annual
report
CONTENTS
The message from the Chairman and the CEO
AGRIAL IN 2014
2
4
Key figures
4
The Cooperative’s territory
6
Agrial’s presence in the world
7
The Board of Directors
8
The Executive Committee
9
Key events
OVERVIEW
10
14
Agrial nurtures innovation
14
Agrial cultivates a strong link
with society
20
Agrial assists
young cooperative members
26
AGRIAL’S ACTIVITIES
30
Upstream Division
31
Seeds Division
37
Rural Distribution Division
38
Machinery Division
39
Beverage Division
40
Milk Division
42
Vegetable Division
44
Poultry & Meat Division
46
AGRIAL’S BRANDS
48
AGRIAL ANNUAL REPORT 2014
1
THE MESSAGE
FROM
THE CHAIRMAN
AND THE CEO
«
« Our
multi-specialist
model,
a guarantee
of security
and continuity »
Arnaud Degoulet Chairman
Ludovic Spiers CEO
Innovation and
internationalism,
the driving forces for
Agrial’s development
Agrial has reinforced its position as a major economic player in the West of France in the agricultural
and food-processing sectors. The Group acquired
new businesses and new territories in 2014, enabling it to break through, for the first time, the barrier of 4 billion euros of turnover.
F
or once the agricultural situation has evolved in different ways according to production. Although the
year started with fairly reasonable prices, the subsequent tendency has been downwards. This was the
case especially in the 2nd half of the year for pigs, milk and
cereals although the latter experienced a recovery at the
end of the year. All sectors combined, the price of agricultural products has fallen by 5.5% over one year (source: Insee).
A good performance by the agricultural divisions
Agrial performed well over the whole of the Upstream Division. In plant production, the poor weather conditions in
the summer were responsible for the uneven quality of
wheat but the collection is showing a strong increase, as
2 AGRIAL ANNUAL REPORT 2014
is that of maize. Activity is stable for cattle and
is showing a slight recovery in pigs, contrary
to the national trend. The agricultural supplies
business is in line with objectives and the tonnages of feed are holding up for cattle but are
falling back for others. The land used for seed
multiplication has reached a new record, in
particular for straw cereals and maize. The
Rural Distribution Division is profiting from its
multi-business activities for members and the
public at large and the Machinery Division is
suffering from a market reversal following two
years of strong growth.
tions and international development continue to
be the engines driving the sustained expansion of
the Beverage Division. Finally, the Poultry & Meat
Division reviewed its organization and its product
positioning to conquer new markets.
Once again, Agrial notes the relevance of its multispecialist model and sees it as a guarantee of
security and continuity for the Group.
Agrial formalizes its actions in the field
of CSR (Corporate Social Responsibility)
By reason of its territorial roots, Agrial is a major
economic player in rural areas. It participates in the
Innovation, a strategic element
development of sustainable and efficient agricultural development and is involved in the whole of
The expert centre, in charge of technical and
the food chain from field to fork. Agrial wishes to
economic assistance for memstrengthen all its initiatives to support
bers, concentrated in 2014
sustainable development by integraon rolling out decision support
ting them into its Corporate Social
A return of
tools and implementing the proResponsibility (CSR) operations. A
tein plan. Likewise, land operapreliminary audit was carried out in
tors have been trained to advise
2014, in conformity with the requiremembers about the new common
ments of the French Grenelle II Law
agricultural policy.
which will enable it to identify the
In addition, 2014 was the year for
challenges and the axes of progress
the launch of an approach based
for future years.
on breakthrough innovation, led
by the Innovation – Research &
Results in line with
for members
Development department set up
the forecast
at Group level. This is an essential lever of competitiveness and
The accounts for the 2014 financial
continuity in a world turned upyear show an EBITDA of 159.5 milside down.
lion euros, up 12% compared with the previous
year. The current result is 59.8 million euros, a
Confirmation of the relevance
slight improvement compared with 2013. It reflects
of the multi-specialist model
the good performances of all the businesses with,
however, the exception of fresh raw vegetables
As a result of the merger with the Coralis cooaffected adversely by a very poor market. At the
perative, Agrial has created a 4th dairy basin in
section assemblies and the AGM in May 2015,
Ille-et-Vilaine and increased its collection to 1.73
the Board of Directors will propose that 6.9 milbillion litres of milk. The Coralis dairy which spelion euros be distributed to members in the form
cializes in the production of UHT milk, enables
of interest on members’ shares and rebates on
Agrial to complete its range of dairy products. On
activities.
the first of January 2015, Agrial became the sole
Although the Group’s funds have, for the first time,
shareholder in Senagral whose profitability improbroken through the barrier of 700 million euros,
ved greatly against a background which remains
our most valuable asset is our 12,000 members
difficult. In the Vegetable Division, the year was
and 12,000 employees who trust us. We thank all
uncomfortable for Priméale, but Florette perforof them, they contribute on a daily basis to building
med well, shored up by snacking products in
a large international cooperative group.
France and Europe. In addition, product innova-
6.9
million
euros
AGRIAL ANNUAL REPORT 2014
3
KEY FIGURES 2014
4.2
Record of turnover
(in millions of euros)
3,608
3,901
4,233
billion
euros
This is the Group’s turnover
in 2014
+9 %
201
2
201
3
201
4
Distribution of turnover per activity
Upstream 25%
Vegetables 21%
This is the growth
in the Group’s turnover
in 2014
Rural
distribution 7%
Machinery 2%
Milk 32%
Seeds 1%
Beverages 5%
Poultry & Meat 7%
12,000
Distribution of employees per activity
Upstream 10%
members
Rural
distribution 9%
Machinery 2%
Vegetables 46%
Seeds 1%
12,000
employees
Beverages 6%
Poultry
& Meat 9%
Milk 17%
4 AGRIAL ANNUAL REPORT 2014
EBITDA
Net income
Cash flow
(in millions of euros)
(in millions of euros)
(in millions of euros)
160
135
201
2
45
44
142
117
34
201
3
201
4
Investments
(excluding external growth)
2
201
3
201
4
201
114
2
201
3
201
122
4
201
Equity
Debt
(in millions of euros)
(in millions of euros)
(in millions of euros)
100
705
444
635
78
72
201
578
2
201
3
«
201
4
2
201
3
201
4
2
201
201
428
3
201
459
4
201
Analysis by Yves Jacobs Agrial Group’s Chief Financial Officer
Equity higher than
700 million euros
A new and important stage was reached in assisting and underpinning Agrial Group’s
development. In 2013, we strengthened our financial debt by improving its maturity and
diversifying it. In 2014, we consolidated equity, thanks, of course, to our results being in
line with our objectives but also to the arrival of financial partners into the capital of our
agribusiness holding group, Agrial Entreprise.
50 million euros of additional equity but also extra expertise within our Board of Directors
of Agrial Entreprise are now available for future projects. Group Agrial’s equity has, at
31/12/2014 broken through the barrier of 700 million euros.
«
AGRIAL ANNUAL REPORT 2014
5
THE COOPERATIVE’S TERRITORY
The Cooperative’s territory covers
7departments
Calvados, llle-et-Vilaine,
Indre-et-Loire, Manche, Mayenne,
Orne and Sarthe departments
It is organized into
15 regions
BESSIN BOCAGE
PLAINE CAEN FALAISE
Magny-en-Bessin
Falaise
COTENTIN
Valognes
Créances
Caen
PAYS D'AUGE
CENTRE MANCHE
Saint-Martin-de-la-Lieue
Saint-Lô
BOCAGE ORNAIS
Sainte-Foy-de-Montgommery
Briouze
CENTRE AND EASTERN ORNE
Argentan
MONT SAINT-MICHEL
Ducey
NORTHERN SARTHE
Vivoin
NORTHERN ILLE-ET-VILAINE
Javené
SOUTHWESTERN SARTHE
Chailland
Loué
Le Mans
SOUTHEASTERN SARTHE
Le Grand-Lucé
SOUTHERN ILLE-ET-VILAINE
MAYENNE
Cesson-Sévigné
Ernée
INDRE-ET-LOIRE
Reignac-sur-Indre
PRODUCTION ORGANISATIONS
Milk
Apples for processing
Eggs
Cattle
Cereals and Seeds
Pigs
Vegetables
Poultry
REGION
Agrial regional head office
6 AGRIAL ANNUAL REPORT 2014
AGRIAL’S PRESENCE IN THE WORLD
Agrial
Head
Office
Caen
Rouen
N O R M A N D I E
PRO
Groupe AGRIAL
Rennes
STC
Laval
Le Mans
Angers
Nantes
Tours
United States
of America
Canary Islands
Trade office
AGRIAL ANNUAL REPORT 2014
7
THE BOARD OF DIRECTORS
The bureau
CHAIRMAN
Arnaud Degoulet
1st VICE-CHAIRMAN
Bernard Guillard
VICE-CHAIRMEN
Pierre Hermenier
Pascal Lebrun
Philippe Marie
TREASURER
Philippe Connefroy
OTHER MEMBERS
Sonia Boudet-Guth
Jean-Yves Rissel
SECRETARY
Philippe Potier
2nd VICE-CHAIRMAN
Jean-Luc Duval
THE EXECUTIVE COMMITTEE
Ludovic Spiers
Christian Clarysse
Bertrand Totel
Patrick Lepelleux
Chief Executive Officer
Managing Director
Upstream, Rural Distribution
and Seeds Divisions
Managing Director
Vegetable Division
Managing Director
Milk Division
Franck Malinowski
Didier Secoué
Jacques Renault
Managing Director
Beverage Division
Managing Director
Machinery Division
Managing Director
Poultry & Meat Division
8 AGRIAL ANNUAL REPORT 2014
The other members of the Board
Rémi Bézard
Richard Boyer
Pascal Carreau
Jean-Luc Chéreau
Joël Chevalier
Sébastien Chevalier
Éric Coignard
Didier Duclos
Jean Gautier
André Gorju
Eric Guellaff
Pascal Jourdan
Frédéric Lecerf
Catherine Leffray
Éric Lemonnier
Alain Louvet
Denis Mariette
Dominique Marquer
Jean-Philippe Osmond
Bruno Paynel
Rémi Pelhate
Alain Ramaugé
Xavier Trincot
GUEST
Anne-Sophie Ansel,
Chairwoman
ot the Youth
Commission
Philippe Galou
Yves Jacobs
Patrick Bunel
Michel Mariette
Development Director
Chief Financial Officer
Director of Human
Resources
Director of
Communications and
Institutional Relations
4
AGRICULTURAL
DIVISIONS
4
FOOD PROCESSING
DIVISIONS
Upstream
• Agricultural supplies
• Animal feed
• Cereals
• Pigs
• Cattle
• Eggs
Beverages
Production,
processing and
marketing of
beverages and applebased products
Seeds
Production of straw
cereal, maize and
fodder seeds
Milk
Collection and
processing of
milk into dairy
products and
ingredients
Rural
distribution
Agricultural and
retail distribution
• Gardening
• Pets
• DIY
• Agricultural inputs
Vegetables
Production,
packaging and
processing of fresh
vegetables
Machinery
Distribution of
agricultural and
specialist rearing
equipment
Poultry
& Meat
• Production,
processing and
trading of poultry
• Processing of meat
AGRIAL ANNUAL REPORT 2014
9
THE KEY EVENTS
OF 2014
Developments
in Agrial
> January
The new drying tower at Délicelait’s factory
in Moyon (Manche) comes on stream
With this tool, the company has control over the whole
processing chain, from receipt of the milk to the ingredients and can, in this
way, respond to its customers’ demands for
litres of skimmed milk complete product traceability.
processed per hour
25,000
> June
Florette France Food Service supplies 80%
of McDonald’s requirements for the French
market
Three manufacturing lines for
salad meals have been installed
in the factory located near Perpignan. Florette France Food Service
is characterized by the creation of
solutions personalized for its customers in the catering sector.
