Methods and some results in the dairy products chain

Transcription

1 The French «observatory» on formation of prices and margins of food products Methods and some results in the dairy products chain 1

2 Contents Objectives, context, organization Method (principles) Datas and methods in dairy food chain Results in dairy food chain Decomposition of retail prices into raw material and gross margins Costs in the stages of food chains Prices transmission 2

3 Objectives, context, organization 3

4 Objectives, context, organization : Objectives To measure an to explain the differences of values at every stage of the agri-food chains To produce informations shared by all stakholders about often sensitive subject, in order to improve better relations and more transparency in food chains 4

5 Objectives, context, organization : Context Agricultural crisis, volatility of prices : costs transmission, divergent variations of the upstream and downstream prices Retail trade concentration Legislation 2008: law ( of modernization of economy, LME) for a more market-oriented economy 2010: law ( of modernization of agriculture and fishery, LMAP) for adaptation of agriculture facing uncertainty (contractualization) 5

6 Objectives, context, organization : Organization Statistical and economic working project associating several organizations : FranceAgriMer (National agency for support to agri-food sector ) Public services of statistics Agro-economic research Professional technical institutes Not a new service, nor an authority of control of companies Orientation and validation of the studies: interprofessional steering committee, independent president (academic), technical management : FranceAgriMer 6

7 Method (principles) 7

8 General method, sector by sector 1 st stage Retail trade price of a food product Prices data (cotations, public datas, ad hoc surveys) and technical coefficients Agricultural Matière première product agricole Marge Food process brute industrie Gross margin Marge brute Distribution distribution Gross margin 8 Source : OFPM

9 General method, sector by sector Gross margin? From accounting data: gross margin value added others IC From unit prices and techn. ratios: gross margin per unit sold sales or production costs of goods sold or raw material selling unit price Unit cost = purchase unit price Q s/b IC : intermediate consumptions. Q s/b = quantity sold / quantity bought 9

10 General method, sector by sector 2 nd stage FADN Technical institutes AGRICULTURE FOOD PROCESS INDUSTRY RETAIL TRADE Ad hoc survey in major supermarket networks Agriculture production costs Processing costs in specialized firms Costs by store shelve in supermarkets Data base of sectorial accounts INSEE ; firms panels 10 Source : OFPM

11 Sectors products at retail level General method, sector by sector Dairy skimmed milk, yoghurt nature, emmental cheese, camembert cheese, standard goat cheese, sheep cheese feta type & roquefort, butter (national brands, distributors brands), in supermarkets. (Project : basket of products, prices weighted by volume of consumption) Others : Bovine meat carcass of medium cow reconstituted with pieces of fresh meat at retail level (supermarkets) Pork meat products of pork loin (roast and chop), cooked ham (in supermarkets) Poultry whole chikens (labels, standards), cuts of chicken (in supermarkets) Bakery french «baguette», average of all channels of distribution (supermarkets, traditional bakery ) Pastas standard pastas in pack of 500 gr, average of all channels (but mainly supermarkets) Fruits & vegetables about 20 products, a seasonal basket of fruits, a seasonal basket of vegetables (in supermarkets) Fishery : an example whiting in supermarkets and traditionnal fish shop 11

12 Further analysis : macroeconomic method 1 st approach : Food consumption = Domestic agri production + «rest» Imported Importations food Agri. production Production Valeurs Values créées en downstream aval de Taxes finales agricole (*) l'agriculture (*) Taxes 2010 data Calculation from IO symetric matrix (Eurostat), «Leontief calculations» 13,0 19,3 57,6 10,1 Source : OFPM, INSEE, Eurostat 12

13 Macroeconomic method 2 nd approach : Food consumption = Values added + food & intermediate imports + taxes on products Value added Importations finales Importations fintermédiaires Taxes Transport Agriculture Industries agroalimentaires Autres industries Services Commerces Values added = 63.2 IO symmetric IO symetric matrix matrixes (Eurostat) «Leontief (Eurostat), calculations» «Leontieff calculs» 2010 data 13,0 13,7 10,1 17,6 Source : OFPM, INSEE, Eurostat 20,9 13 2,6 8,1 10,4 3,6 Imported food Imported inputs Taxes Agriculture Food processing industry Others industries Services Trade

