grazing calves
In spite of an unfavourable situation (increase in charges,
competition in vegetable production, a long and difficult
maize harvest) and after a rather uncertain start to spring,
the situation concerning grazing calves has been fairly
stable year on year. This good performance translates a
real dynamism in fattening in our regions. It is true that
the direction taken by prices for two years has allowed a
level of profitability for production.
cial support available to members for the production
of grazing calves. About 11,000 animals have, in this
way, benefited from these advances for a global sum
of over 5 million euros. In addition, the council of the
OP confirmed the implementation of a specific action
at the beginning of autumn to counter the slow start of
the campaigns for grazing calves. This action which was
limited in time and in the number of animals eligible has
been a real success with members.
The need to review the technical-economic
approach to the production of meat
Over the financial year 2012, the French cattle business
decided to adopt a new support system for production in
the matter of technical-economic approach. To evaluate
performance, train, make comparisons, these are the
objectives of this approach using new tools “Cap Eco”
and “Couprod”, common to all structures which may be
deployed on the ground by our teams.
A plan to modernise meat production facilities
The financial year 2012 was also marked by the launch
of the support system for the creation or extension of
fattening houses. The objective is to create quickly
5,000 fattening pens. This plan, characterised by
support for the rearing space and whose level varies
according to the size of the investment, is an ambitious
programme to ensure continuity of volumes and the
supply of slaughtering and cutting plants of the future.
Breakdown of 2012 activity (in head counts)
8-day
calves
17,931
Young
bulls
54,225
Store
cattle
29,921
Steers and cows
47,236
Increases in cash flow: a long awaited initiative by
production
Whatever its shape, partner funds or “new investor”, the
FO consolidated in 2012 its arrangement to make finan-
UPSTREAM DIVISION > PIGS
Economic
performance
at the heart of
priorities
Three main elements marked pork production in 2012:
• production down whereas it had been growing for
several decades;
• prices up;
• feed costs which are rising with the surge in raw
materials.
Pork production has fallen in most large countries of the
European Union (by -2% to -6%), with the exception of
Spain. In France the reduction has been 2.5% and can be
explained in particular by the worsening economic situation of producers, following several years of crisis and the
introduction of the animal welfare directive. The average
price in 2012 on the Pork Market in Brittany was 1.45/
kg compared with 1.31/kg in 2011 (+11%) but includes
wide variations over the year, linked to fluctuations in the
European offer.
At the same time, producers were faced with a significant
rise in the costs of feed. Between the 1st and 2nd halves
of 2012, the average cost of feed increased by 46/
tonne i.e. 0.15/kg of pork. 2013 started in this unsettled
context related to feed and the fall in the price of pork,
but the situation is expected to improve in the next few
months.
Agrial’s production in decline
The scope of Agrial’s pork business was concentrated
around the members of the FO following the decision to
cease the business activity of the companies Socav et
Porc’ Innov. This naturally resulted in a reduction in production of the FO which sold 780,000 pork pigs in 2012
(-6%), 162,000 piglets and 13,600 cull animals.
In addition, 18,900 breeding animals were marketed of
which a quarter were outside the FO. The performance
of the Gène+ genetic blueprint should be noted and
more particularly of the Youna sow, with almost 30 piglets
weaned per sow.
On the outlet side, 69% of the pork pigs from the Agrial
Pigs FO are slaughtered by the Bigard-Socopa group and
85% of pigs marketed by Agrial are produced within the
framework of a quality line.
Market shares in feed bolstered
The feed business of the Pigs FO represented 198,000
tonnes of reconstituted feed. Although ceasing integrated
production has an adverse effect on sales of the tonnages
of compound feed, Agrial has done better than retain its
market shares with members of the FO.
Teams mobilised to bring buildings up to standard
The Buildings team has been mobilised to support
breeders in bringing their buildings up to the “welfare”
standards for pregnant sows. At the 1st January 2013,
85% of farms were in conformity with the regulation and
6% decided to leave the farrowing business. En 2013, all
units will be in conformity.