The aim is to produce 18 million
bowls of salad per year.
> October
Confirmation of the Agrial-Coralis merger
2,000
Coralis members
The merger which was voted on in June 2014 at the
AGMs of the two cooperatives was approved by the
Competition Authority in October.
It is part of the construction of a dairy cooperative group
capable of responding to the growing demands of international markets. It also enables a territorial project to be
instigated in the department of Ille-et-Vilaine.
10 AGRIAL ANNUAL REPORT 2014
> October
Three new
LA MAISON Point
Vert sites reinforce
the Cooperative’s
local bases
They comprise the
Mr Bricolage stores
in Mayenne and
Château-Gontier in
the department of
Mayenne and Sablésur-Sarthe in Sarthe
acquired by Agrial
and branded LA
MAISON Point Vert.
> December
Agrial becomes Senagral’s sole
shareholder
After having taken a majority shareholding in Senagral in March, Agrial became its sole shareholder. By this means, the Group hopes to continue to
expand in the ultra-fresh dairy business and reinforce its position as a major player in France and
Europe. Senagral processes approximately 400
million litres of milk per year. Its products are, in
the main, sold as retailers’ brands.
> December
Agrial becomes Végam’s sole
shareholder
Following the merger with Coralis,
Végam, a specialist in agricultural supplies, animal feed, cereal collection
and retail distribution, had become
a 49% subsidiary of Agrial. In December, Agrial
became its sole
shareholder
(subject to the
agreement of the
Competition
Authority).
> Over the year
Continued investment by the Cooperative
in agricultural sectors
The Saint-Sylvain seed station in Calvados has been reconfigured. Since
July, the new logistics platform of Sarceaux in the Orne department has
hosted on the one site all agricultural supplies and retail products destined for members and the 230 stores owned by the Cooperative. In addition, the Cooperative is expanding its capacity for grain storage: 10,000
extra tonnes in Drubec
and Chênedollé (Calvados) and 30,000 tonnes
in La Selle-en-Luitré (Ille
& Vilaine).
Sarceaux logistics platform
(35,000 m2 of covered
storage).
Group life
> January
National campaign to promote
agricultural cooperation
Agrial has joined with 600 others cooperatives in
the national campaign initiated by Coop de France
to make the public aware of the role and values of
cooperative agriculture.
Integrated within 2,800 companies, 450,000 farmers and 160,000 employees make up the economic and social
community
comprising
French agricultural cooperatives.
> August
Agrial, official sponsor of the World Equestrian
Games in Normandy
This partnership aims to link rural communities and all
inhabitants of Normandy with this event. Thanks to its
network of outlets, Agrial has become the ambassador
of these Games for the Normandy general public. The
corporate space, in the heart of the Games Village in
Caen and the stands illustrating Agrial’s equine service
serve to acquaint as many people as possible with its
various businesses.
> September
The Secoué company has changed
its name to become Galéo
The company, based in Chailland (53), which has
specialised in the slaughter and processing of poultry
for over 50 years is creating a new dynamic and is
reviewing its corporate plan which will
now concentrate on
differentiation, quality
and customer service.
> September
Increase in equity funds by Unigrains
and Sofipar
The funds raised in equal parts from Unigrains
and Sofipar, a subsidiary of Crédit Agricole,
will enable Agrial to continue its expansion in
France and internationally, in particular in the
dairy and vegetables segments, major strategic areas for the Group. Unigrains and Sofipar
were chosen for their expertise and their ability
to sustain agribusiness projects over the long
term.
50
million
euros
is the amount of capital raised
from Unigrains and Sofipar
AGRIAL ANNUAL REPORT 2014
11
The life
of members
> March
Agrial joins Agrihub,
the agro-supplies purchasing centre
After five years in association with the Union Terres de
France purchasing centre, Agrial has joined Agrihub
which has a turnover of 430 million euros in seeds,
veterinary products and agricultural supplies. The
aim is to create a strong central unit with four other
regional purchasing structures: Catelys, Caliance, Euralis and SeVeal.
> April
Agrialpro.com expands its offer and services
Available to members since September 2012, the internet site agrialpro.com can now be accessed by the general public. Customers can order on line and collect their
purchases from one of the Cooperative’s local stores. The
offer has been increased by over 3,000 products. 5,000
references are offered by “Click and collect”.
> June
The fifth meeting of the Livestock
Producers’ Open Days took place in
Condé-sur-Vire, in the Manche department
It was a great success. It is an unmissable meeting
for members. Technical workshops, conferences
about animal husbandry and pleasant moments of
relaxation were the hallmark of these meetings.
12 AGRIAL ANNUAL REPORT 2014
> August
First meeting of the Grandeur Nature
network
The Grandeur Nature network brings together almost
150 referenced partner farms to test new techniques
or ways of working before they are used on the territory. The results of the first studies carried out regarding
cattle and horse nutrition
were the subject of a presentation to member partners
on the occasion of the official
launch of the network.
> September
Signing at the SPACE trade show of a partnership between Agrial, Coralis, Eurial and
Evolution
Agrial, Coralis, Eurial et Evolution, a group specializing
in animal genetics, decided to set up a technical collaborative project as well as research and development
projects in the beef and goats’ meat segments. These
projects are destined to guarantee milk supplies of a
quality and amount that will benefit processors and farmers. It is also aimed at expanding innovation in the
milk segment.
1,600 members
Came together for the Livestock Producers’
Open Days.
Spotlight
on the Group’s brands
> March
Management control in
France of the Sunny Delight
brand
The Orangina-Schweppes group
has entrusted the Beverage Division with the management in
France of its fresh fruit brand.
The Division was quick to
launch a new flavour - Piña Colada to appeal to teenagers.
> May
Launch of Loïc Raison Cider & Raspberry
The new Cider & Raspberry flavour was successfully
added to the Loïc Raison range of 75 cl. and 27.5 cl.
Five months after its launch, this new product was
already the most successful cider in individual-sized
bottles.
> October
Créaline and Ecusson, award winners of the
Normandy Trophées de l’Agroalimentaire de
Normandie 2015
The new vegetable snacks “Créaline at aperitive time”
and Ecusson’s Cider & Pear flavours were chosen by
the Normandy Awards panel. Each year they make
awards for regional innovations based on taste testing
and consumer analyses.
> November
Normandy Free Range, Galéo’s new offer
The Normandy Free Range poultry was launched in
stores. It offers, in particular, the Normandy IGP Free Range chickens
which carry its quality Label Rouge
logo. In this way, Galéo underlines its pride on belonging to
a region and on the free range
method of farming.
> Over the year
• Florette and its innovations in 2014
Launches of new ranges and products came thick
and fast from Florette. Among the most notable – in
France: Crunchy Baby
Carrots, fresh, practical
and tasty, followed by
Humous vegetable spreads,
Guacamole, Tapenade…
In the United Kingdom,
Florette launched Baby
Kale, young shoots of this
vitamin-filled cabbage. In
Spain, it was bowls of Florette salads which attracted consumers.
• Agrilait, Agrials’ premier brand of milk
Following the merger with Coralis, the Breton brand,
Agrilait, joined with Agrial bringing with it its range
of UHT milk, butter and fresh cream. With 30 years
of experience, it relies on strong values combined with
quality and the strength of its local base.
AGRIAL ANNUAL REPORT 2014
13
Agrial
nurtures
innovation
For innovation which creates values
and is in harmony with the world we live in
14 AGRIAL ANNUAL REPORT 2014
The world is changing
The world of food is constantly
changing; it follows the broad
trends of society: urbanisation,
sustainable development and
new consumer expectations.
What will our food be like in 30
years? How can we feed the planet with diminishing resources?
What tradeoffs will consumers
accept? What will we have to
sell that our competitors will
not have? All questions which
give a meaning to innovation.
In an ever changing world and
a strongly competitive environment, innovation is an essential
competitive lever and therefore
important for sustainability. The
need to adapt, to regenerate, to
be stronger, is vital. Innovation
enables companies to differentiate themselves by new products
and services with higher added
value, to conquer new markets,
to respond ever better to the expectations of customers.
The development of the Agrial
Group is justification that innovation should match its multispecialist dimension. Today, its
size and the nature of its organization enable it to share its resources and expertise between
segments of business.
The breaking down of barriers
and the transversality between
and within the Group’s business
Divisions reinforce its capacity
for innovation. The Divisions,
which are in direct contact with
producers and end consumers,
are the ideal interface for detecting needs and inventing solutions to meet these needs. By
having an input from the birth
to the marketing of the product,
they can introduce innovation at
each stage of the value chain.
in 5 years
50 %
of the working
population will
have been born
after the start
of the Internet
Innovation is involved
from the idea to marketing
Raw
material
Processing
Services
Differentiating factors
leading to innovation
+ rapid
+ qualitative
+ economic
+ reliable
Finished
product
AGRIAL ANNUAL REPORT 2014
15
To innovate
is in
our DNA
Ludovic Spiers
Chief Executive Officer
of Agrial
Assistance
and search
for new talents
Agrial uses private and public
partnerships to uncover and
support external skills. Startups, agencies, research centres,
competitiveness clusters, trade
fairs, conferences… are all ways
of opening up to external talent.
> Competitiveness clusters
«
Since its creation, Agrial has invested in innovative solutions. The Group has always been
determined to seize and use innovation. Our
position as a leader and multi-specialist is spurring us on
to change to a higher gear.
To innovate one must be able to accept trial and error, to
demand discipline, to admit failure, to be open to external
expertise. Agrial can accept all these, thanks to the spirit
of the company. Our two maxims – “sell to produce” and
“strength in unity” also apply totally to innovation.
Today we are making a decisive move by affirming our
position on breakthrough innovation. Breakthrough innovation consists of questioning certainties. This process
leads to the opening up of new markets. It makes its initiator the reference to follow. Using breakthrough innovation, Agrial is determined to meet the new aspirations of
consumers and to strengthen its position as a leader in its
sectors.
A competitiveness cluster is a
source of knowledge, a crossroads of skills. Clusters bring
together companies and skills
which may be national or international, scientific or technical.
The objective is to realise projects with added value, increase
employment and sustainable
development by benefiting from
the sharing of means and expertise.
In the area of food production,
Agrial sits on the strategic planning committee of Vitagora and
on the Management Council of
Valorial, the two national cluster networks for food producers
with international interests. For
agronomy and in the area of
vegetables and plants, Agrial
is a member of Vegepolys and
1st Agrial self-service
farm store
16 AGRIAL ANNUAL REPORT 2014
1st bulk farm-based
blending silo for fertilisers
20
00
19
80
19
70
INNOVATION WITH AGRIAL
1st ready to use
salad
1st pink
cider
Terralia. In the equine sector,
Agrial carries out research programmes accredited by Hippolia. These can be used by the
Divisions within the framework
of specific research.
> Partnership with Inra
A national draft agreement has
just been signed by the chairmen of Agrial and Inra at the
Agricultural trade fair. It details
relationships with Inra researchers to carry out our research
programmes.
netics. Through this partnership,
Agrial hopes to improve the competitiveness of its Dairy farmers.