14 Datas and methods in dairy food chain 14

15 Datas and methods in dairy food chain : products Half-skimmed ultra heat traited milk Emmental cheese Camembert cheese Natural yoghurt Butter (pack of 205 g) Standard goat cheese Sheep cheese feta type Sheep cheese Roquefort All brands All brands National brands Retailer brands National brands Retailer brands National brands Retailer brands All brands All brands All brands 15

16 Datas and methods in dairy food chain : prices data sources AGRI. PRICES INDUSTRY PRICES RETAIL PRICES Dairy products Milk survey, SSP (p) Ad hoc survey for Obs. (by INSEE) Kantar Worldpanel (p) : public data Average values, France Retail prices in hyper and supermarkets, except hard discount Prices weighted by bought quantities Monthly frequency Availability : t + 2 or t + 3 months Ad hoc survey commercial data All prices «exit factory» ad hoc surveys, no pre-existing statistics Problem : retail prices include imported products (no data about origin of product in panel) Difficulty : to collect prices of same product (or same basket of products) exit factory and in supermarkets 16

17 Datas and methods in dairy food chain : the cost in milk for consumer dairy product processing Cost in milk for 1 kg of consumer dairy product (CDP) processing = Necessary volume of milk x milk production price (depends on technical yelds, losses, etc.) + Net valuation of industrial dairy products (IDP) linked to CDP and due to surplus milk collection / milk processing (*) (*) Products jointly produced with the consumer dairy product processing: i.e. cream with skimmed milk Industrial products (powders, industrial butter ) processed with surplus of milk : collected milk - consummer dairy product processing 17

18 Datas and methods in dairy food chain : the cost in milk for consumer dairy product processing Cost in milk for 1 kg of consumer dairy product processing = technically necessary volume of milk x milk production price + [ volumes of IDP ] x [ prices of IDP ] - [ specific costs of IDP processing ] 18

19 Datas and methods in dairy food chain : the cost in milk for consumer dairy product processing Data Calculation Sale of CDP Total cost in milk (for CDP and IDP) IDP specific processing costs Sale of IDP IDP net margin cost in milk for CDP CDP processing gross margin (Jointed+seasonal+annual quantities) x prices IDP Average costs of processing and packaging of IDP (jointed and from seasonal and annual surplus), from experts (Quantity of necessary milk for CDP + seasonnal and annual surplus to be processed in IDP ) x milk production price 19

20 Datas and methods in dairy food chain : milk deliveries seasonality modelling example : UHT milk Principle Milk consumption (or milk processing) and milk delivery : Trend component Seasonal component Difference between seasonal components of consumption and delivery = seasonal surplus 20

21 Datas and methods in dairy food chain : milk deliveries seasonality modelling example : UHT milk Principles (SAS proc X 11) C t, volume of milk collection at the date ( month, year ) «t» P t, volume of milk processed at the date ( month, year ) «t» Xt : Ct or Pt X t = T (X) t. S(X) t. D(X) t. I(X) t With : T (X) t : value of the long-run trend at the date ( month, year ) «t» S (X) t : seasonal factor (% of Tt) at the date ( month, year ) «t» : St St+12 ( % of T t ) D (X) t : the date effect at the date ( month, year ) «t» : holidays, etc., ( % of T t ) I (X ) t : irregular component at the date ( month, year ) «t» ( % of T t ) S (C) t / min (S (C) t - S(P) t ) - S(P) t / min (S (C) t - S(P) t ) : seasonal surplus, in % 21

22 Datas and methods in dairy food chain : milk deliveries seasonality modelling example : UHT milk Base 1000 L. au point bas 1000 litres at lower point of surplus Conditionnement UHT milk de : seasonality lait UHT : modelling estimation for des excédents litres of processed saisonniers milk (CVJA) Saisonalité Processing des seasonality fabrications Excédent Seasonal saisonnier surplus 22

23 Datas and methods in dairy food chain : milk volumes structurally devoted to industrial commodities Processed milk for consumer products Seasonal surplus Annual «surplus» Milk Litres equivalents Product 2 Seasonality statistical analysis Milk deliveries Product 1 23