In 2013, the work of the farmer organisation, which has
restored its economic performance, will revolve around
three main axes:
• to support the business of 800,000 pigs;
• to help breeders raise the technical-economic performance level;
• to strengthen relations with partner slaughterers in order
to ensure they have a supply adequate to their requirements and to create value for breeders.
2012 breakdown of pigs (by quality sector)
EQC pigs
14%
CCP pigs
43%
Standard
pigs
13%
Whey
pigs
12%
Organic pigs
1%
Label Rouge
pigs
11%
Cosme pigs
4%
Pigs raised on straw
2%
UPSTREAM DIVISION > EGGS
A financial year
affected by
the impact of
the implementation
of rearing standards
A strengthened partnership with the
Société Avicole de l’Ouest
The production of label and organic eggs is marketed
within the framework of the partnership with the Société
Avicole de l’Ouest which manages a packaging centre
near Brécey (Manche). Over the financial year, Avicole
de l’Ouest has made large investments which will enable
it to pursue its commercial development in the growing
markets and which will give our farmer organisation, the
leader in this field, the ability to expand production on
Agrial Cooperative’s territory.
In line with forecasts, the value of Agrial’s Eggs business
fell significantly in 2012: 107 million eggs marketed
compared with 134 million the previous year. Following
two complicated financial years, activity has returned to
growth with a positive result in 2012.
Within the Eggs business, Agrial manages pullet
production. After a very difficult 2011, production
planning has been more consistent. The demand for
pullets for cage rearing is showing a reduction. In 2012,
Agrial marketed 1.160 million pullets compared with
1.031 in 2011.
2013 will be noted for a return to large scale production
which will require vigilance vis-à-vis changes in markets.
We are going to support organic egg producers in bringing their buildings up to standard. The regulation now
requires 6 hens per m2 as against 9 previously (effective
from the 1st January 2014). At the same time, we are
continuing with the work already started with producers
aiming to improve health protection measures in rearing
and technical-economic performance.
Quantities of eggs sold in 2012 (in million units)
French egg production has fallen by 14% in two years
as a consequence of the effect of the application of the
new rearing standards. In 2012, this change had several
consequences:
• a net increase in egg prices. For a short time, the price
exceeded 13 per 100 eggs (Rungis quotation), that is
more than double the average price recorded in 2011.
We would note, however, that production costs also
increased, driven by the rise in the cost of feed.
• an expansion in imports to compensate for the reduction in French production.
In consumption terms, in spite of the price increase,
household purchases continued to rise (+1.2% in
2012). The demand for eggs produced by units using
alternative systems (free-range, Red Label, organic etc.)
is growing and in France and Europe a change-over to
these new production methods can be discerned.
Open air
10.3
Organic
15.4
Standard
35.9
Free range
7
Label Rouge
38.6
The production of standard eggs down
in favour of alternative eggs
Sales of Standard eggs which represent 35.9 million
units are down by 53%, a reduction which can be largely explained by the closure of two units which did not
invest to conform to the new standards. On the other
hand, sales of alternative system eggs increased by
20% with 71.3 million eggs marketed. Over the financial
year, we registered the start of five new units: three Red
Label and two for organic eggs.
UPSTREAM DIVISION > SERVICES
Securing,
developing and
ensuring sustainable
production
The Agrial Services department helps members to develop
their production units.
It helps to ensure that units are up to standard in order,
notably, to meet the regulatory and specific requirements
relating to production and respect for the environment.
The work of the Division concentrates on agronomy,
the environment and the design of buildings. In a fairly
favourable agricultural situation, activity linked to agronomy
has expanded, and has remained stable in the fields of
environment and buildings.
5,900 analyses carried out in 2012
The number of soil analyses increased in 2012. Beyond
regulatory obligations, this is the result of a more
sophisticated approach by farmers who are relying on
better knowledge of the soil and its potential to improve
crops. The piloting and reasoning underpinning nitrogenous fertilisers remains important with 2,940 N-credit
tests carried out at the end of winter and 800 RAMSES
monitors implemented.