In addition, the Group has entered into close partnerships with
several start-ups which are
investigating the products and
services of tomorrow. It is also in
contact with other reception and
assistance structures for startups (Vitigora E-Food, “FFWD”, La
Miriade, L’Atelier BNP)...
Over two years,
Agrial has launched
more than
20
programmes
of research and
development
> Some other partnerships
Depending on the problem to
be solved, Agrial also calls on
advanced technical colleges or
universities, which are a rich
source of new skills, ideas and
initiatives. In 2014, the Beverage
Division entered into partnership
with the University of Caen
Basse-Normandie to model forecasts of volumes of harvests
of cider apples, a vital asset for
organising the season.
Another example of partnership:
In September 2014, the Milk Division signed a partnership agreement with the Evolution group,
a union of agricultural cooperatives specialising in animal ge-
Innovation in action
on Agrial’s territory
Agrial’s determination to be involved in innovation is shown by
its commitment in its own territory. Agrial is one of the founder
members of the Normandy Innovation Club known as COIN. This
club is dedicated to the development of relationships between
large companies and start-ups. Its partners from very different
backgrounds confer on common problems: human resources,
logistics, computerisation, energy-saving…
Another aspect of its initiatives relating to innovation: the setting
up by Agrial of the Réseau Grandeur Nature network. A single
network made up of approximately 150 partner and volunteer
farms, to monitor on-site the major agronomic innovations in line
with the specific characteristics of its territory.
sustainability
new
technologies
production
techniques
animal welfare
and health
consumer
health and
pleasure
value of
co-products
methods of
distribution
20
naturalness
??
Agricultural and agri-food areas of investigation
ingredients
AGRIAL ANNUAL REPORT 2014
17
Methodical
trial-and-error
Eric Lesage
Director of Agrial
Group’s Innovation,
Research &
Development
department
«
Innovation requires curiosity, creativity and
audacity. The company needs clarity in order to
plan ahead. How is it possible to combine these
two requirements which are a priori, opposites? By combining curiosity with common sense, creativity with method
and audacity with discipline. This is the keystone of the
organisation set up to lead innovation for Agrial with, in
particular, the creation of an Innovation - Research and
Development (IRD) department within the Group.
The areas of investigation which were formerly centred
on agricultural practices are now much wider. Energy,
genetics, products, processes etc. are now subjects for
innovation. Monitoring is, therefore, an essential link in
the chain of our organisation to identify dangers, detect
opportunities, recognise changes in society, scientific and
technological advances...
Another important element is the defining of the challenges which will determine the finance to be allocated to
research programmes. The objectives of the IRD department are to seek out efficiency and exclusive solutions by
assisting the research committees of the Divisions and by
prioritising shared transverse projects, from idea to launch.
A structured organisation
Agrial Group’s IRD (Innovation,
Research and Development) department provides innovation coordination which is built around 6
research committees: one Group
research committee and five
research committees for the
Divisions (Upstream, Beverages,
Milk, Vegetables, Poultry & Meat).
The composition of these committees
is decided by the directors of the
Divisions.
The Group Research Committee (CRG)
is headed by the IRD department.
Its area of skill covers “futurist”
monitoring by detecting future major
challenges and implementing the
innovative projects involved. The
CRG assists the other research
committees by bringing to bear its
expertise in leading the innovation, by
ensuring transversality, by coordinating
expertise, demands and tenders from
outside contractors, for example.
The Divisional Research Committees
(CRB), monitor developments and
are tasked with identifying and
implementing the innovations in
conformity with the strategy of each
division.
This is supplemented by the work of
the Foresight Commission made up of
elected members of the Cooperative.
THE PROCESS OF BREAKTHROUGH INNOVATION
1 ruthless selection
Regulatory change
in 3 years
Understanding of
the expectations
of consumers
and other people
Scientific and
technical progress
18 AGRIAL ANNUAL REPORT 2014
100
10
ideas
projects
3
1
launches
success
Stages traced and decisions
taken at each step
1
Active watch
Jean-Luc Duval
«
3
Research programme
4
Testing in
real conditions
5
Start of
production
and launch
of the product
The Foresight Commission
to decipher the future
«
2
Vice-Chairman of Agrial
and Chairman
of the Foresight Commission
Qualification and
quantification of challenges
The Foresight Commission was created in 2010. It is
comprised of members of the Board of Directors, the
Youth Commission and regional boards. It is headed
by the Group IRD department. It plays a part in ensuring the sustainability of the Group by monitoring the
maintenance of added value in the Cooperative’s territory. That includes: recognising the real challenges of
the future, making the Cooperative aware of technical
and society changes and exploring the possibilities for
changes in our business activities with the determination to prepare for tomorrow under the best conditions.
It is a place for sharing information, thinking about and
picturing the future. It is a source of proposals for the
research committees. It exists to direct and give its opinion on the relevance of certain projects that it judges
to be strategic.
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9
Extract from the campaign “Agricultural cooperation,
we make the future” initiated by Coop de France.
Agrial cultivates its
strong link with society
Agrial’s cooperative identity
as an engine for its sustainable
development initiatives
20 AGRIAL ANNUAL REPORT 2014
Agrial is reinforcing its actions for sustainable development by including
them in the operation of the companies social responsibilities.
The Group is contributing to the long term success of an efficient
and sustainable agriculture hand-in-hand with its members and is
developing responsible food growing for consumers.
A dynamic economic
player in rural areas
Agrial, which is involved in all
aspects of the food industry, is
a multi-specialised and multilocal cooperative group which
comprises 12,000 farmers and
employs 12,000 people throughout the world. It has about
400 sites in France, mainly in the
North-West. Its businesses have
a strong presence in rural areas
where it contributes to economic and social development,
providing employment and preserving agricultural territories.
Sustainability, proximity and solidarity are Agrial’s values which
are shared by all its members
and employees.
A cooperative
committed, together
with its members, to
sustainable agriculture
The bedrock of Agrial’s economic
model rests on its cooperative
structure and its commitment to
the sustainability of agriculture
and preservation of resources at
all levels. Agrial’s farmer members are at once shareholders,
suppliers and customers of their
company. They own the capital
and manage it democratically,
choosing long-term strategies
in order to increase the value
and security of their holdings.
Agrial’s cooperative governance
puts the members at the heart of
decision-making. This produces a
solid link between them and their
Cooperative which helps them to
increase efficiency of farming.
About
80 %
of staff employed
in rural areas
More than
,000
4
members
Agrial is expanding its expertise
into the fields of technical-economic optimization and long
term management of agricultural
units. Every day, the 330 technicians in the Cooperative share
their knowledge with members.
They provide them with their skills
as well as with information, training and decision support tools.
Thanks to these actions which
result in an agricultural management system which respects
people and the environment,
Agrial can supply its agrifood
processes with high quality raw
materials.
have taken part
in Certiphyto*
training provided
by Agrial
Objective:
Objective:
In 2014:
100 %
100 %
83 % of the Vegetable
of the Milk FO
producers following the
Charter of good animal
husbandry practices*
of the FO’s Label
Rouge poultry farmers
operating without
antibiotics
FO’s land certified Global
G.A.P.* (all crops included)
100 % of land growing
salad crops LEAF* approved
Photo
AGRIAL ANNUAL REPORT 2014
21
Focus on the
support provided
for implementing
alternative techniques
in vegetable
production
Testimonial:
Stéphane Hubert,
who, with his brother
Christophe, has farmed
200 ha on the polders
of Mont Saint-Michel
since 1997
«
The members of the Vegetable FO who supply Florette and Priméale have
used
alternative
techniques on their farms for
several years. Agrial helps
them to implement references such as LEAF and
Global G.A.P., by carrying
out audits and helping with
finances and the adoption
of new techniques.
Agrial is committed to offering
its customers quality products
and services. Innovation is at
the heart of its strategy to continuously improve on its ability to
satisfy consumers’ demands.
At the same time, it guarantees
responsible food processes
from the farm to the delivery of
finished products to its customers.
> Agrial guarantees that food
health and security are respected at every level. Most of the
Group’s food-processing sites
and logistics arrangements
comply with various food quality and security references: ISO
22000, ISO14001, IFS*, IFS Logistics, BRC*, Global G.A.P., Bio
(organic)...
> The fact that Agrial uses locally-based and seasonable raw
produce is an advantage which
meets certain of consumers’ expectations and helps to improve
the credentials of its members.
22 AGRIAL ANNUAL REPORT 2014
«
Quality products and
services for customers
and consumers
These certifications encourage
us to anticipate customers’
expectations. Agrial both challenges us to use new methods and
helps us to respond. When equipment
is modified, of course we have an eye
on the return on our investment but we
now take on board the impact on the
environment and the reduction in the
workload. Apart from possible financial help from the FO, we also look closely at how much we can benefit. This
was the case in 2013 with the partial
financing of our high precision fertilizer spreader which has enabled us to
reduce the amounts of fertilizers we
use by 3 to 4% since 2014 and, above
all to make best use of them.
Iris Logistique
and Interlégumes,
the logistics companies used
by the Milk and Vegetable
divisions are certified IFS
Logistics
Créaline and Priméale
vary their offers throughout
the year with seasonable
vegetables
75% of raw materials processed
by Agrial come from areas less
than 200 km from its processing
plants.
> The Group’s brands also
depend on the quality of the
processes used by Agrial and
its subsidiaries to monitor the
supply of raw materials from its
members and other suppliers.
100 %
of salad leaf producers
For Florette are LEAF* certified
Agrilait
is a brand of UHT milk, cream
and butter, which are all 100%
from Brittany
> The subsidiaries of the Group
seek contact with consumers
to listen closely to them and to
advise them. In 2014, 9 Facebook accounts were created by
Agrial and its brands Florette,
Priméale, Créaline, Loïc Raison,
Maître Jacques, Sunny Delight
and Breizh Cola in France.
Some went further like Priméale
which arranged the Miam Truck
promotion, 10 days of events
open to the general public in five
large French cities to highlight
fresh seasonable vegetables to
use at home.
150,000
« followers »
on Agrial’s Facebook accounts
Agrial at the Le Mans fair in 2014
> The Group and its subsidiaries
are also very involved in the life of
their territorial communities and
teaching establishments. Agrial
plays a part in sponsoring events,
involvement in schools and in
various events open to the public.
It pays special attention to events
which serve to bring together
local people and the agricultural
world as they help to strengthen
social links in the territory.
> Donations of food are made
according to Agrial’s various businesses. Several of the Group’s
companies provide food on a regular basis to charities on national and local levels: Restos du
Coeur, Food Banks, Peoples’ Aid
and several local supportive groceries.
Strong local and
corporate involvement
Agrial is involved in the lives of the
communities and organisations
in its territories.
> Agrial enjoys close relationships with professional agricultural organizations such as the
chambers of agriculture, agricultural unions, professional federations, Coop de France... Agrial’s
board directors and members
hold office in their decision-making bodies. The Cooperative assists them with financial support,
organising discussion and information events, gifts in kind and
even support for events.
> Agrial also supports various
associations which work to help
people with problems to find or
return to work, especially in the
areas of agriculture.
Agrial is committed to
the promotional campaign
dedicated to the cooperative
model in France entitled
“Agricultural cooperation,
we produce the future”
Annual donations:
Over 70 tonnes
of products from
the Vegetable Division
Up to
200,000 litres of milk
and 8 tonnes of butter
from the Coralis Dairy
*Certiphyto deals with regulations, technical knowledge, analytical methods and recommendations to help farmers to develop
their practices in line with the objectives of the national Ecophyto
plan from the Grenelle Environment Round Table and promoted by
French government.
