Following some negative press coverage during 2006, French oyster producers are no doubt relieved at what appears to have been a successful end of year campaign with prices remaining firm going 2007.

Marketing efforts boost Christmas sales

With annual volumes estimated at over 125 000 tonnes, France is not only the leading market for oysters in Europe but also enjoys the highest per capita consumption, at over 2kg, in the world. Supplies are essentially from domestic production with aquaculture activities spread along the Atlantic and, to a much lesser extent, the Mediterranean coasts. Output is mainly focused on the ‘cupped’ oyster (Crassostrea gigas) with production of the traditional flat oyster (Ostrea edulis) well behind, volumes having fallen over the past thirty years or so to the current level of between 1 and 2 000 tonnes. Imports also play a role but account for a relatively small share of total volumes and consist mainly of bulk supplies for relaying. Sales are almost exclusively in live form and are highly seasonal, December and early January accounting for over half of total yearly volumes.

Faced with difficult market conditions, the French oyster industry has responded in recent years with a series of marketing and quality initiatives aimed at differentiating its products, achieving stronger margins and expanding its customer base. The market is now segmented into a wide range of geographical, quality and size categories. Oysters from the Marennes Oléron region enjoy the strongest notoriety among consumers while Label Rouge oysters are perceived as an upper end quality product. In terms of sizes, the 66-85gr grade, the number 3, is the most popular at retail level.

Following a strong 2005/2006 season, trade indications suggest that the current 2006/2007 season is also satisfactory with sales during the recent Christmas/New Year period relatively good despite somewhat adverse media reports earlier in the season. Fears of a serious biotoxin problem in the Arcachon region in the south west of France during the August/September period turned out to be unfounded but the attendant media coverage was at national level. As a result, there was some concern about adverse effects on the end of year trade.

Following the crisis, the industry launched, with government support, a comprehensive promotional campaign centred on television and regional press advertising to coincide with the Christmas festivities. The success of this campaign, which complemented marketing initiatives undertaken by the regional organizations, is being gauged by the fact that price levels have remained buoyant into the second half of January, normally a weaker trading period. Price levels have also been boosted by weaker production, due to mortalities, in some regions, notably in the Mediterranean and south Brittany areas.

The relatively strong market situation also appears to be benefiting foreign suppliers. Delivered prices for bulk oysters for relaying in France this season are reported at around €2.25/kg for the standard quality and around €2.70/kg for the higher “speciale” grade. In general, these prices represent increases of some 5-10% above those of the previous season.

Stronger export sales

2006 as a whole also appears to have been positive for French oyster exporters with both higher volumes and higher average unit prices compared to 2005. Overall export volumes increased by 10% to 6 200 tonnes during the first eleven months of 2006 compared with the same period in the previous year. This increase suggests that France will have exceeded the 7 500 tonne mark for 2006 as a whole. The increase was largely thanks to a 13% increase in sales to France’s main oyster export market, Italy, and to a 31% jump in volumes to Germany.

The increase in exports last year was achieved despite an increase in average unit values: +5% for overall volumes to €3.49/kg while the increase for the Italian market was 6%, to €2.99/kg. These increases appear consistent with reports of a generally upward price trend in the industry over the past year.

Weaker Italian volume imports but values up during 2006

Despite increased sales from France during 2006, Italian oyster imports in general declined during the January-October period with volumes down 7% compared to the corresponding period in 2005. In value terms, the change was, however, positive with sales up 4% to €12.8 million over the ten month period. The drop in volumes was mainly as a result of a fall in imports from both the Netherlands and Greece, down respectively over 50% and 30% compared to the previous year. It is possible, however, that full year figures will show a more positive outcome in volume terms.

As in the case of French exports, unit values for Italian imports increased last year, the overall average moving up 12% to €2.77/kg compared with the first ten months of 2005.

Marketing impetus in French oyster industry likely to continue

The seemingly positive start in price terms to 2007 should, if confirmed, boost confidence in the French oyster industry following the unwelcome media coverage during the second half of 2006. Although supply shortfalls and shortages in certain size grades have undoubtedly helped prices, the positive outcome of the current season may also support the case for more active promotional activity at consumer level and add further impetus to the impressive efforts made by the French industry in recent years at product differentiation and focused quality initiatives. These efforts have helped to position the French oyster industry as a model for seafood sectors outside of France in terms of achieving value added gains without recourse to processing or sophisticated packaging techniques.


By Gerry O’Sullivan (GLOBEFISH)

© FAO GLOBEFISH 2007