The evolution of the Corpen (French Steering Committee
for Environmentally-friendly farming practices) standards
for milk production and the nitrate directive have produced
a need for producers to be reassured on these matters.
Stability of Buildings activity
The technicians in the Services department assist members in drawing up and designing their building projects.
The number of cases remained stable in 2012. On the
other hand, requests are showing an increase at the start
of 2013.
2,950 members trained
Training has always been an important part of the work of
the Services department. The subjects on offer are varied
but the Certiphyto file remained paramount in 2012 with
the requirement for farmers and agricultural employees
using phytosanitary products to obtain their individual
accreditation between now and 2014.
Key figure
3,220
this is the number of members
assisted in 2012
DIVISION > SEEDS
A clearly posted
strategy for
development
2012 was a constructive year made of important
investments, search for partnerships, plans to increase
multiplication capacities.
15,600 ha of multiplication
With 15,600 ha of multiplication, 2012 was the strongest
production year. The surface areas increased over the
whole variety range and the three companies in the
Division. In spring 2012, Centre Sem in Indre-et-Loire
reached a new record for bags with 1,325,000 units of
maize, i.e. 6% of the needs of the European market and
set up a record multiplication plan of 4,060 ha. Overall,
yields were foremost, with, however, qualitative problems
of germination capacity which will increase costs and
losses at the sorting stage.
For forage seeds, the stock has been reabsorbed and
the 2012 production plan is in line with our objectives with
3,700 ha in situ and harvested with Benoist Sem (Sarthe).
Yields are disparate according to variety and marketing in
autumn 2012 was somewhat depressed because of a wet
summer which was unfavourable to meadow crops.
Over 6,800 ha of straw cereals were ploughed (Centre
Sem and Saint-Sylvain). The straw cereal campaign was
notable for harvesting problems, especially in Saint-Sylvain
(Calvados). The heavy rains reduced the germination
rates. This cumulative lower quality at late harvest times
caused delays in processing and delivery to our members
and other clients (Semences de France and Limagrain).
An action plan has been drawn up to improve the level
of service for 2013. In all, Saint-Sylvain and Centre Sem
bagged more than 280,000 quintals of certified straw
seeds, i.e. an increase of 5%, notably on Agrial’s circuit
(+15%).
Search for partnerships
Agrial’s objective is to secure and develop business
activities by, in particular, seeking supplementary and
complementary multiplication contracts.
This has been achieved for forage seeds with the transfer
of multiplication contracts set up in Picardy by the Laboulet
company, in receivership to Benoist Sem. This transfer
relates to 1,400 ha and diversifies our business activity
(fodder and lawn species).
In parallel, we have set up a partnership guaranteeing
production with Semences de France and we have
created, together with RAGT, the Semara company. It will
operate an industrial tool common to the two partners, and
which is, at the moment, under construction in Maresché
(Sarthe). In operation for the 2013 harvest, this tool will carry
out the activities of sorting, mixing and packaging for RAGT
and Benoist Sem, which will keep their own sales activity. It
will be able to manage 8 to 10,000 ha of production which
will make it a tool of European dimensions.
At Saint-Sylvain, the production of hybrid barley is
expanding and we expect to expand production in the
years to come.
As far as maize seed is concerned, Agrial has renewed,
until 2015, the framework contract in force between Sem
and KWS.
Investments to support our expansion
With Centre Sem, a new bagging line was put into
service in August to meet the regular expansion in maize
production and to benefit from multi-use bagging tools. It
enables small packages of cereal units to be produced as
well as the bagging of maize. The area of covered storage
has been increased by 2,000 m2.
At the Saint-Sylvain station, an optical sorter has been
installed. It enables a very high level of sorting to be carried
out, indispensable for the work of certain productions such
as hybrid barley.
2012 breakdown of surface areas
by type of production (in hectares)
Straw cereals
6,300
Maize
4,060
Fodder
5,000
Oil seed rape
320
DIVISION > RURAL DISTRIBUTION
Against a
background of crisis
and unfavourable
weather conditions
The Rural Distribution Division’s turnover for 2012 achieved 273 million euros—an increase of 2.4%. This growth is
explained mainly by the expansion of DIY-materials (+7.3%)
and good growth realised with members.