*LEAF (Linking environment and farming) is an international initiative of the eponymous NGO based in the United Kingdom, founded
in 1991 which promotes sustainable management of the farm as a
whole and develops tools for this purpose.
* Global G.A.P. (Good Agriculture Practices), formerly EurepGAP, was
created in 1997 by British distributors to certify that the products they
offered their customers were produced using good farming practices.
*The Charter of good animal husbandry practices is a device to help
farmers improve their practices and respond to the demands of their
partners and the public.
*The IFS (International Featured Standard) and the BRC (British
Retail Consortium) are two standards developed by English, French,
German and Italian distributors.
AGRIAL ANNUAL REPORT 2014
23
Agrial’s relationships with its stakeholders
12,000
Other farmers
and suppliers
of raw materials
members
Suppliers, customers,
shareholders supporting
sustainable agriculture
Cooperative
and agricultural
activities
Collection
Animal feed
Seeds
Suppliers of agricultural
inputs and equipment
Advice
and services
Agricultural supplies
Machinery
Agricultural markets
Other suppliers and services
Other
external
stakeholders
Professional
agricultural organisations
24 AGRIAL ANNUAL REPORT 2014
Administration
Consumers
and customers
Households
Catering
Food processing
Supermarkets
75% of raw materials
locally based
Manufacturers
12,000
employees
Waste
throughout the world
Recycled
81%
Rural distribution
230 stores
Eliminated
13%
People
Research
organisations
Local
and territorial
communities
Recovered
6%
Teaching
Youngsters
Associations
AGRIAL ANNUAL REPORT 2014
25
Renewal of generations:
Agrial assists young
cooperative members
The renewal of the generations is a major challenge
for the agriculture of tomorrow and must guarantee
the continuity of farms.
26 AGRIAL ANNUAL REPORT 2014
The agricultural situation in France
The number of
agricultural units is not
increasing enough to
make up for losses
An influx of young farmers and
replacement of heads of holdings are vital for the maintenance of a dynamic agricultural
sector in our territories. The
number of farms set up has fallen by 28% in France over the
past 15 years, but, for the first
time since 2007, the number of
new farmers has increased. In
total, 13,215 agricultural units
(aided and non-aided) were
identified in France in 2013, 6%
more than in 2012. In spite of
this slight increase, the number of units was not enough to
compensate for the large number of retirements. These also
increased greatly with 17,230
retirements registered in 2013
that is an increase of 21%. Anticipating farmers’ retirements is
a vital element in guaranteeing
that young farmers can set up
reliable holdings.
was 35.5 hectares in 2013, an
amount which is increasing
after several years stagnating.
2 new holders in 3
are younger farmers
Young (40 years and less)
people make up 65% of new
farmers. And, in 2013, their
number increased by 6.2% in
France. Their average age is
29. Women account for one in
three of young farmers, a proportion which has remained
steady for fifteen years.
The main production areas
in these units are, in order
of numbers, dairy farming,
arable, polyculture, livestock
and cattle rearing. The average
area held by a young farmer
In the
Cooperative’s
territory
63%
of new farmers
are young people
Agricultural units set up in Agrial’s territory
In the Cooperative’s territory, the department of Ille-et-Vilaine has
the largest numbers of units with 287 new farmers, followed by
Manche (270), then Mayenne (213). 875 young farmers started up in
2013 representing 63% of all new units, a proportion equivalent to
that of the national figures.
NEW UNITS IN THE COOPERATIVE’S TERRITORY
Total units
MANCHE
164 young farmers
with 270 units
Total young farmers
(40 years old or less)
CALVADOS
114 young farmers
1,722
with 178 units
1,379
ORNE
98 young farmers
ILLE-ET-VILAINE
188 young
farmers
with 287 units
MAYENNE
139 young farmers
with 213 units
1,091
875
with 158 units
SARTHE
110 young farmers
with 166 units
2003
2013
Aided and non-aided units
Source: Observatoire MSA 2013
INDRE-ET-LOIRE
62 young farmers
with 107 units
AGRIAL ANNUAL REPORT 2014
27
«
«
Renewing the generations: A major
challenge for the Cooperative
Agriculture involves, above all, men and women who, in
general, are committed to a career, determined to ensure the
success of their holding and pass this on to the next generation. So, Agrial has a particular interest in them. Young
farmers will create and be involved in the agriculture of
tomorrow. Thanks to their skills and their ability to combine technology, economics and the environment, they will
be the guarantors of innovative, responsible and sustainable
agriculture.
Our young cooperative members are also the life blood of
tomorrow’s agricultural cooperation. Agrial must prepare
them to make their voices heard, to gradually take on responsibilities in our organizations and a recognized place in
our governance. They will be the guarantors of the strengths
around which Agrial is built: proximity, durability and solidarity.
Acting to help set up holdings and assisting young farmers
in general is to ensure our territory’s production potential.
It is to enable our expansion to continue. It is to act for our
future and for the future of all Agrial’s members.
In a concrete way, to assist the young member to make a
success of his holding and improve technical-economic efficiency, we set up in 2001 a specific programme: the Youth
Plan. This voluntary policy forms part of the idea of responsibility to society which Agrial is eager to encourage
with its agricultural members and its economic environment. It also assists in the creation of a territorial dynamic.
Chairman of Agrial
2,622
744
young farmers farmers
assisted since
2001
28 AGRIAL ANNUAL REPORT 2014
benefited from
the Youth Plan
in 2014
270
young
cooperative
members
entered the
programme
in 2014
1
More than
million
euros
set aside for
the beneficiaries
of the Youth Plan
in 2014
PLAN
A scheme to assist
the young
Separate from state schemes
to help new farmers, Agrial
has implemented a specific
plan to help its young members
establish their holdings. The
Youth Plan, which lasts for
a period of three years, includes financial assistance and
personalized help. On the
financial front, the objective is
to help the young cooperative
member build up his or her
capital. Assistance is provided
for the activities of supply,
services
and
agricultural
production. A discount of 2%
on supplies is given. A half is
used to contribute to the young
farmer’s capital. The other half is
given at the end of the year. He
or she also receives a services
grant of 1,200 euros to be used
to obtain technical-economic
services from the Cooperative.
At sector level, help with capitalization amounting to 0.4% over
5 years is offered as a contribution
to cereals, seeds, vegetables,
apples, pigs, cattle and milk.
Finally, the young farmer has the
benefit of a specific individual
follow-up by his technicaleconomic adviser to assist in
improving the technical-economic
efficiency of his/her unit.
A training and events
programme to create
bonds
The Youth Plan also includes
events and training both regionally
and at Cooperative level. Its aim is
to prioritise links and exchanges.
Technical visits, meetings, study
trips… are offered to recipients
throughout the year. A specific
fund has been reserved for these.
In 2005, a Youth Commission was
created, a real link with the Board
of Directors. It consists of forty or
so members who are benefiting
from the Youth Plan (3 to 5 per
region). The current Chairperson
is Anne-Sophie Ansel, from the
Bessin Bocage region.
A commission to give
a voice to the young
A ne
An
e-S
-Sop
op
phi
hie
e An
nse
sel
sel
Our commission is made up of young motivated farmers
who believe in the cooperative model and in the mutualist
spirit in order to develop future projects. We meet 3 or 4
times a year and start the day with a visit to one of the
Group’s units or sites. This enables us to see in a concrete
way the investments our Cooperative is making for our future. The working groups enable us to exchange ideas and
to talk about various subjects linked to questions which the
young farmer member is interested in. Working groups can
be created with very specific themes. The objective of the
Youth Commission is to give a voice to the young. We put
forward proposals to the elected members of the Cooperative. As Chairperson, I am their spokesperson and I sit as
a guest on the Board of Directors. It is very motivating and
interesting to play a part in this dynamic.
Chai
Ch
airwom
rw
wo
om
man
n of the
th
he Yo
Y utth Co
C mm
mmis
i si
sio
on
n
AGRIAL ANNUAL REPORT 2014
29
23
Activities
of Agrial’s
Divisions
Upstream Division
> Agricultural supplies
31
> Animal feed
32
> Cereals
33
> Cattle
34
> Pigs
35
> Eggs
36
Seeds Division
37
Rural Distribution Division
38
Machinery Division
39
Beverage Division
40
Milk Division
42
Vegetable Division
44
Poultry & Meat Division
46
30 AGRIAL ANNUAL REPORT 2014
UPSTREAM DIVISION
Agricultural
supplies
Activity disturbed by the fall in the price
of cereals and milk
Y
ear 2014 was a particularly difficult one for producers because of problems with cereals and milk.
The unusual weather conditions led to an increase
in disease in straw cereals in the spring and affected their
quality in the summer. The turnover of the Agricultural
Supplies Division was over 200 million euros in 2014.
A fall in volume of fertilisers
The reduction noted regarding the Fertiliser business,
-5% compared with 2013, happened in the second half
of the year. Producers were in a “wait and see” situation
because of the fall in the price of oil and cereals.
Following an excellent spring for soil conditioners, the
poor summer weather had a great effect on spreading.
Nonetheless, part of the delay was retrieved in the autumn, giving a slight increase in volumes (+1%).
A good trend for business in seeds and plant
protection products
Since 2010, the volumes of seeds sold have increased by 14%.
In 2014, this volume was produced from about 390,000 hectares with a substantial increase in the proportion of forage
seeds.
In the field of fungicide protection, 2014 was notable for the
amount of disease, in particular yellow rust on wheat which
required special protection. The progress of this disease was
observed, in particular, thanks to the network of the Plant
Health Bulletin of which Agrial is the largest contributor with
100 observers.
The increase in weed-treated areas in the autumn was appreciable and can be explained by a return to more classic crop
rotation and climatic conditions suitable for treatment.
Within the framework of plant protection contracts, 3,600
members benefited from recommendations produced using a
traceability and advice justification tool.
The expert centre and members
- Over 4,000 members had recourse to at least one of the
services offered by the AgrialServices team.
- An action plan aimed at improving the protein content
of wheat was implemented by the agronomic and crop
protection department.
- In order to give members the best advice, 200 land operators were trained in the challenges of the new CAP by
Agrial’s expert centre’s team.
Highlights of the year
- The Livestock Producers’ Open Days were very successful. Over 1,600 members met in Condé-sur-Vire (Manche).
- The deployment of decision support tools is gaining
ground. For example: the number of hectares monitored
by Farmstar has doubled to 15,000 hectares.
- In the framework of our Ecophyto network, the partnership with the Abeille Normande (Norman Bee) continued
in order to measure the impact of different types of honey
bees on biodiversity.
- The Réseau Grandeur Nature (Life-size Network), comprising approximately 150 partner farms, has produced its
first results. The objective of this network is to test out
innovations in real conditions, following rigorous protocols which guarantee the quality of the results obtained.
Distribution of turnover
(in thousands of euros)
Total 2014:
201 million euros
Soil conditioners
9,350
Fertilisers
75,380
Plastic film, twine, other
7,290
Plant protection
59,940
Seeds
48,760
AGRIAL ANNUAL REPORT 2014
31
UPSTREAM DIVISION
Animal
feed
A sector in movement
T
he reduction in the price of raw materials over
2014 led to a fall in the cost of animal feed. The
prices of cereals did, in fact, fall markedly, in particular at the start of the 2014/2015 season before bouncing
back at the end of the year. The prices of proteins followed
the same trend in spite of an abundance of world-wide
production.