24 Results in dairy food chain 24

25 Prices index Except in some cases, impossible to deduct the variation of price spread («margin») from indexes /2011 : 2013/2012 : Likely increase of process industry gross margin and retail gross margin From indexes only, impossible to deduct the variation of price spread (depends on the initial prices ratio) 2014/2013 : Increase of retail gross margin Cow milk production price index Dairy products consumer prices index Dairy products factory prices index 25

26 Prices index Notations : P A0 and P At : prices at satge A of the food chain, for year 0 and t, P B0 and P Bt : prices at the stage B of the food chain, for year 0 and t, m 0 = P B0 / P A0, prices ratio for year 0, D 0 = P B0 P A0 and D T = P Bt P At, the prices spreads for year 0 and t, D t = D t D 0, the variation of the prices spread, IP A0, IP At, IP B0 and IP Bt the indexes of the prices, for yera 0 and t, IP At and IP Bt the indexes variations for year t D t = P A0 m 0 IP IP Bt B0 IP IP At A0 m 0 is normally greater than 1, so : IP Bt IP D t > 0 (increasing prices spread) if : > At IPB0 IPA0 IP Bt IP D t < 0 (decreasing prices spread) if : < 0 et At IP > IPB0 IPA0 IPB0 Bt In the other cases, the sign of D t cannot be deducted only from : it is necessary to know the value of m 0 26

27 Prices index : limit It is necessary to have prices data in value (level in, VS index) for the monitoring of margins variations It could be a problem in some case : concentrated processing sector statistical confidentiality rules, respect of business confidentiality 27

28 Results in dairy food chain 1 Decomposition of retail price Clic here : All the results, tables, charts, informations, in the website Or : 28

29 Basket of dairy products from cow milk (test temporary) % bought annuel quantities (average ) * Half-skimmed ultra heat traited milk Emmental cheese 74.5% 6.1% Camembert cheese 2.6% Natural yoghurt 13.8% Butter (pack of 205 g) 3.1% * Kantar Worldpanel 29

30 Results in dairy food chain / decomposition retail price : basket of dairy products Annual decomposition of the retail price in hyper-supermarkets /kg dairy products basket 1,7 1,6 1,5 1,4 1,3 1,2 1,1 0,08 0,39 0,08 0,43 0,08 0,41 0,08 0,08 0,08 0,40 0,41 0,38 0,08 0,35 VAT Hyper & supermarkets gross margin 1,0 0,9 0,8 0,46 0,48 0,46 0,49 0,49 0,50 0,48 Dairy processing industry 0,7 0,6 0,5 0,4 0,3 0,2 0,67 0,55 0,56 0,58 0,58 0,59 0,67 Cost in milk (or in industrial butter*) 0,1 0, cost in milk (or in industriel butter*) gross margin in dairy processing industry gross margin in supermarkets chains VAT consummer price * Consummer butter is considered as a product of 2 nd processing, from industrial butter, which is a jointed product of others consummer products 30 Source : OFPM, FranceAgriMer, Kantar Worlpanel

31 Results in dairy food chain / decomposition retail price : basket Gross margin in dairy processing industry and hyper-supermarkets /kg dairy products basket 0,6 0,5 0,4 0,3 0,2 0,1 0, gross margin in dairy processing industry gross margin in supermarkets chains 31 Source : OFPM, FranceAgriMer, Kantar Worlpanel

32 Results in dairy food chain / decomposition retail price : skimmed milk Annual decomposition of the retail price in hyper & supermarket of the skimmed milk: all brands (national brand, retailers brand) / litre of half kimmed UHT milk 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,59 0,08 0,60 0,10 0,62 0,12 0,23 0,22 0,22 0,63 0,15 0,63 0,14 0,64 0,15 0,65 0,14 0,21 0,22 0,22 0,28 0,73 0,04 0,14 0,24 0,72 0,04 0,18 0,25 0,69 0,04 0,16 0,26 0,73 0,04 0,04 0,04 0,16 0,17 0,29 0,73 0,73 0,15 0,26 0,31 0,04 0,12 0,28 0,75 VAT Supermarkets gross margin Dairy processing industry Cost in milk 0,1 0,25 0,26 0,25 0,24 0,24 0,23 0,20 0,31 0,25 0,23 0,23 0,26 0,24 0,30 0, Cost in milk Gross margin in supermarkets chains Consumer price Gross margin of dairy processing industry VAT to yoghurt 32 Source : OFPM, FranceAgriMer, Kantar Worlpanel