The extension of the offer stimulates
customer activity
The DIY and gardening markets have been disrupted by
the arbitration of consumption of households in this time of
crisis and restricted buying power. This phenomenon was
worsened by the bad weather which did not favour sales
of garden products.
In this uncertain context, the Rural Distribution Division of
the Agrial Group gained from the line taken since 2006 to
extend the offer to products required for household work
and home decoration.
The demographic changes published since the last census
confirm that there has been significant expansion in rural
areas to the detriment of large towns. The construction
of private houses with gardens in these areas is creating
a dynamic for our three retail brands: Agrial, Point Vert
and La MAISON Point Vert, designed to become local
multi-specialist stores.
Being local reinforces the relationship
with members
Business with the Cooperative’s members in the area of
agricultural supplies and in consumer goods has shown a
significant increase (+6.3%). This performance reinforces
the strategy and networking of the rural area which, on a
daily basis, encourages links with members.
Advantages to pursue steady development
The multi-specialist positioning of our concepts with
agricultural ranges, DIY and gardening is aimed at three
types of clients: the members, craftspeople and retail
customers. This is the strongpoint of our network of
points of sale and we must maintain it. To do this, we
must increase our market shares in DIY and materials by
increasing our offer and by progressively rolling out the
La MAISON Point Vert brand.
Logistics, an essential factor in reinforcing proximity, will
also constitute a lever of development with the opening
of a new platform in Sarceaux (close to Argentan in the
Orne department), in the heart of the Cooperative’s
territory. Started with 18,000 m2 of dispatch area, it will
be responsible for order preparation and deliveries to the
230 stores in the network from September 2013. Finally,
we are acquiring tools which will enable us to introduce new dynamic marketing methods in line with the
expectations of members and clients. The loyalty card
is part of this strategy (140,000 cards in use in 2012)
as well as the development towards a multichannel
approach with the launch of the on-line ordering service
www.agrialpro.com. This commercial site is innovative
in the domain of products and agricultural equipment
because of its “order and collect” system in the
Cooperative’s local stores.
Relationships in stores,
a factor of differentiation
The Cooperative has always affirmed its determination
that each point of sale, in addition to merely selling items,
should remain a lively meeting place. Our network of stores
contributes to the life of rural areas and is a meeting place
for a daily interchange between the agricultural world and
that of the public in general.
The 1,000 employees in our stores are trained to facilitate
this: welcome, friendliness, advice, professionalism are
words engraved in the marketing policy of the Agrial
network. These are essential elements which make us
stand out from other outlets and be appreciated by most
members and clients. This is an advantage in an increasingly tough competitive environment.
Breakdown of 2012 activity (in million euros)
Agricultural distribution
Agricultural
supplies
80
Animal
feed
26.7
Specialised
distribution
166.4
DIVISION > FARM MACHINERY
A market buoyed up
by the good
agricultural situation
The positive outlook in the agricultural situation, in particular
in field crops, and the prospect of the removal of the
provisions for investments have stimulated the French
market for agricultural machinery and rearing equipment.
In this context, the turnover of the Farm Machinery Division
has increased by 11% in 2012. Agrial has taken advantage
of these buoyant markets to strengthen its teams and
consolidate its various offers of after-sales services.
V3PRO, a structure dedicated to the JCB brand
On the national level, the strong rise in sales of new
tractors noted in 2011 has continued in 2012 (+13%). On
this market, SM3 and SAMA showed improvements lower
than the national average but have strongly developed
their activities in other equipment: second-hand tractors,
combined harvesters etc.
The most significant event of the year was the creation of
the V3PRO subsidiary, devoted to JCB and specialising in
farm handling equipment. This activity had formerly been
provided by SM3.
Of note also was the construction of an SM3 dealership
near Mayenne and the renovation of the SAMA site of
Parville in the Eure department.