Animal health, the need to adapt
The French law relating to the future of agriculture
which came into force in 2014 meant we had to change
our practices in the domain of animal health. Certain
products, formerly distributed by Agrial’s pharmacies,
are now sold by the Selas du Bocage company or by
the animal feed department of the Agricultural Supplies
Division as far as feed for calves is concerned.
New manufacturing tools
in animal feed production
To produce its feedstuff, Agrial’s manufacturing facility
now consists of six factories producing 670,000 tonnes in
volume of which 394,000 tonnes are feedstuff intended for
cattle. Over 100 people in all work at these different sites.
Work is in progress at the Fougères factory where a flat
storage warehouse of 9,000 tonnes came on line at harvest
time. A pile type silo with a storage capacity of 31,000
tonnes and a dryer will complete the unit in 2015. This
arrangement will reduce truck journeys (-1,300 journeys/
year) and so provide an economic and environmental
benefit.
As a result of the merger with the Coralis cooperative, the
Vern factory located in Ille-et-Vilaine joined Agrial’s area.
It produces for its shareholders 180,000 tonnes of feed of
which 140,000 tonnes are cattle feed.
Finally, Agrial and the Sanders Ouest company looked at
the feasibility of sharing a manufacturing tool in Sarthe.
The ASO Nutrition company was created and will produce
feed for both partners on the Champagné site where work
has already started. The site will be on stream from July
2015.
Steady sales of cattle feed
On a like-for-like basis, Agrial’s 2014 business activity in
cattle feed remained constant. It reached 280,000 tonnes,
that is a level equal to that of the previous year, in spite
of high availability of fodder and a reduced demand from
dairy farmers in the second half of the year. They, in fact,
increased the pace of culling cows and reviewed the rations of their animals to adjust their production to their
milk reference, against a fall in the price of milk at the
end of the year. Sales of feed for table poultry are falling, a
consequence of reductions in the production of standard
poultry. The sale of feed for egg laying poultry held up
fairly well. Sales of pig feed showed a fall in line with the
market and equine feed sales are stable. Of note, finally,
an increase in sales of simple feed, fuelled by a market
downturn.
32 AGRIAL ANNUAL REPORT 2014
Distribution of the sales of feed to members
(in tonnes)
Total 2014:
579,150 tonnes
Simple feed
75,300
Cattle feed
280,000
Horse feed
13,300
Pig feed
102,200
Poultry
r feed
108,350
UPSTREAM DIVISION
cereals
Collection up and quality more even
O
ver the 2014 calendar year, Agrial’s collection
reached 1,495,000 tonnes, representing an increase of 12% compared with 2013. There was an
increase of 13% in wheat, 28% in barley, 18% in oil seed
rape and 5% in maize following an already record 2013.
There are several factors which explain this increase:
- an increase of 18% in withdrawals of cereals from storage
members in the first half of the year, that is 109,500 tonnes
as opposed to 92,700 tonnes for the same period in 2013.
- a return to normal of the areas under winter cereals and
oil seed rape which had been affected the previous year by
unfavourable weather conditions. The collection in the second half of the year increased by 12% to 1,386,000 tonnes.
- sizeable carryovers in field areas of maize for silage in favour of grain, and raised levels for these crops.
The Cooperative as a whole was little affected by the sprouting problems encountered in the Centre, East and North of
France following the July rains which fell on mature wheat.
The average Hagberg falling number measured was greatly
in excess of 220 seconds.
Strong world production and lower quality
in Europe
World production of cereals is increasing. Although
consumption is increasing, forecast stocks at the end of
the season are higher. This situation caused the price of
cereals to fall from April (-60 /tonne, April to September 2014).
As for wheat, the serious quality issues encountered in
France and, more widely in Europe, led to a surplus in
fodder cereals and a widening of prices between the use
for milling (domestic or export) and animal feed quality. The difference exceeded 30 /tonne at harvest. The
trend of falling prices was, however, reversed in late September and the cereal markets gained almost 50 euros in
the 4th quarter (growing conditions, political instability
in Ukraine, limitation in the exports from Russia, euro/
dollar exchange rate favourable to European exports…).
Quality strongly influences «physical» prices which can
prove to be very different to the prices on the European
market.
mainly those in North Africa for milling and bread-making.
Shipments from the Caen port silo accounted for 258,000
tonnes or 19% of the Cooperative’s total grain markets.
The strategic aims for 2015
• To improve the protein levels in wheat
The protein plan initiated by the Cooperative in 2014 will
be strengthened in 2015 in order to improve the quality of
wheat and to satisfy, over time, the purchasers in the Mediterranean basin who require milling wheat. It is based on a
varietal choice more targeted towards quality, a more precise monitoring of fertilisation, supplementary payments
for protein content and better management of the silos.
• To continue with the silo plan
Following the investments already made in 2014 in Drubec
and Chênedollé in Calvados and Fougères in Ille-et-VIlaine,
the silo plan will continue in 2015. An extra silo will be built
to expand the facilities of the Fougères factory and planning
will continue to install a silo in the Cotentin region. At the
same time, the training for silo operatives started in 2014
will continue into 2015.
• To continue with the development of Agrial’s Grain
Exchange tool
Launched in 2013, this tool enables members to check the
prices of cereals so as to be able to make decisions concerning cereal prices directly on line with a fixed price. It will
be available as an app from April 2015.
Distribution of collection (calendar year)
(in tonnes)
Total 2014:
1,495,000 tonnes
Miscellaneous 5,475
Maïze 242,800
Sunflower 21,900
Peas and fava beans
10,220
Oilseed rape 118,280
Exports on the increase
En 2014, the tonnage shipped by Agrial showed a slight reduction of 3%, to 1,366,000 tonnes, giving an increase in
stocks at the end of December. For wheat, export sales which
represented only 50% of sales in 2012, passed the 60% mark
for the 2013 and 2014 harvests. The recipient countries are
Oats and triticales
41,870
and
hard wheat
898,900
Barley 155,285
AGRIAL ANNUAL REPORT 2014
33
UPSTREAM DIVISION
Cattle
Aid for producers, a key element
Y
ear 2014 was notable for an increase in France
in the number of adult cattle slaughtered (+1%).
The slaughter of dairy animals is strongly on the
increase, +4%. The rhythm of cull cows accelerated in
the second half of the year because of the advance in the
collection and also because dairy farmers had retained a
maximum number of animals while there was a favourable
dairy situation. This caused a collapse in prices, up to -70
cents compared with 2013. On the other hand, slaughter of young animals fell (-2% compared with 2013).
Although down, the offer easily covered a demand affected by the economic crisis, notably in Italy and Greece,
the competition of European meat on these markets and
limited requirements on the live market (North Africa,
Turkey). This caused a reduction in price ranging from
3% in young cattle to 9% in dairy young cattle. Over this
financial year, exports of cattle meant for fattening to Southern Europe and especially Italy are markedly down, depressing the prices of weanlings at the end of the summer.
Stable FO activity
The overall business activity of Cattle Farmer Organisation is relatively stable with a volume of 141,639 animals marketed by 3,350 producers. The adult beef cattle
business has increased with 44,318 animals. The offer in
adult stock has increased markedly over the second half
of the year, especially in cull cows. As far as young cattle
are concerned, even though there are disparities between
the Cooperative’s regions, the trend is comparable to that
observed on the national level with 49,631 animals marketed. For breeding animals, the lean business is on course
with an increase which brings to 31,355 the number of
animals marketed. The actions taken by the FO, linked
with abundant crops of fodder, have favoured the stocking of weanlings. The veal business continues to reduce,
with 16,335 calves in 2014. The demand by fatteners and
integrators is falling and is adversely affecting prices. It is
becoming very difficult to find a value for small calves of
mediocre quality.
Continuation of the plan
for refurnishing units for young cattle
At the end of 2014, the creation of 2,500 fattening units
for young cattle was confirmed within the framework of
the renewal plan decided by the FO in order to maintain
the potential for fattening in our territory and to encourage the emergence of units of significant size (over 100
34 AGRIAL ANNUAL REPORT 2014
places). As a reminder, the end objective of this plan is the
creation of 5,000 places thanks to finance allocated by the
Cooperative. It will continue in 2015.
Launch of the Cap’Eco operation
In conformity with the Cooperative’s commitment, 2014
was the launch year for Cap’Eco. The mobilisation of the
teams enabled a hundred diagnoses to be carried out and
the creation of a first summary of the production and productivity criteria, a situation in line with the objectives set.
Cap’Eco is a very useful work basis for farmers and technicians. It is the first step required before the creation of a
more in-depth analysis of gross margins. Concerning the
tools used by the FO, the work carried out in 2014 on the
balance sheets of units and the time taken to give dairy
farmers feedback should be emphasized.
Maintenance of production
Each year, the FO allocates finance for organised production. The 2014 budget came to 6 million euros, related to
a total of 12,300 eligible animals. The new investor arrangement alone amounted to half of this finance.
Distribution of animals marketed
(in number of heads)
Total 2014:
141,639 animals
8-day calves
16,335
Store cattle
31,355
Adult cattle
44,318
Young cattle
Y
49,631
UPSTREAM DIVISION
Pigs
Activity maintained in a deteriorated market
T
he situation for pork which was trading satisfactorily
at the start of 2014, deteriorated at the end of January following the embargo by Russia. This outlet for
almost 750,000 tonnes of European pork – 3% of production – was suddenly no longer available, thus upsetting the
balance in Europe. The effect on prices was felt throughout
the year with an acceleration in the second half of the year.
The average basic price for 2014 was 1.327 /kg, down by
13.4 cents/kg compared with 2013.
The reduction in the cost of feed allowed the impact of the
fall in the pork price to be mitigated but the profitability
of production is down. This year has also been marked by
great difficulties in the slaughter sector in France, faced for
the fourth year running with a reduction in pork production.
Recovery in the FO’s production
Unlike the national trend, Agrial’s Pigs Farmer Organisation
saw a recovery in its business in 2014. It marketed 760,581
charcuterie pigs, 12,324 sows and boars and 172,958 piglets.
The FO regained market shares in charcuterie pigs and its
business increased by +1.6% in a market which was down
by -1.4% in the Uniporc Ouest zone. Agrial favours dealing
with local abattoirs, in particular those belonging to the BigardSocopa group which slaughtered 65% of the FO’s production.
In 2014, the feed business totalled 196,723 tonnes of reconstituted feed, a trend which is expanding in our territory. Thanks
to the progress made in the technical field and healthy rearing
and the performance of the Novalia range of feed, the efficiency
of the pig units has increased. This is the result of many meetings, activities and training courses arranged by the teams of
the FO.
Priority for quality lines
The Pigs FO, in partnership with the slaughter and processing companies, is continuing to develop quality lines, synonymous with added value for the breeders but also guarantees
of regular outlets.
85% of the charcuterie pigs of Agrial’s Pigs FO are treated
on these lines. These respond to the needs of specific markets and are adapted to the different types of rearing. Groups
consisting of farmers and industrialists have been formed to
ensure product promotion and development.
The genetic Gène+ for efficiency
In 2014, Agrial’s Pigs FO marketed 17,750 parental and
great-parental breeding stock. The business carried out
with members represents 65% of sales. The Youna strain,
corresponding to 73% of young sows sold to Agrial mem-
bers, is prolific and long-lived. As for Le Piétrain Gène+, it
is recognised for its excellent performance.