33 Results in dairy food chain / decomposition retail price : skimmed milk Monthly decomposition of the retail price in supermarket of the skimmed milk (national br., retailers br.) / litre of half skimmed UHT milk 0,9 0,8 0,7 0,6 0,5 0,4 0,3 VAT Supermarkets gross margin Dairy processing industry gross margin 0,2 Cost in milk 0,1 to camembert 0, Cost in milk Gross margin of dairy processing industry Gross margin of supermarkets chains VAT to yoghurt 33 Source : OFPM, FranceAgriMer, Kantar Worlpanel

34 Results in dairy food chain / decomposition retail price : skimmed milk Gross margin in dairy processing industry and supermarket chain for the skimmed milk (national br., retailers br.) / litre of hal skimmed UHT milk 0,4 0,4 0,3 0,3 Supermarkets gross margin 0,2 0,2 Dairy processing industry gross margin 0,1 0,1 0, Gross margin of dairy processing industry Gross margin in supermarkets chains 34 Source : OFPM, FranceAgriMer, Kantar Worlpanel

35 Results in dairy food chain / decomposition retail price : emmental Annual decomposition of the retail price in supermarket of the emmental (national br., retailers br.) / kg emmental 8,0 7,0 6,64 6,84 6,92 6,85 6,87 6,84 6,89 7,62 0,40 7,21 0,38 6,97 0,36 7,16 0,37 7,26 7,27 7,32 0,38 0,38 0,38 VAT 6,0 1,81 1,88 1,97 2,11 2,10 2,11 2,22 2,29 2,49 2,46 2,37 2,52 2,49 2,30 Supermarkets gross margin 5,0 4,0 3,0 1,07 1,14 1,15 1,13 1,28 1,47 1,63 0,99 1,13 1,02 1,21 1,17 1,12 0,86 Dairy processing industry gross margin 2,0 1,0 3,42 3,46 3,44 3,26 3,13 2,91 2,68 3,95 3,21 3,13 3,20 3,19 3,29 3,78 Cost in milk 0, Cost in milk Gross margin in supermarkets chains Gross margin in dairy processing industry VAT to UHT milk Consumer price 35 Source : OFPM, FranceAgriMer, Kantar Worlpanel

36 Results in dairy food chain / decomposition retail price : emmental Monthly decomposition of the retail price in supermarket of the emmental (national br., retailers br.) / kg emmental 9,0 8,0 7,0 VAT 6,0 5,0 Supermarkets gross margin 4,0 3,0 Dairy processing industry gross margin 2,0 1,0 Cost in milk 0, To UHT milk Cost in milk Gross margin of dairy processing industry Gross margin in supermarkets chains VAT To yoghurt 36 Source : OFPM, FranceAgriMer, Kantar Worlpanel

37 3,0 Results in dairy food chain / decomposition retail price : emmental Gross margin in dairy processing industry and supermarket chains for the emmental (national br., retailers br.) 2,5 / kg emmental 2,0 1,5 1,0 Supermarkets gross margin Dairy processing industry gross margin 0,5 0, Gross margin in dairy processing industry Gross margin in supermarkets chains 37 Source : OFPM, FranceAgriMer, Kantar Worlpanel

38 Results in dairy food chain / decomposition retail price : camembert Annual decomposition of the retail price in supermarket of the camembert (national br., retailers br.) /kg camembert ,11 0,32 1,50 6,32 0,33 1,68 6,50 6,51 6,45 6,39 6,41 0,34 0,34 0,34 0,33 0,33 1,81 1,86 1,79 1,72 1,66 6,93 0,36 1,83 6,76 6,67 0,35 0,35 1,93 1,88 6,80 6,75 6,57 0,35 0,35 0,34 1,89 1,84 1,62 0,35 6,70 1,54 VAT Supermarkets gross margin 4 3 1,81 1,75 1,81 1,92 1,99 2,16 2,53 1,77 2,03 2,15 2,27 2,16 2,28 2,06 Dairy processing industry gross margin 2 1 2,48 2,57 2,53 2,39 2,33 2,17 1,88 2,97 2,44 2,29 2,29 2,40 2,32 2,76 Cost in milk Cost in milk Gross margin in supermarkets chains Consumer price Gross margin in dairy processing industry VAT To UHT milk 38 Source : OFPM, FranceAgriMer, Kantar Worlpanel