Elevance developed
the MIOne robotic milking system
After a hesitant start to the year, Elevance’s activity had
recovered well by the end of the year with the arrival of
the MIOne robotic milking system. The market for robots
now represents one new installation out of two in milking
machinery. Elevance has benefited from this favourable
situation, showing a turnover increased by 24%.
The “Multibox” robotic milking system developed by GEA
was warmly received by farmers. To reinforce in 2013
the good start made by this activity, the Farm Machinery
Division has reorganized and reshaped Elevance’s
commercial structure by equipping itself with a specialist
sales staff.
An organisation clarified within the Division
The Farm Machinery Division has taken advantage of the
resilience of the market in 2012 to make its structures
more specialised in order to have distribution networks
more clearly identifiable by its clients and to set up a high
level after-sales services.
It now has four subsidiaries:
• SM3 distributing CLAAS;
• SAMA distributing Massey Ferguson;
• V3PRO distributing JCB;
• Elevance distributing GEA.
Increases in the Farm Machinery Division’s turnover
(in million euros)
91.8
84.3
66.6
2010
2011
2012
DIVISION > MILK
A year full of
alliances and
acquisitions
In the course of 2012, Agrial confirmed its intentions of
becoming a significant player in Milk processing. The Group
consolidated its participation in the capital of Délicelait by
becoming the majority shareholder in this company and it
created Senagral in partnership with the Senoble group, a
company specialising in the production of ultra-fresh dairy
products. These projects will give supplementary rights
to produce to members and prepare for the end of milk
quotas scheduled in 2015. This is also the reason why
Agrial has decided to propose an increase in the registered
capital of members which will increase from 2% to 7% in
5 years. The turnover in 2012 of the Milk Division reached
981 million euros, for a total collection of 1.35 billion litres,
from 3,650 producers, of whom 2,600 were members of
the Cooperative.
Decline in milk production
European milk collection showed a significant growth in the
1st quarter, and then it fell below its previous year’s level in
the 2nd half of the year, as a result, primarily, of the surge in
the price of raw materials, cereals and soya. In France, this
drop was evident in all regions, with a marked reduction in
certain areas.
The price of milk paid to producers fell back by
8/1000 litres on average in 2012, i.e. -2.5%. But the
price rose from August, influenced by the improvement
in the prices of butter and powdered milk. As for the
market in dairy products, it was hit by the global economic
situation and this resulted in a decline in sales of drinking
milk, butter and ultra-fresh products. On the other hand,
world-wide demand, especially from developing countries,
remains constant, a fact that gives hope that 2013 will be
a better year.
In this context, Agrial’s members delivered 961 million litres
which is a reduction of 1.8% compared with 2011, with
a steep fall noted over the summer, underlining the usual
seasonal trend in contrast to the increase observed over
previous years.
Following the reform of volume management and the
confirmation of the abolition of the French Attributed Fiscal
Tax (TFA), Agrial is more than ever responsible for organising
the monitoring of the volumes delivered by its members.
For 2012-2013, Agrial, together with the Bongrain Group,
has decided to apply the provisionary allocation at 4%.
Sustainable milk production
Agrial’s Milk Division has employed several approaches to
contribute to sustainable milk production amongst which
may be quoted:
• ISO 22000 certification for milk collection and Chilling at
the farm;
• the CO2 emission reduction charter for milk collection,
jointly with the ADEME;
• the Responsible Milk initiative with Compagnie Laitière
Européenne (CLE), focusing particularly on the reduction
of the carbon footprint from the milk unit;
• the Unilever approach required by this client from all its
agricultural producers.
Anticipating the abolition of quotas in 2015, Agrial has carried out a survey on milk resources with its members and
producers. The objective of this work is to renew the links
between the technicians from the Milk Division and producers in order to be better prepared for the changes their
units will have to make in the years to come.
2013 prospects
2013 will be devoted to consolidating the assets of the
Milk Division and to preparing for the merger with the Eurial
Group. This proposed merger announced at the start of
2013, would represent an extra collection of 970 million
litres of which 830 million would be cows’ milk and a
turnover of more than 800 million euros.
