The food and agriculture crises that France has been experiencing since autumn 2000, triggered by the 'mad cow disease' (BSE) outbreak, have severely upset business in the meat industry, particularly beef and lamb/mutton. In autumn 2001, meat consumption is down and the continuing drop in beef sales is no longer being offset by increased sales in other meats. As a result, the entire meat industry is experiencing an economic slump, which is affecting not only farmers but also employment in the agri-food industry. A tripartite agreement on training was signed in July 2001 in an attempt to protect employment in the industry, while trade unions have sought both to defend jobs and to rethink France's current model of agriculture.
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The food and agriculture crises that France has been experiencing since autumn 2000, triggered by the 'mad cow disease' (BSE) outbreak, have severely upset business in the meat industry, particularly beef and lamb/mutton. In autumn 2001, meat consumption is down and the continuing drop in beef sales is no longer being offset by increased sales in other meats. As a result, the entire meat industry is experiencing an economic slump, which is affecting not only farmers but also employment in the agri-food industry. A tripartite agreement on training was signed in July 2001 in an attempt to protect employment in the industry, while trade unions have sought both to defend jobs and to rethink France's current model of agriculture.
Since October 2000, France has been facing a major food and agriculture crisis. The transmission to humans of 'mad cow disease' (or Bovine Spongiform Encephalopathy, BSE) has raised major concerns among consumers. By September 2001, beef sales remained below their pre-crisis level. Initially consumers had moved over to lamb and mutton, pork and poultry. However, the foot-and-mouth outbreak in the United Kingdom in February 2001 also severely disrupted meat consumption in France. Just as the beef sector was picking up, it was the turn of the lamb and mutton industry to face major problems.
As a result, according to the Consumption, Distribution and Advertising Research Corporation (Société d'études de la consommation, distribution et publicité, SECODIP) panel, household beef purchases between 11 June and 8 July 2001 remained 14% down on those over the same period in 2000 - see the graphic below. Lamb and mutton sales were 22% below the equivalent period in 2000. More surprising still was the fact that sales of fresh pork and ham had dropped slightly by 2% and 3% respectively, while poultry sales had plunged by 10%. Overall, sales of meat, including poultry and ham, had dropped by 9% from the same period in the previous year. According to SECODIP, this drop is due to higher retail prices.
Household purchases of meat, 2000-1
Boeuf = beef; viande ovine = lamb and mutton; porc frais = pork; volaille = poultry.
The drop in consumption has led to a reduction in production and prices in the beef industry. According to the Ofival agriculture office, French beef production fell by 4.3 % in 2000 from 1999 levels. Slaughter also dropped by 5.4 %. These figures picked up in early 2001 but failed to return to early 2000 levels. Consequently, for the week of 20 August to 27 August 2001, the turnover of the beef industry remained between 10% and 15% below that of the same period in 2000.
Impact on employment
Employment in the meat industry has been severely affected by the drop in consumption and production. Farmers have been the most affected. The 40% decline in beef consumption at the height of the crisis had a considerable negative impact on sales, and the economic situation among farmers is not showing any signs of improvement. National Young Farmers' Centre (Centre National des Jeunes Agriculteurs, CNJA) members have organised a sit-in at the Charal plant in Flers (Orne) since 5 September 2001 in protest at sluggish beef prices (for example, the current price of 'culled cows' stands at between FRF 11 and FRF 12 per kilo, compared with FRF 17 before the crisis) and the behaviour of some European countries such as Germany, which has 'opted to offload unsold German meat in France'.
In addition to farming, the whole industry has been affected. The slaughter and processing sector has been particularly hard hit. According to figures released by the National Wholesale Meat Industry and Meat Retail Federation (Fédération nationale de l'industrie et des commerces en gros de viandes, FNICGV) in early January 2001, some 10% of employees in major companies were on short-time working due to a drop-off in various sectors of business of between 20% and 80% (80% for exports, 50% for minced meat and 20% for butchered meat). As a case in point, SOCOPA, which employs a total of 4,000 workers in 16 abattoirs, has cut its workforce by 500. Fixed-term contract workers and those hired through temporary work agencies were the first to feel the effects of the downturn.