39 Results in dairy food chain / decomposition retail price : camembert Annual decomposition of the retail price in supermarket of the camembert (national br., retailers br.) /kg camembert VAT 5 Supermarkets gross margin 4 3 Dairy processing industry gross margin 2 1 Cost in milk Cost in milk Gross margin in dairy processing industry Gross margin in supermarkets chains VAT To UHT milk 39 Source : OFPM, FranceAgriMer, Kantar Worlpanel

40 Results in dairy food chain / decomposition retail price : camembert Gross margin in dairy processing industry and supermarkets chains (national br., retailers br.) /kg camembert 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0, gross margin in dairy processing industry gross margin in supermarkets chains 40 Source : OFPM, FranceAgriMer, Kantar Worlpanel

41 Results in dairy food chain / decomposition retail price : plain yoghurt Annual decomposition of the retail price in supermarket of the natural yoghurt (national br., retailers br.) /kg yoghurt 2,0 1,8 1,6 1,4 1,2 1,70 0,09 0,51 1,79 0,09 0,57 1,82 0,09 0,59 1,86 0,10 0,65 1,81 0,09 0,62 1,77 0,09 0,57 1,67 0,09 0,46 1,77 0,09 0,45 1,69 0,09 0,44 1,63 1,62 1,63 1,58 0,08 0,08 0,08 0,08 0,41 0,36 0,34 0,28 0,09 0,34 1,64 VAT Supermarkets gross margin 1,0 0,8 0,6 0,83 0,85 0,87 0,86 0,85 0,86 0,90 0,89 0,90 0,89 0,93 0,93 0,96 0,89 Dairy processing industry gross margin 0,4 0,2 0,0 0,27 0,27 0,26 0,25 0,25 0,25 0,22 0,34 0,26 0,24 0,24 0,27 0,26 0, Cost in milk cost in milk gross margin in supermarkets chains gross margin in dairy processing industry VAT To UHT milk consumer price 41 Source : OFPM, FranceAgriMer, Kantar Worlpanel

42 Results in dairy food chain / decomposition retail price : plain yoghurt Monthly decomposition of the retail price in supermarket of the natural yoghurt (national br., retailers br.) /kg yoghurt 2,0 1,8 1,6 1,4 1,2 VAT Supermarkets gross margin 1,0 0,8 0,6 Dairy processing industry gross margin 0,4 0,2 0, cost in milk gross margin in dairy processing industry gross margin in supermarkets chains VAT Cost in milk To UHT milk 42 Source : OFPM, FranceAgriMer, Kantar Worlpanel

43 Results in dairy food chain / decomposition retail price : plain yoghurt Gross margin in dairy processing industry and supermarkets chains (national br., retailers br.) /kg yoghurt 1,2 1,0 0,8 0,6 0,4 0,2 0, gross margin in dairy processing industry gross margin in supermarkets chains 43 Source : OFPM, FranceAgriMer, Kantar Worlpanel

44 Results in dairy food chain / decomposition retail price : pack of butter 250 g Annual decomposition of the retail price in supermarket of the pack of butter 250 g : all brands (national br., retailers br.) /kg butter pack 250 g ,03 5,13 5,18 5,13 5,05 4,97 0,26 0,27 0,27 0,27 0,26 0,26 0,74 0,86 0,91 0,88 0,85 0,83 0,93 1,06 1,00 1,01 1,19 1,39 5,23 0,27 0,97 0,73 5,89 0,31 1,19 1,80 5,48 5,49 0,29 0,29 1,25 1,17 0,66 1,49 5,88 5,89 5,86 5,89 0,31 0,31 0,31 0,31 1,25 1,24 1,16 1,00 0,43 0,47 1,18 1,26 VAT Supermarkets gross margin Dairy processing industry gross margin 2 1 3,10 2,95 3,00 2,97 2,74 2,49 3,25 2,60 2,46 3,37 3,90 3,09 3,92 3,41 Cost in industrial butter cost in industrial butter gross margin in dairy processing industry gross margin in supermarkets chains consumer price VAT 44 Source : OFPM, FranceAgriMer, Kantar Worlpanel