Breakdown of 2012 turnover (in million euros)
Senagral
654
Agrial
359
Délicelait
77
DIVISION > POULTRY & MEAT
A difficult year
and a lower
but mixed
performance
2012 was a difficult year for Agrial’s Poultry Division with
the cost price of living birds experiencing a sharp reduction
because of the increase in the price of cereals. In spite of
this, the Division remained buoyant by continuing to diversify into the dressing of butchers’ meat with the acquisition
of the Maître Jacques and Charcuterie Cosme companies.
The Poultry Division is now called Poultry & Meat. It has
5 main business activities: the upstream (Poultry Farmer
Organization), the Poultry industry, the Meat industry,
trading and services (livestock and refrigerated transport).
This external growth is at the heart of the rise of 38% in
the turnover which reached 287 million euros in 2012.
The Poultry & Meat Division is producing at the moment
75,000 tonnes of finished products and has a work force
of a thousand people.
The Farmer Organisation’s production increased
Agrial’s Poultry Farmer Organization (FO) is continuing with
its policy of conquering of areas in standard as well as
label production. Activity has increased by 3%, especially
thanks to its label products up by 12%. But the FO’s
accounts have worsened because the increased costs of
feed have not been passed on to producers.
On the technical front, significant gains in productivity have
been made. In the same way, consumer indices have been
improved, thanks to the joint efforts of the farmers and
Agrial’s technical-economic consultants. The plan to give
financial help for the creation, improvement and renovation
of buildings in 2012 has also enabled six new building to
be erected. These actions will be continued in 2013 to
benefit the improvements in the technical performance of
producers.
The Poultry industry sector hit by
the increase in the price of live animals
The slaughtering and processing of poultry are carried
out by the Secoué company and the Socadis company
which specialises in label poultry. The total volume sold
has remained stable from year to year, but business has
been adversely affected by the increase in the price of
live animals, a cost which it has only partially and lately
been able to pass on to distributing clients. In addition, the
pressure of imports which have been increasing for several
years, has not helped the application of price rises wanted
by the French industrials in the sector.
On the industrial level, the investments implemented in
2012 in the cutting plant of Secoué have not yet brought
all their fruits in terms of productivity improvements. The full
return on investments should start to take effect in 2013.
Confirmation of the good performances
in trading activities
The trading activities of the Poultry & Meat Division are
mainly carried out in the Rungis internation gross market.
Our three marketing companies with a presence in the
Rungis poultry hall have seen their sales increase by 6% in
2012 following a 19% increase in 2011.
The Les Halles de la Drôme company which has a more
limited business in the South of France, has confirmed its
marketing revival with its business showing an increase of
48% compared with 2011.
2012, the year of diversification
in meat processing
2012 was notable for 3 major acquisitions:
• François Distribution, a specialist in meat cutting and
distribution to restaurants and hotels in the Paris region,
will create logistics synergies with Avigros.
• Maître Jacques, based in Rennes, has a meat processing
business destined for retail counters and supermarkets. In
2012, the company had a turnover of 40 million euros.
• Finally, the acquisition of Charcuterie Cosme (20 million
euros turnover) adds to Agrial’s Poultry & Meat Division’s
artisanal knowledge in terms of meat processing. In
addition, it strengthens Agrial’s Pigs producer group who,
at the moment, supply 60% of pork processed by the
company.
Breakdown of 2012 turnover
(in million euros)
Producer
groups
75
Meat
industry
69
Distribution
and services
6
Trading
104
Poultry
industry
87
DIVISION > BEVERAGES
Diversification
of the portfolio
The Beverages Division which comprises ciders, apple juice
and fresh fruit juices had a turnover of 162 million euros
in 2012, up by 7% compared with the previous financial
year. The important events of the year were, on one hand,
a very poor apple harvest and, on the other, the acquisition
of a company in the United States, the first overseas one
for the division. This acquisition also enables the Agrial
Group to gain a foothold, for the first time, outside Europe.
A lower apple harvest
Following a record harvest in 2011, the apple harvest was,
this year, hit by unfavourable weather conditions which
affected pollination in the spring as well as the size of the
fruits at the end of the summer. So, the 2012 collection
barely reached the 130,000 tonne mark, a 40% reduction
compared with the previous year. It was the lowest level
for 5 years.