Agreement on training
In an attempt to defend industry jobs, a nationwide tripartite agreement was signed on 24 July 2001 by the Minister of Employment and Solidarity, the Minister of Agriculture, livestock and butchered meat industry employers associations and the agriculture and agri-food trade unions affiliated to the French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT), the French Christian Workers' Confederation (Confédération française des travailleurs chrétiens, CFTC), the General Confederation of Labour-Force ouvrière (Confédération générale du travail-Force ouvrière, CGT-FO), the French Confederation of Professional and Managerial Staff-General Confederation of Professional and Managerial Staff (Confédération française de l'encadrement - Confédération générale des cadres, CFE-CGC) and the National Federation of Independent Unions (Union nationale des syndicats autonomes, UNSA).
This agreement was the result of a meeting held on 24 November 2000, at which all trade unions - including the General Confederation of Labour (Confédération générale du travail, CGT), which did not sign the subsequent agreement - had requested that both Ministers maintain wages, implement a training plan and withdraw animal-based meal feed. The agreement was reached against the backdrop of BSE, 'which has affected operations at nearly all slaughterhouses, industrial and retail livestock and butchered meat companies of all sizes, business lines and location'.
The agreement sets out the terms and conditions for the implementation of a multi-year training plan and sets up a cooperative meat industry worker training programme funded by a one-off contribution from companies, the state and jointly-managed contribution collection agencies (Organismes paritaires de collecte agréés, OPCAs). In particular, companies will be required to promote 'bridges' between various occupations in the agri-food industry and provide workers with opportunities to obtain diplomas certifying their skills.
Trade union reaction
Agri-food trade unions were forced to respond to the social crisis in the beef industry. As pointed out by Maxime Gotesman of FGA, the relevant CFDT affiliate, all trade unions consider that 'the crisis must not, under any circumstances, be used as an excuse for backtracking on social issues in one of the most economically fragile areas of the agri-food industry.'
More generally speaking, the various unions have begun a review of food safety and the French model of agriculture. In the view of CFDT, 'the current agriculture model has become obsolete' and a genuinely sustainable agriculture system is required. CFDT supports strengthening the principles of precaution and safety.
CGT has condemned what it sees as an excessively output-driven system and has suggested that food safety should be based on scientific opinion, strengthened production and marketing controls and new rights for workers, such as 'sounding the alarm': 'This right, which would be conferred upon works councils and trade union representatives, would enable workers in the food-production chain to warn the appropriate inspection officials immediately whenever they identify any irregularities likely to pose a public health risk.'. The CGT-affiliated agri-food trade union did not sign the July 2001 agreement on vocational training, not because of hostility to improving qualifications but rather in condemnation of the current restructuring of the industry allegedly being carried out under the pretext of the 'mad cow crisis'.
Unlike CGT, FGTA, the CGT-FO agri-food federation, is satisfied with the agreement on vocational training. It believes that defending jobs requires improved qualifications, and is also advocating a more sustainable agricultural system. Nevertheless, it is concerned by the government's decision to cull all cattle which have consumed animal-based meal feed. Indeed, it is worried that there may be a shortage of French cattle in coming years.
In addition to making demands and defending workers, the 'representative' trade union organisations have all set up consumer agencies. Some of these agencies challenge the overall agriculture and agri-food industry model (in the case of the CGT-affiliated INDECOSA), while others point to the danger of importing products of uncertain origin (the CGT-FO-affiliated AFOC).
These consumer agencies have all specifically called for clear, understandable labelling for consumers, listing the origin, breed and category of beef (according to a 27 September 2000 press release by several consumer agencies including AFOC, INDECOSA and the UNSA-affiliated ADEIC). The CFDT-affiliated ASSECO is taking part in a panel of non-governmental organisations and consumer agencies on labelling, dubbed 'ethics of labelling'.
Commentary
The steps taken by the government, based on the principles of precaution and strengthening food safety, plus declining meat consumption have reduced production and therefore affected the number of jobs in the industry. This has forced national trade unions to attempt to reconcile food safety (advocated by their own consumer agencies) with job protection (supported by their affiliates in the agri-food industry). (Simon Macaire, IRES)
Eurofound recommends citing this publication in the following way.
Eurofound (2001), Industrial relations and the BSE crisis, article.
