YEAR 2008 - SDF

6
ANNUAL REPORT 2008
MARKET TRENDS IN FRANCE
The STEF-TFE Group mainly operates in the food
industry, dealing with two types of product:
processed products,
harvested products (seafood, fruit and
vegetables, flowers).
Its customers fall into four major categories:
PRODUCERS, RETAILERS, WHOLESALERS,
FOOD-SERVICE OUTLETS
A breakdown of retail sales volumes clearly demonstrates
the extent of the recent slowdown.
(source: Banque de France)
2006 2007 2008
� ��
General
business: +2.0% +2.9% -1.6%
- of which food products
excluding meat +0.4% +0.8% -2.8%
- of which meat and
meat-based products +1.0% -2.0% -5.1%
According to the latest available estimates, France is
being spared the recession, which will hit several
European countries in 2008. GDP growth is reckoned
at 0.7% over the full year, far short of the 2.2% recorded
in 2007.
Two major factors behind the weakness of the
economy:
■ Consumer spending: the traditional mainstay of French
economic growth. Demand has fallen under the
pressure of strong inflation recorded in the first months
of the year.
■ Corporate investment: the banking crisis has deprived
companies of access to credit, leading to a dramatic
fall in investment in 2008.
Consumer behaviour is explained by examining the
monthly inflation figures for France in 2008. The first
half saw a tangible increase in inflation (up 3.6% annually
in June), then the inflationary risk suddenly gave way to
virtual price deflation (down 0.2% in July, before reverting
to annual growth of 1% in December). The volume and
value figures for the economy should therefore be
examined in the light of these marked price effects. The
main factors influencing STEF-TFE's market, especially
in France, are food and agricultural production and
consumer demand for food products. The market's rising
food prices, however, tend to mask major differences
between branches.
In order to boost purchasing power by encouraging
competition, the French government has enacted two
laws (the Chatel Law of 3 January 2008 and the Law
on the Modernisation of the Economy of 4 August 2008)
which came into force in 2008 and 2009, with a
significant impact on the entire agrifood chain—retail,
transport and logistics.