Creation of a Young farmers group
The objective of the Youth group, created in 2014, is to improve performance and to develop pig breeding units which
have been trading with Agrial for less than 5 years. Technical
meetings, training and exchanges about innovative projects
have been set up. Over the past five years, 48 young farmers
have set up pig units with Agrial. These units, mainly breeder-fatteners, account for 145,000 animals per year, that is
19% of the FO’s volume.
Focus of work for 2015
• Demedication
The Pigs FO will continue with the work in progress on
the demedication of animals and the fight against antibioresistance. Prevention is at the heart of the work being
carried out by technical and health teams. The actions implemented include: biosecurity, good breeding practices,
the development of alternative therapeutic methods and
monitoring of indicators.
• Energy savings
In order to limit the repercussions of the increase in energy
costs and to conserve the environment, the building
department is placing emphasis on actions which produce
energy savings.
Distribution of charcuterie pigs by quality line
Total 2014:
654,100 porcs
Label Rouge
pork 10%
Compliant pork 17%
Organic pork 1%
Certificated
pork 40%
Calyon pork 5%
Cosme pork 5%
EQC pork 6%
Whey fed pork 16%
AGRIAL ANNUAL REPORT 2014
35
UPSTREAM DIVISION
Eggs
Continuation of the Label Rouge orientation
T
he price of eggs has improved following 2013
which was an especially difficult year for the whole
of the sector. The average index of the TNO (Official National Trend) was 6.20 per hundred eggs, i.e. an
increase of 2.6% compared with the previous year. The
average industrial TNO is 0.80 /kg as against 0.75 /kg
in 2013, an increase of +6.7%. Although the potential for
egg production in Europe is down by -2.7% for the first
eleven months of 2014, after an increase of 6.2% the previous year, the situation is a little different in France. Production in our country increased again and it has become
the leading producer of eggs in Europe ahead of Germany.
French production is set to reach 12.7 billion eggs. The
hatching of pullets, over the same period, showed an
increase of 2.6%, a fact which reinforces the production
potential for the coming months. This development is not
without risk since the supply-demand balance remains
fragile.
As far as the cost of animal feed is concerned, after having
reached a historic level in 2012, it has shown a tendency,
since 2013, to fall and this was confirmed in the second
half of 2014. However, the end of the year was marked by
an unexpected turnaround which illustrates the volatility
in the raw materials markets.
Stability in the pullet business
The pullets business is relatively stable with 740,000 pullets marketed. However, the production of floor raised
pullets is tending to increase with the rearing houses installed over the course of 2013. For cage rearing, the economic conditions have improved although at the start of
the year, the rate of occupation was still insufficient.
Highlights for egg producers
The egg producers met on various occasions in 2014:
- Open days for a new Label Rouge unit,
- Technical meeting with the objective of optimising
rearing efficiency,
- visit to the Avicole de l’Ouest packaging centre
located in the South Manche area,
- Visit to the market of Rungis.
Distribution of egg volumes
(en millions)
Total 2014:
110 million eggs
Development of farms in alternative mode
Business activity in 2014 was 110 million eggs sold and
this is a reduction of 11 million eggs compared with 2013.
The particularity of this activity is the very large proportion of rearing units using alternative production methods,
Label Rouge and organic (65%). This year, the production
of Label Rouge eggs, the prime production of the grouping, has increased by 7% or 47 million eggs marketed.
Over the financial year, two units producing Label Rouge
products were created. These two units were created
within the framework of our young farmers initiative. Our
expansion is led by the requirements of the packaging
plant of Avicole de l’Ouest.
At the same time, standard production fell by 14 million
eggs because of the problems of raising hens in buildings.
The business in organic eggs has not followed the market
trend because of the upgrading of buildings dating from
before 1999, but the situation will be resolved in 2015.
Since 2013, part of the production of the Label Rouge and
organic grouping has been marketed in the Bleu Blanc
Coeur sector whose speciality is feed with added Omega 3.
In 2014, more than half of the organic units of the grouping was involved in this type of production.
36 AGRIAL ANNUAL REPORT 2014
Standard 29.2
Units
using
alternative
methods
Label Rouge 47.2
Floor 10.1
Organic 16.5
Free range 7
Seeds
DIVISION
A record production plan
W
ith 16,960 hectares of multiplication in 2014,
Agrial’s Seeds Division produced its strongest
production programme, up by 6% compared
with 2013. The large investments made over the past years
in all the stations and the professionalism of the seed producers enabled this production plan to be successfully followed through.
Increase in straw cereal hybrids
The surface areas given over to straw cereal seeds rose to
7,470 hectares, an area never attained before, an increase
of 11% compared with 2013. Although self pollinating
production has increased slightly, the increase relates
mainly to hybrid barley and wheat, a development which
is occurring widely on a national level. These seeds are,
in the main, received in the Saint-Sylvain unit which was
reconfigured in 2014: a doubling of the storage capacity,
installation of a new treatment/packing tower, the installation of a bagging line and modernisation around the
product flow. This work, started at the beginning of the
year, was completed in a harvest period. Overall, at the
Centre Sem (Reignac-sur-Indre) and Saint-Sylvain centres,
bagging of straw cereals reached 260,000 quintals compared with 300,000 quintals in 2013. The reduction in
business activity is appreciable in the long channel made
up of external customers, a consequence of the reduction
in the price of cereals having had an impact on the fall in
cultivated land.
First season for Semara
in forage feed
Against a relatively sluggish market in France, land used for
the cultivation of forage feed and harvested by Benoist Sem
amounted to 4,860 hectares in 2014, an increase of 8% compared with 2013. The increase in land under cultivation can
be observed both in the historic production zone centred on
the Sarthe region and in Picardy where Agrial relaunched the
network acquired in 2012 from Laboulet.
The seeds station located in Maresche (Nord Sarthe) and developed by the Semara company, a subsidiary of both Benoist
Sem and RAGT, had its first full year of working. Although it
did not reach its optimal production level, 97,000 quintals
were sorted and 86,000 quintals (pure and mixed seeds) were
bagged.
Saturation of the Centre Sem unit with maize
In France, the surface areas given over to maize seeds
reached a new level this year with 93,000 hectares compared with an average area of 55,000 hectares over the past
ten years. This increase responds to a strong increase in
demand and the need to rebuild stocks.
The Centre Sem production plan followed this tendency:
4,470 hectares have been prepared, a new record following
the already high level of 2013. Thanks to favourable weather conditions, yield and quality are at a high level. The
warm and dry autumn weather enabled the harvest to be
carried out in very good conditions to assist in optimum
reception, drying and calibration.
Because of these good production conditions which were
general throughout France and Europe, the objective of
the seed producers to rebuild their stocks should be attained. A fact which suggests a reduction in production plans
of maize seeds for the 2015 harvest.
Distribution of areas for multiplication
(in hectares)
Total 2014 :
16,960 hectares
Straw cereals
and oil seed rape
7,630
Maïze
4,470
Fodder
4,860
AGRIAL ANNUAL REPORT 2014
37
Rural
distribution
DIVISION
Economic efficiency in the limelight
T
he business of rural and retail distribution has
been affected by the weak growth of markets
together with a reduction in household confidence and consumer behaviour. However, the Division’s turnover remains stable at 277 million euros.
It has grown by 1.7% for sales to the general public,
notably in the gardening sector (+4.8%), a sector
which benefited from the favourable weather in the
spring. It is also steady in the DIY market (+3.9%) but
the crisis which is affecting the building sector has an
impact on the materials business whose turnover is
showing a slight fall (-1.5%).
With a growth of +3.9%, the agricultural departments
are improving with agro supplies remaining consistent
and stable. These figures confirm the demands of
members for locally based services, the prime vocation
of the Cooperative’s network of stores.
With an average of 3,000 unique visitors per month, this
site, an addition to the physical network of stores, provides
a first contact to check on items and whether they are available in store. A new phase of development has now been
introduced to increase the offer and make it available with
a single click over the whole of the Cooperative’s territory
at the nearest location to members.
This innovation, based on the Internet, is part of the
development of distribution in France and the preparation of new models which bridge the gap between physical presence and the development of e-commerce. Agrial
embraces these changes while committing itself never to
move away from two fundamental values synonymous
with success: proximity, with a store less than 20 km from
each member and inhabitant of the territory and the relational with a welcome, friendly approach and ability to
advise, recognized and practised by each of the 1,200 employees of the network.
The distribution sector
has problems in France
2014 was marked by regroupings in the specialised distribution sector and the emergence of economic difficulties
for certain brand names (in hardware, for example) with
sometimes unexpected social programmes.
The increase in the offer of the Agrial network over 5 years
has enabled the economic model of the Rural Distribution
Division to be strengthened. In a delicate general context,
the economic performance of the Division crossed a new
threshold in 2014. This positive dynamic will allow the
Division to invest, modernise and expand its number of
stores as well as continuing to extend its market shares by
external growth.
In 2014, three large DIY stores were opened in Sablesur-Sarthe in Sarthe, Mayenne and Chateau-Gontier in
Mayenne. They were all under the brand name LA MAISON
Point Vert. The stores in Vitre in Ille-et-Vilaine and Sartilly
in Manche were relocated and enlarged.
The «connected» store,
a direction for tomorrow
Two years ago, to strengthen its performance dynamic, the
network entered the digital universe and the Internet. An
e-commerce site, agrialpro.com, based on the «click and
collect» method was deployed. The target market for this
new tool covers all the requirements of agricultural units.
38 AGRIAL ANNUAL REPORT 2014
Breakdown of turnover
Total 2014:
277 million euros
LISA 61%
DIY
materials
20%
Agricultural
supplies
39%
Gardening
pet care
33%
Agricultural
equipment 8%
Machinery
DIVISION
Downturn in the market
T
he Machinery Division achieved a turnover of
98 million euros in 2014. This is a reduction of
10% compared with the record of the previous
year, in a market which has been falling month by month
since the end of 2013.
Return to a normal market level
Following three years of vigorous growth, the agro-equipment sector has experienced a decline in line with market
demand. The reduction of 25% in sales of new tractors
in 2014 is one illustration of a situation which reflects a
return to normal following an exceptional year rather than
a collapse of the market. The reduction in the prices of raw
agricultural materials, allied with «over equipping» in certain units, have made farmers more reluctant to purchase.
In the area of livestock farming, the market in robot milking units has remained stable at 55% of the number of
new installations registered in 2014 and 70% of investments in value in milking equipment.
Strong business resilience
Faced with this overall reduction in the market for agricultural equipment, Agrial’s Machinery Division has, on
the whole, fared better in 2014 compared with the sector
as a whole. Cattle rearing and associated activities which
play a large part in the key regions of SM3, V3Pro and
Sama, have, in fact, been less affected by the reduction in
investment than have arable areas. In addition, the diversification of product offers has contributed to mitigating the
reduction in the Division’s turnover.
The dairy livestock equipment business, managed by Elevance, recorded a reduction in the growth in orders for
new units which, in spite of everything, remain up by
2.4%. These are still led by orders for milking robots.
For its part, Elevance completed the construction of its building in Valognes in the north of the Cotentin Peninsular and
reorganised its premises in Etrelles in Ille-et-Vilaine.
In addition, Elevance has renewed its open-days operations
in several milk producing units to illustrate under real conditions the robots, autorotors and conventional milking machines that it offers. And the «Farm Cooling» service started
in 2013 which offers tank maintenance services, has reached
its cruising speed.
Finally, the Division continued with its training programme
which involved 5% of the total payroll in 2014. Training
concentrated on SM3’s new computerised tool and the new
technologies for the depollution of engines belonging to the
latest ranges of motorised equipment.