45 Results in dairy food chain / decomposition retail price : pack of butter 250 g Monthly decomposition of the retail price in supermarket of the pack of butter 250 g (national br., retailers br.) /kg yoghurt 2,0 1,8 1,6 VAT 1,4 1,2 Supermarkets gross margin 1,0 0,8 0,6 Dairy processing industry gross margin 0,4 0,2 0, cost in milk gross margin in dairy processing industry gross margin in supermarkets chains VAT Cost in industrial butter 45 Source : OFPM, FranceAgriMer, Kantar Worlpanel

46 Results in dairy food chain / decomposition retail price : pack of butter 250 g Gross margin in dairy processing industry and supermarkets chains : (national br., retailers br.) /kg butter pack 250 g 2,5 2,0 1,5 1,0 0,5 0, gross margin in dairy processing industry gross margin in supermarkets chains 46 Source : OFPM, FranceAgriMer, Kantar Worlpanel

47 Results in dairy food chain 2 Costs in farm Clic here : All the results, tables, charts, informations, in the website Or : 47

48 Results in dairy food chain / costs in farm for litres (*) Other structural costs Other intermediate consumption Inputs for crops and forage Amortisation Livestock feed from market Energy, costs in machinery and equipments (*) forecast Allowed income Milk sales + subsidies Milk sales 48 Source : OFPM, from FADN

49 Results in dairy food chain 3 Costs in dairy processing industry Clic here : All the results, tables, charts, informations, in the website Or : 49

50 Results in dairy food chain / costs in dairy process. industry : whole sector 100% 90% 1,83% 2,14% 1,31% 1,34% 9,81% 9,42% 9,16% 9,32% 80% 70% 19,75% 23,42% 22,81% 23,17% Profit befor corporate tax Taxes 60% 50% Compensation of employees 40% 30% 64,31% 61,33% 63,03% 62,32% Amortization, financial costs 20% Other purchases and external costs 10% 0% Commodities, goods, raw materials 50 Source : OFPM, from INSEE (Esane)

51 Results in dairy food chain / costs in dairy process. industry : typology Typology by structure of productions of dairy products : liquid milk and cream, not concentrated Consumer products Products for industry fermented milk (yoghurts) cheese (except soft or spreads) cheese spreads soft white cheese butter and other fat products of milk concentrated milk or cream milk or cream in powder buttermilk, casein, whey Companies owned by a group Independent companies 51

52 Results in dairy food chain 3 Costs in supermarkets chains Clic here : All the results, tables, charts, informations, in the website Or : 52

53 Results in dairy food chain / costs in supermarket chain : method scope of consolidation for the of observatory survey SUPPLIERS OF GOODS TO BE SOLD INTEGRATED BUYING GROUP TYPE Shops + buying group = one and same company BUYING GROUP TYPE COOPERATIVE Financing with a contribution of shops BUYING GROUP TYPE WHOLESALER Financing with a commercial margin with shops contribution margin SHOPS : HYPER AND SUPERMARKETS CONSUMERS goods to be sold cash supplies, services neutralized flow SUPPORT SERVICES contribution scope of financial group SUPPLIES AND SERVICES PROVIDERS REAL ESTATE MANAGEMENT 53 Source : OFPM

54 Results in dairy food chain / costs in supermarket chain : results for dairy products dpt. Sales of the department : meat department, delicatessen, poultry, fruits and veg., dairy, bakery (measured at the entry of the perimeter : buying group) - Costs of goods sold (taken into account : back and rebates, internal logistical costs) = Gross margin - Specialized employees costs = Semi-net margin - Others directs charges (specialized supplies ) - Common costs to be distributed (with keys) amongst the departments (supplies, employees, real estate, financial costs, amortization ) = Net margin (before or after distribution of tax on profit) 54