68% of the division’s fruit comes from orchards belonging
to members of the Cooperative. This share has been
increasing on a regular basis for 4 years.
Economic progress shared with producers
The “Apples for processing” Farmer Organisation (FO) has
continued its activities to support farmers: implementing
plans to assist production, financing of equipment,
supporting of irrigation and setting up of alternative systems
to replace the use of phytosanitary products.
With a view to sharing economic progress, the FO has set
up a “participating contract” for members. The price of fruit
is linked to the performance of the Beverages Division. In
its first year, more than a third of the FO’s producers have
agreed to this new contract.
Increases in capacity and successful partnerships
The Beverages Division has launched a programme aimed
at increasing and improving its capacity to process and
store apples and to bring closer together the processing
sites and production zones. Among the actions carried out
in 2012, of note is the installation of an extraction line on
the Theil-sur-Huisne site in the Orne department. A series
of sterile fermenting rooms has also been acquired. It
will be devoted to the storage of apple juice and will be
deployed on three sites in 2013.
In addition, the division has consolidated its partnership
with the Phare Ouest company: all the Breizh Cola range
is now bottled on the Loïc Raison factory in Domagné
(Ile-et-Vilaine).
A partnership agreement has also been signed with Les
Vergers du Pays d’Auge for the manufacture and packaging of artisanal cider.
Finally, taking into account the strong position of the
Beverages Division on the French market, its expansion is
evidenced also by developments abroad. Because of this,
Agrial acquired, in March 2012, the Manzana company
based in California and specialising in the processing of
apple juice, compotes and vinegar. This was an opportunity for the division to expand into a very large market and
to create a bridge head in the United States to export its
French ranges (ciders and concentrates).
Diversification of its portfolio
without neglecting its origins
The cider business currently accounts for less than 50%
of income for the Beverages Division following numerous
diversifications and technical and commercial partnerships
in the fields of fruit juices and sodas. But it is not neglecting
its original business and is continuing with actions for “the
re-conquest of cider”, by innovation and marketing: the
small 27.5 and 33 cl Loïc Raison and Ecusson bottles can
be found in supermarkets and restaurants, bars and cafés,
and the Ecusson rosé cider has been an undeniable hit
with almost 2 million bottles sold over the year.
On the fresh fruit juice market, Danao has launched a multivitamin juice, chosen the best new product in fruit juices in
2012 and “taste of 2013”. Their new recipe has been well
received by the market.
2013 will be a key year in confirming the success of these
new ranges.
Increases in the share of supplies
from the orchards of FO members
41%
33%
2010
36%
2011
2012
DIVISION > VEGETABLES
Continuing expansion
in France and Europe
Agrial’s Vegetables Division is continuing with its expansion
plans in spite of a slight reduction in European consumption since 2007. The weather, very rainy from spring on
in France and Europe, caused disturbance in production
levels. This was especially true of carrots whose price
increased significantly. In this context, the consolidated
turnover for the Vegetables Division increased by 6.7% to
728 million euros. This improvement can also be explained
by external growth in France and Spain.
Priméale increases its geographical portfolio
in France and Europe
2012 saw the continuation of increases in the volumes of
fresh raw vegetables, due mainly to new geographical units:
• The acquisition of Ferpasat, near Valladolid in July 2012
to develop, amongst other things, in the Spanish market
in carrots;
• The taking up of a majority shareholding in La Légumière,
in Brittany in France, via CBC which guarantees supplies
of shallots;
• The signing of a partnership deal with Nanteurop in the
Nantes basin in France, Florette’s historic supplier of lamb’s
lettuce. This was achieved by forming a joint subsidiary,
Nantial. It offers important synergies for the whole of the
Vegetables business (lamb’s lettuce, radishes, baby
leaves).
• Taking a share in the Lubac business to complete the
transport unit within the AJYR sphere of influence, with
Transports InterLégumes.