Initiatives to preserve the environment
In 2014, the Division expanded and renewed contracts
with certificated recycling companies with regard to batteries and used oil. It also reviewed the collection of used
twine and continued to modify its fleet of service vehicles
in order to reduce fuel consumption.
For 2015, most of the manufacturers and dealers questioned are expecting another reduction in orders but the sector continues to take on new staff, proof that confidence
remains stable. In this context, the Machinery Division is
consolidating its position and is continuing to strengthen
its network in order to improve the proximity of its service.
Record of turnover
(in millions of euros)
110
Customer Service - the heart of our business
In 2014, the various units in the Division expanded their service business in order to improve the service and assistance
available to clients, carrying this out especially by increasing
their proximity in their territories.
SM3 strengthened its position in the Orne department with
the opening of a new Claas service centre in Dompierre and
re-opening a previous Claas agency in Tichebray.
Sama extended the territory of its Massey Ferguson dealership
in the north of the Orne department by opening a service
centre in La Ferte-Fresnel and Sama’s site in Mortrée in the
Orne department expanded by taking over new premises.
92
2
201
3
201
4
201
AGRIAL ANNUAL REPORT 2014
39
Beverage
DIVISION
Diversification in France and internationally
T
he turnover for Agrial’s Beverage Division increased
by more than 13% in 2014 and reached almost
200 million euros and this in a difficult economic
and unfavourable weather situation. Innovations in cider
and juices were largely responsible for good sales by the
Division in France and internationally. The plan to optimise manufacturing performance, started in 2013, is now
in place.
Dynamic markets, led in France
by Agrial
In 2014, in spite of weather which was not very favourable to the beverages sector, the volume of French cider
marketed remained stable and has continued to grow by
4% in value. Agrial, the leader in cider in France with its
Loïc Raison, Ecusson and Kerisac brands, made a sizeable
contribution to invigorating the market through its innovations. On the international level, the world market for
cider remains very buoyant with an increase of over 6%
per year, led by demand from new countries such as the
United States and Australia.
In fresh fruit juices, the French market has continued to
increase with a growth of 3% this year. Danao and the
Group’s other brands also played a part in this dynamic
market thanks to the innovations and marketing campaigns launched by the Beverage Division.
Season limited in cider apples
Following the normal year of 2013, the 2014 apple season
was disrupted by an unfavourable spring and a damp and
cool summer, producing a large disparity in production.
With only 135,000 tonnes of apples collected, volume fell
by 25% compared with the previous year although the
share of produce from the Cooperative’s members continued to increase to reach 83% and the mediocre quality of
the fruit slowed down pressing.
The Apple Farmer Organisation (FO) continued to assist
its members within the framework of its operational programme: plans for assistance with production, financing
of equipment, help with irrigation or the setting up of alternative systems of production. For example, on this last
point, 40 hives of bumblebees were installed as an experiment with 10 producers in order to improve pollination
naturally and increase yields from their orchards. In addition, the FO launched RIMpro Web in 2014. This tool,
40 AGRIAL ANNUAL REPORT 2014
using meteorological data, provides follow-up models of
diseases. After a promising test year in 2014, the aim is to
cover most of the production basins using 40 automatic
meteorological stations in 2015.
Improvement in manufacturing procedures
After Livarot, Domagné and Guenrouët in 2013, it was
the turn of the sites of Chaource, in the Aube region, and
Anneville-sur- Scie, in the Seine-Maritime department, to
receive manufacturing investment in 2014.
At the Chaource site, a new pressing and processing line
for apple juice was instigated. It can process 7,000 extra
tonnes of apples. The sterile fermenting room purchased
in 2013, was set up on site and adds a storage capacity of
45,000 hectolitres.
A new press which can process 8 tonnes/hour was installed at Anneville. Combined with the reorganisation of
the orchards managed directly by the cidery, all the yields
from harvesting and extraction of pure juices have been
improved at the site.
In addition, the operational implementation of Lean Manufacturing, in use since 2013 at all the Division’s sites
has started to produce tangible results: improvement in
productivity, better team skills and a reduction in waste.
Growth by diversification,
innovation and marketing
The sales of branded cider by the Beverage Division
showed another increase in 2014. The individual sized
Loïc Raison ciders and the successful launch of Cider &
Raspberry stimulated sales for the Breton brand. Cider
& Raspberry was among the leaders in stores in its individual size only 5 months after its launch. For Ecusson,
Pink Cider is now a must-have reference and Cider & Pear
recorded increased volume sales. In October, Ecusson’s
Cider & Pear was recognised by its winning a 2015 Normandy Food Award.
Juice in bulk and concentrated form showed a large rise in
volume, especially thanks to the good 2013 harvest.
As regards fresh juice, Danao, the Division’s flagship brand,
profited from increased sales of the Mon Fruit Préféré (My
Favourite Fruit) range launched in 2013 whose Delicious
Strawberry and Tasty Banana flavours were very popular
with consumers.
2014 was also the first year of marketing of the Sunny Delight brand in France. The Orangina-Schweppes group has
entrusted Agrial with management of its brand. Agrial has
in this way increased its presence in the fresh juice section
with Sunny Delight and Danao. Reintroduced in March
2014, Sunny Delight has, for the first time in many years,
started along the path to growth.
These encouraging results confirm the Division’s strategy of
reinvigorating the markets in cider and fresh fruit juice in
France through innovation and marketing.
Record of turnover
(in millions of euros)
198
162
176
The international, a strategic orientation
International business increased in volume by 7% in
2014 and now represents 30% of the Division’s turnover. However, the stop on the export of Polish apples to
Russia following the embargo has disturbed the European market and caused a fall in the price of bulk and
concentrated juice.
But it is the strong increase in sales by the American subsidiary Manzana which has led the Division’s international business. In 2015, Manzana in the United States,
intends to develop compotes in squeezable containers.
And the Beverage Division intends to expand its cider
business to foreign markets.
2
201
3
201
4
201
The structures of the main functions within the company were reinforced in 2014. The Beverage Division thus
has solid bases for its future developments in France,
Europe and throughout the world.
AGRIAL ANNUAL REPORT 2014
41
Milk
DIVISION
A territory and new trades
I
n 2014, Agrial’s Milk Division continued with the developments involved in the framework of its grand milk
project initiated in 2012. The major events of the year
were the extension of the area of collection and involvement in a new industrial activity following the merger with
the Coralis cooperative, effective since the 1st November
and backdated to the 1st of January. As a result of this extra
business and the increase in production over the whole
territory, the Milk Division’s collection increased by 20%
to reach 1.73 billion litres collected from 3,900 producers.
The Division’s turnover in 2014 was 1.356 billion euros,
up by 21% compared with 2013.
Strong milk production and
falling prices at the end of the year
The increase in world milk production which started at the
end of 2013 continued in all major exporting countries and
world demand for powders continued to grow, buoyed up
by record purchases by China in the 1st half year of 2014.
However, the abundance of production brought with it a
reduction in world prices which fell sharply from July, a
fall all the more marked in Europe because of the Russian
embargo.
In France, the collection increased by 6% over the three first
quarters of 2014 and then slowed down markedly at the
end of the year with an overall annual increase of +4%. The
average price of milk paid to producers was 7.8% higher
in 2013 compared with the first eleven months of the year
(source France AgriMer), but slipped back in November to
below its level of the previous year.
As a result of the merger with the Coralis cooperative,
625 extra milk delivery members joined Agrial in 2014.
The total collection from the 2,932 members’ farms reached
1.335 billion litres, i.e. 336 million litres more than in 2013.
23 certified producers supplied 6 million litres of organic
milk. Agrial also collected 3.2 million litres of goats’ milk
from 14 members.
The average delivery per point of collection was 455,500
litres, which is a 9% increase compared with the previous
year. With an average of 40.9 g/l of fat and 33.4 g/l of protein
content, the composition of the milk was slightly poorer in
quality. A luxuriant forage feed harvest with fewer concentrates used explains this change. The cellular and butyric
qualities are also down but the bacteriological results remained at very satisfactory levels 98.9% classified with «lower
than 50,000 germs».
42 AGRIAL ANNUAL REPORT 2014
Technico-economic aid
and sustainable development
The Milk Division in 2014 increased its technico-economic aid to members and recognition of sustainable
development was taken into account. The objective is to
improve the efficiency of technical, economic and environmental practices within its units while not reducing its
producers’ income. In this framework, the Lactorial tool
for technico-economic analysis of the milk unit has been
rolled out and training courses on revenue management
for farmers have been run. The milk technicians’ mission
has been strengthened in all these aspects in order to help
members meet the requirements of Agrial’s customers.
Agrial is placing emphasis on its sustainable development
approach and its actions in the area of corporate, environmental and social responsibility:
• Renewal of the commitment for a further three years
to the “CO2 Objective”, the CO2 charter of Ademe which
aims to reduce fuel consumption and carbon emissions by
its fleet of vehicles;
• A renewal of the sustainable approach to reduce the carbon footprint of milk. This is based, among other things,
on the application of the «Responsible Milk» approaches
of CLE Bongrain» and Unilever’s «Sustainable Agriculture
Code». So, since 2011, 250 carbon footprint analyses have
been carried out with members.
Food safety, an ongoing concern
Agrial continued with actions to improve food safety in
2014 from farm to fork:
• 100% observance by producers of the charter of good
animal husbandry practices. This is obligatory to meet
customers’ specifications. 600 inspections were carried
out by milk technicians in 2014.
• Improvements in the collection fleet with the introduction of new tankers with a capacity of 29,500 litres which
will form 50% of the fleet from 2015. The “Farm Cooling”
service team maintained the 3,175 milk tanks and started installation of over 500 more tanks. In addition to
breakdown cover, Agrial provides preventive maintenance
of installations which enables it to carry out continuous
improvement in food safety from farm to fork.
• Following the merger with Coralis, the Division decided
not to renew its ISO 22 000 certification in 2014 in order
to prepare for a new certification of its collection process
in 2015. The objective is to spread «good practice» to the
whole of Agrial’s upstream milk operations.
Manufacturing and marketing developments
• Merger with Coralis
2014 was notable for the merger with the Coralis cooperative. It has enabled Agrial to strengthen its presence in
Ille-et-Vilaine, a region with a strong milk potential and
to consolidate its milk processing business via the Coralis
dairy. This dairy specialises in the production of UHT milk
(140 million litres capacity), butter (5,000 tonnes capacity), fresh cream (3 million litres capacity), all marketed
under the regional brand Agrilait. It employs 110 people
and has a turnover of 96 million euros.
• Development of Delicelait
The implementation of the drying tower on the Moyon
site in Manche at the start of 2014 enabled Délicelait to
ensure it can supply its outlets with milk ingredients to
large groups in the agrifood business in France and Europe. Agrial’s producers have supplied the factory with 150
million litres and continue to be fully committed to sustainable development approaches. Délicelait’s turnover was
120 million euros, an increase of more than 8% compared
with 2013.
• Improvement in Senagral’s efficiency
For the 3rd consecutive year, Senagral has faced a reduction in the ultra-fresh dairy produce market of about 3%.
The company collected, from 933 producers, 393 million
litres of milk, i.e. an increase of 3.5%. This has forced it to
manage a surplus situation. But operational restructuring
and improvements in productivity have enabled it to overcome this difficult situation and increase its profitability.
Senagral’s turnover was 562 million euros in 2014, a level
in line with its objectives. And in December, the Senoble
and Agrial groups reached an agreement to the purchase
on the 1st January 2015 of all Senagral’s shares by Agrial
which has thus become its sole shareholder.