55 Results in dairy food chain / costs in supermarket chain : results for dairy dpt. 100 NET MARGIN BEFORE TAX ON 2,3 PROFIT ,6 20,3 12,1 OTHERS COSTS 80 4,3 FINANCIAL COSTS 70 COMPENSATION OF NON- SPECIALIZED EMPLOYEES ,0 REAL ESTATE COSTS OTHER DIRECT COSTS OF DEPARTMENT SEMI-NET MARGIN ,4 COMPENSATION OF EMPOYEES OF DAIRY DEPARTMENT GROSS MARGIN 20 COSTS OF GOODS SOLD 10 SALES 0 Source : OFPM 55

56 Results in dairy food chain / costs in supermarket chain : all fresh food dpts ,7 20,5 1,8 13,1 NET Marge MARGIN nette avant BEFORE IS TAX ON PROFIT Autres charges OTHERS COSTS ,2 Frais financiers FINANCIAL COSTS Personnel hors-rayon COMPENSATION OF NON- SPECIALIZED EMPLOYEES Immobilier REAL ESTATE COSTS ,0 70,3 Autres charges directes du OTHER rayon DIRECT COSTS OF DEPARTMENT Marge semi-nette SEMI-NET MARGIN Frais de personnel du COMPENSATION rayon OF EMPOYEES OF DAIRY DEPARTMENT Marge brute 20 GROSS MARGIN Coût d'achat 10 COSTS OF GOODS SOLD Chiffre d'affaires 0 SALES 56 Source : OFPM

57 Results in dairy food chain / costs in supermarket chain : Dairy dpt and others Dairy products Fruits and veg. Meat Delicatessen Fishery Bakery Poultry Sales Cost of sold goods Gross margin Compensation of specialized employees Others costs Net margin 57 Source : OFPM

58 Results in dairy food chain 3 Prices transmission indicators Clic here : All the results, tables, charts, informations, in the website Or : 58

59 Results in dairy food chain / prices transmission : principles At every stage of the chain (agriculture, processing, distribution) : calculation of a «simulated price» (of milk at the exit of farm, of processed product at the exit of factory, of consummer product in super-hyper markets). This simulated price is such as the gross margin (GM) of the considered stage (GM on intermediate consumption in farm, GM on costs in milk in processing industry, gross margin on costs of sold products in supermarkets) is maintained at its level of 2005, inflation taken into account. 59

60 Results in dairy food chain / prices transmission : farm costsmilk price at farm level /05 07/05 01/06 07/06 01/07 / 100 litres of milk 07/07 01/08 07/08 01/09 07/09 01/10 07/10 01/11 07/11 01/12 07/12 01/13 07/13 01/14 07/14 01/15 Costs in intermediate consumptions Observed farm price of milk Trend Simulated farm price of milk 60 Source : OFPM, FranceAgriMer, INSEE, IDELE

61 Results in dairy food chain / prices transmission : cost in milk dairy products prices at factory level 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 01/05 07/05 01/06 07/06 / kg milk 01/07 07/07 01/08 07/08 01/09 07/09 01/10 07/10 01/11 07/11 01/12 07/12 01/13 07/13 01/14 07/14 01/15 Cost in milk for processing Observed price of half-skimmed UHT milk exit factory Observed price of half-skimmed UHT milk exit factory 61 Source : OFPM, FranceAgriMer, Kantar Worlpanel

62 Results in dairy food chain / prices transmission : dairy products prices at factory leveldairy products at retail level / kg 0,80 0,75 0,70 0,65 0,60 0,55 0,50 0,45 0,40 01/05 07/05 01/06 07/06 01/07 07/07 01/08 07/08 01/09 07/09 01/10 07/10 01/11 07/11 01/12 07/12 01/13 07/13 01/14 07/14 01/15 Half-skimmed UHT milk exit dairy factory Observed price of half-skimmed UHT milk in hyper-supermarkets Simulated price of half- skimmed UHT milk in hyper-supermarkets 62 Source : OFPM, FranceAgriMer, INSEE

63 Main results of the Observatory Dairy products Increase of milk production price in 2014 totally or partially transmitted by food processing industry, according to products Retail prices in supermarkets : increasing Amelioration of the situation of dairy farms Contrasted evolutions of results in dairy industry, according to products Gross and net margins of the dairy sector in supermarkets decreasing in 2013 in 2014? 63

64 Thank you for attention 64