To accommodate this growth, Priméale’s managerial
and legal organisation has been restructured. The SAS
PRIMEALE Holding now includes the 4 poles of raw vegetables business: Prim’co, AJYR, Vert Frais and Nantial.
Activity and performance are at the forefront of
the raw vegetables business
Priméale marketed 556,000 tonnes of vegetables in 2012,
an increase of 6% compared with 2011, a part of which
is coming from external growth. The early carrot campaign
in the Landes area was exceptional, the result of a delay
in production due to very wet weather in the spring. The
asparagus campaign was also very good, a positive start
to the partnership set up in 2011 with Maisadour within the
Prim’co pole. For potatoes, after a difficult end to 20112012 season, the new campaign started with more solid
prices.
On the marketing side, 2012 was the year for the Priméale
brand. It has developed an advertising campaign around
the idea of vegetables for pleasure with a new tagline:
“When pleasure is at a premium, it must be Priméale”.
Florette is maintaining its volumes and sales
in spite of the crisis
The ready-to-use fresh salads and vegetables market has
increased by 4.6% in value over the whole of Europe. This
“partly-mechanical” growth compensated for a reduction
noted in 2011 due to the E-coli crisis which particularly
affected the German and Belgian markets. The positive
increase in the market is still a result of the heart of the
business that is salad leaves (baby leaves and mixed
salads).
The increase in sales involves both distributers’ brands—
up by 4.2%—and national brands which continue to grow
by 5.7% on average over the whole of Europe but with
differences between countries.
In this context, Florette has maintained its tonnages. The
business sector has been led by the Northern European
countries where it has benefitted from a rebound in the
consumption of fresh vegetables which favoured ranges of
salads, especially duos.
In particular in France, sales in volumes of Florette products
have reached record levels with 13,234 tonnes.
In the United Kingdom, the Florette brand has continued
to grow, attaining 10.7% of market share while across the
distributers’ labels, a move has been made towards more
profitable markets. In Germany, Florette profited from the
increase in consumption following the E-coli crisis of 2011.
With 17% market share, it gained 8 points compared to
last year. On the other hand, sales by Vega Mayor and
its subsidiaries suffered as a result of the worsening
economic situation in Spain where turnover fell by 8%.
In France and Spain, results have improved thanks to a
substantial concentration on optimising industrial and
commercial processes.
>>>
DIVISION > VEGETABLES
To sustain its sales, Florette has initiated two new advertising campaigns in France and the United Kingdom. In
addition, since April 2012, Florette UK and its partner
producers have been involved in a sustainable agriculture
approach which has resulted in their gaining the LEAF
(Linking Environment And Farming) certification. The LEAF
accreditation assures consumers that Florette salads are
grown in line with rules of environmentally-friendly production practices.
The Créaline brand is posting its ambitions
Créaline’s turnover increased by 20% in 2012. It is
particularly due to a change in the packaging of soups
where glass jars were replaced by PET bottles, and
to a well-received television campaign. In addition, the
company is continuing to modernise its processes,
achieving substantial gains in quality and production.
Prospects
Florette set itself the objective of continuing in 2013 to
expand the brand in Europe in order to cause the market
to rise. But the event expected for next year is without any
doubt the finalisation of the draft buyout of the French and
Spanish parts of the Bakkavör group. This project has just
obtained the approval of the French Office of Competition,
the Spanish Authority having already given its agreement in
December 2012.
Increases in the Vegetables Division’s turnover
(in million euros)
628
2010
728
682
2011
2012
Notes
The annual report is produced
by the Agrial Group’s institutional relations management
Photo credits:
© Photothèque Agrial, ©studiodelaroque.com
Fotolia : Adimas, Bizoom, Boyan 1971, Jacek Chabraszewski, Janecat,
Dmitry Naumov, Paulus Nugroho, Tyler Olson, Rvlsoft
Shutterstock : Boyan 1971, Goodluz, Viktor1 - Corbis: Philippe Lissac-Godong
Graphics: Agence Art Terre
Document printed by
– www.groupelecaux.com
On recyclable paper
4, rue des Roquemonts
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www.agrial.com

annual report

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