• Growth of Iris Logistics
Iris Logistique is the company which processes Senagral’s
customers’ orders and deliveries. The growth of 15% in
its business in 2014 comes not only from its established
customers but also from the arrival of new industrial customers for whom Iris Logistique provides transport services.
The situation of the dairy business appears a difficult one
at the start of 2015 with milk production still large everywhere in the world and a slow-down in the economy
of developing countries. And the cessation of quotas in
Europe on the 1st April will force companies to check that
the volumes produced are in line with their markets and
their processing capacities.
Record of the average annual litrage
of members’ production units
455,500
388,400
2
201
417,800
3
201
4
201
AGRIAL ANNUAL REPORT 2014
43
Vegetable
DIVISION
Stability underwritten by multi-speciality
A
grial’s Vegetable Division has continued to consolidate its increasingly diversified business in fresh
ready-to-use vegetables. So, in spite of a difficult
market in fresh raw produce, it achieved a turnover of
almost 880 million euros, slightly down compared with
2013.
Following the successful integration of Bakkavör’s French
and Spanish fresh ready-to-use vegetable business, the Division completed its new fresh raw produce organisation
by setting up 5 units: Primeurs de France, Terre de France,
CBC-Préléco, International, Transports Inter-Légumes.
A difficult season for Priméale
Following two overall reasonable seasons, 2014 was a difficult year, especially for leeks, potatoes and carrots. This was
due to unusual and unseasonable weather in Europe. Faced
with stable consumption in France and Western Europe, an
almost zero demand for export and the Russian embargo,
surplus produce caused prices to tumble. However, in this
situation, Agrial was able to hold on to its market shares.
Many developments were continued in 2014 to expand
ranges, meet consumers’ expectations and improve the visibility of the Priméale brand. In this framework, more distinctive and practical packaging was introduced such as the
2.5 kg box of carrots. To the salad range were added baby
leaves of kale and wasabi rocket. The range of terroir potatoes was extended. In the catering sector, improvements in
packaging were offered such as the sealed stackable tray
and the resealable container for ease of use and better food
conservation.
The 2014 round of the Miam Truck also helped with spreading the brand’s visibility. With 10 activity days in 5 cities
in France, the campaign achieved over 10,000 tastings and
handed out 15,000 recipe leaflets.
In addition, the Division has developed in line with its objectives:
-Integration of potato and onion production following
confirmation of the merger with Copafelc;
- Introduction, under optimal conditions, of the first part
of the Athies potato storage site in the Somme department;
- Increase of 3,500 tonnes of capacity of the cold room for
carrots in Moult (Calvados);
- Deployment by Priméale of the IT system (ERP) already
used by Florette since 2008, providing for sharing a single
system for order management, invoicing, manufacture,
stock, transport, logistics…
- Reorganisation and optimisation of logistics.
44 AGRIAL ANNUAL REPORT 2014
Expansion of Florette
in the food service industry
Strengthened by the diversification of its activities, the
Vegetable Division was able, in 2014, to compensate for
the difficulties encountered by Priméale in fresh raw vegetables by Florette’s growth.
2014, Florette’s turnover increased by 4% in value in the
ready-to-use salads and vegetables market which is expanding in Europe led by fresh salads and, in particular,
snacks. Sales of classic bagged salad leaves have remained
stable whereas sales of baby leaves continue to increase.
In this context, the salad leaves campaign was successful
and members of the organisation of producers benefited
by 4,000 tonnes of extra rights to produce following the
integration of four sites taken over from Bakkavör in 2013.
Manufactured on the Torreilles site near Perpignan,
the bowls of salads have short transport times to retain
freshness. The components of the salads are produced by
farmers approved by Agrial who meet the brand’s specifications which are particularly strict as regards quality and
the environment. But the Florette brand has also been very
successful in supplying supermarkets and large stores, especially with bagged salads:
- In Spain, sales of ready-to-eat salads produced by Florette have been extremely successful. Several original recipes combining salad leaves, croutons, bacon, tomato...
are offered to satisfy consumer demand.
-In France, Baby Carrots with dips have contributed to an
increase in business. Sold in bags to preserve the freshness
of the vegetables, ready to crunch baby carrots are a healthy, tasty and practical alternative for snacks or aperitifs.
Another product launch, the new range of spreadable vegetables from Florette, appeared on the chilled counters
over the summer and come with several recipes created by
famous chefs: tzatziki, humus, tomato dip...
- Florette UK-Ireland has attracted consumers with its
Ready-to-wok range of a variety of ready-to-cook vegetables. In 2015, Florette will continue to expand its offer
in the area of healthy snacking with the launch announced
in France of packaged fresh fruit and vegetables, available
under the Florette Fraîcheur brand and baby leaves of kale
in the United Kingdom.
Innovations from Créaline
The subsidiary of the Vegetable Division which specialised
in the production of fresh soups and purées has vied with
them in 2014 to outdo in innovations and original recipes.
Vegetables cooked in the ratatouille fashion or pink and
cream gazpacho soups including fresh cheese and tomatoes are some examples of this.
Among Créaline’s remarkable innovations in 2014 is its
range of vegetable nibbles “Créaline à l’apéritif” which was
a winner at the Normandy 2015 Agro-Food Competition.
“Créaline à l’apéritif” takes the form of a platter ready to be
warmed in the oven and contains 24 nibbles combining
the delicate taste of vegetables and spices.
Créaline’s product dynamism contributed to the improvement in its performance in 2014.
Record of turnover
(in millions of euros)
925
878
728
Initiatives in the areas of environmental
and social responsibility
In order to certify responsible practices in production of
its vegetables, the Division continued in 2014 to deploy
LEAF and Global G.A.P. referentials to the producers of the
Vegetables FO. Over the 2014-2015 season, 83% of the
land area of the FO, all crops included, were Global G.A.P.
certified and 100% of land growing salads were LEAF certified. Now, Florette requires all its salad producers to be
LEAF certified.
The Division is also especially committed to assisting
groups who distribute food to the poorest people. In
2014, Priméale, Florette and Créaline donated respectively
20 tonnes, 22 tonnes and 31 tonnes of vegetables and fresh
produce to organisations such as Food Banks, Restos du
Coeur and Popular Assistance.
2
201
3
201
4
201
Agrial’s Vegetable Division is developing a strategy of multispecialism in the vegetables sector. Its diverse and innovative offers, its presence in all distribution opportunities, its
international sites and its strong brands constitute a guarantee of long-term safety and stability.
AGRIAL ANNUAL REPORT 2014
45
Poultry
& Meat
DIVISION
New positioning to take account
of market trends
I
n 2014 the Poultry & Meat Division continued with
its reorganisation project aimed at optimising costs and
researching outlets with better added value. The synergies between upstream production and downstream processing and trading were strengthened to respond better to
market requirements. In the overall context of a reduction
in consumption of meat in France, the Division produced
a turnover of 294 million euros in 2014, a reduction of 6%
compared with 2013.
In 2014, purchases of poultry for use at home fell (-1.6%)
in a context of a new increase of 2.8% in the purchase
price (source: Kantar panel). Certain categories fared better such as cuts because of their moderate prices, and also
whole Label Rouge chickens because of their perceived
healthiness and superior taste.
Reorganisation in the Poultry business
In 2014, Agrial’s Poultry business reduced in volume as a
consequence of a reduction in wholesale sales and exports
within the European Union and a deliberate abandonment
of non-profitable contracts.
The manufacturing improvements to the Chailland factory
in 2013 and better synergies with the upstream Poultry FO
in the field of supply came fully into their own in 2014 and
are contributing to the improved efficiency.
This reorganisation was a suitable moment to give a new
image to the Secoué company, renamed Galéo in August:
Galéo is reaffirming its roots in the Cooperative’s territory
and its commitment to its original values. The company
is consolidating its supplies from Agrial’s Poultry FO and
is concentrating on a superior product offered in a range
named “Gamme Fermière de Normandie” (Normandy Freerange Chicken Range). So, the brand «Le Campagnard Normand” has become «Poulet fermier de Normandie” (Freerange Chicken from Normandy), a GPI product certified
Label Rouge. In addition, Agrial’s Poultry & Meat Division
initiated some years ago the conversion of 100% of its chicken rearing units for its Poultry label chickens to alternative
systems. At the same time, a programme to reduce medication for label chickens was implemented, aimed at 100% of
all rearing units. Finally, the FO allocated assistance to farmers to purchase weighing equipment in order to optimise
control of the weight of poultry.
46 AGRIAL ANNUAL REPORT 2014
For 2015, the recovery of volumes in supermarkets and
large stores as well as in the wholesale markets remains a
priority as well as the management of stock and surpluses.
These activities will be completed by the deployment of the
Galistar brand from spring 2015. Cash & Carry will be
emphasised in 2015 with a specially adapted product offer
bearing the brand name Vicomte Professionnelle.
Trading helped by festive and luxury produce
Trading by the Halles de la Drôme company ceased in
2014 and the Division concentrated on its position as leader in the MIN (Rungis International Market) poultry hall.
Although the business remained, on the whole, stable in
2014, it was particularly boosted at the end of the year
because of festive products and the new brand, Gourmet Exception, launched by Avigros. This was available
in a wide range of luxury poultry products, foie gras and
other meat products. In addition, from August, GPI Label
Rouge-certified Free-range Chicken from Normandy were
added to the range of label chickens marketed by Avigros.
The meat business consolidated
In 2014, the Division consolidated its position in the Meat
sector by taking up all the shares in Maître Jacques in Rennes
and François Distribution in Rungis. The Meat business
increased slightly in 2014 (+4% in turnover), continuing
its good performance of 2013. All the large retailers continued to offer Maître Jacques products in their traditional
sections thanks to a renewal of the offer. Charcuterie Cosme
included its butchery business which it acquired in 2013
under the Boucherie Cosme brand while maintaining its
offer of quality regional produce in the self-service sections
of supermarkets and large stores and with local retailers.
On the structural level, the new management of the Meat
Industry centre has produced a reorganisation plan aimed
at economic efficiency and is developing skills in the field
of research & development, notably for Maître Jacques.
At the same time, plans for improving transport efficiency
were carried out in liaison with STC in Chailland. Finally,
work was started at the end of the year with Maître Jacques,
Charcuterie Cosme and Agrial’s Pork and Cattle FOs to set
up sector chains which are increasingly demanded by the
market.
After having carried out, reorganisations aimed at improving the efficiency of and synergies between its various businesses in 2014, Agrial’s Poultry & Meat Division is ready
for expansion.
Distribution of turnover
Total 2014:
294 million euros
Trading
T
36%
Poultry
r Industrry
35%
Meat Industry
r
29%
AGRIAL ANNUAL REPORT 2014
47
AGRIAL’S BRANDS
Vegetables
Beverages
48 AGRIAL ANNUAL REPORT 2014
Milk
Poultry & Meat
Animal feed
AGRIAL ANNUAL REPORT 2014
49
The annual report is
produced by the Institutional Relations Department of the Agrial Group
Photo credits:
© Photothèque Agrial, Agrilait, Charcuterie Cosme, Créaline, Eclor, Florette,
Evolution, Galéo, Maître Jacques Marketing, Priméale
© Acooa – lacoopérationagricole.coop - © Carré Noir
© CO Normandie 2014 - © Fotolia: Monkey Business
© iStock: Alesik - © Olivier Langlois
© Quai des Orfèvres - © studiodelaroque.com © Visyair
Graphics:
Agence Art terre
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