SUPPLIES

FRENCH ORIGIN AND IMPORTS: A NECESSARY BALANCE TO ENSURE INDUSTRIAL CONTINUITY

Although Saipol always favours the use of supplies of French origin, the company does, in part, resort to the use of imports. Guillaume De La Forest, market analyst at Saipol, explains the sourcing strategy of France's leading oilseed processor.

WHY DOESN'T SAIPOL PROCESS 100% FRENCH SEEDS IN ITS PLANTS?

Guillaume De La Forest: France produces approximately 4.0 million tonnes of rapeseed, and has a crushing capacity of more than 4.0 million tonnes. However, a large proportion of the French harvest is located in the north-eastern area of the country, and this production area is closer to certain German and Belgian crushing plants than to our Saipol plants at Le Mériot or Grand-Couronne. Every year, approximately 1.0 million tonnes of seeds are exported to neighbouring countries. In order to ensure the continuity of French crushing facilities, it is thus necessary to import this million tonnes in compensation.

WHY DO GERMANY AND BELGIUM USE MORE SEEDS FROM NORTH-EASTERN FRANCE?

Guillaume De La Forest,

Market Analyst at Saipol

Guillaume De La Forest: It’s a question of logistics and price! In practical terms, this north-eastern zone is irrigated by a large number of canals that join the Canal du Nord to Belgium and the Moselle, Rhine and Meuse rivers, which are major trade routes. It is easier and less costly for storage companies in these regions to load a single 1,000-tonne barge than to charter 35 lorries. Added to this logistical simplicity is the fact that Germany produces approximately 4.0 million tonnes of rapeseed, but has a crushing capacity of 9.0 million tonnes. This country therefore has a structural deficit in seeds, and gets a large proportion of the seeds from neighbouring countries by paying very high premiums; price is a central element in the strategy of seed suppliers.

WHAT ROLE DO FRENCH SEEDS PLAY IN SUPPLYING THE VARIOUS SAIPOL PLANTS?

Guillaume De La Forest:  Saipol always favours products of French origin and, more specifically, local sourcing. In concrete terms, the Saipol plant at Le Mériot processes 100% French seeds, and its supply zone extends over 350 km to ensure the continuity of the plant. This supply zone overlaps with that of Grand-Couronne, which buys 95% of the rapeseed available in its 150 km collection zone, and must therefore supplement with imports. As a reminder, French crushing plants were built or expanded at a time when France was producing an average of 5.2 million tonnes of rapeseed between 2009 and 2015. Since then, production has risen to an average of 3.8 million tonnes over the last six years. Imports are therefore necessary to ensure the continuity of our French industrial facilities, owned by French farmers.

Collection zones for crushing plants for the French rapeseed harvest in 2023