AGRIFRANCE
RURAL REPORT IN 2016
Oak barrel staves – a market success story
PREFACE
01
Panorama
RURAL LAND IN 2015
P.2
02
Focus
Oak barrel staves
– a market success story
P.22
For more than 15 years now, Agrifrance and BNP Paribas
Wealth Management have been producing an annual report
providing an overview of the French rural land sector and
the year’s key market trends.
While the grain and timber sectors are still hampered
by a difficult economic environment, the wine trade is in
good shape following the excellent 2015 harvest. From
an investment standpoint, rural land offers an appealing
diversification opportunity that continues to attract buyers.
The average prices we have observed are currently lower
than those of our European neighbours, and the overall
profitability of capital invested in rural land remains
attractive.
Our Focus article bridges the worlds of forestry and wine
to explore a French success story whose quality and knowhow have made it a global leader. This is an in-depth look
at barrel making, a high value added sector enjoying rapid
international growth, which is dominated by France.
We would also like to take this opportunity to thank our
clients as well as the investment professionals who have
placed their trust in us, and we hope that you will find this
report interesting and informative.
Happy reading!
B. Léchenault, Head of Agrifrance.
BNP PARIBAS WEALTH MANAGEMENT I 1
2 I AGRIFRANCE - RURAL REPORT IN 2016
01
Panorama
RURAL LAND
IN 2015
Farmland
p.
4
Vineyards
p.
10
FORESTS
p.
16
BNP PARIBAS WEALTH MANAGEMENT I 3
01
RURAL LAND IN
2015
Farmland
4 I AGRIFRANCE - RURAL REPORT IN 2016
2015 harvest
A good year for winter crops,
but a struggle for revenue
WHEAT I a record year.
The global harvest (733 million tonnes) was excellent, and the various grain-producing
countries are facing strong competition in a weak demand environment.
In France, the planted area of almost 5.2 million hectares was the highest level since
1936. With a large harvest in the region of 40.5 million tonnes, prices struggled. Yields
were also high in 2015, at a record national average of 79.4 q/ha, compared with a
five-year average of 72.6 q/ha. Overall quality was good.
In February 2016, prices fell to €137/tonne, from €186/tonne a year earlier (-26.3%).
However, euro depreciation improved the competitiveness of French wheat over
Russian wheat.
Soft wheat prices (€/tonne)
Source: La France Agricole
200
180
160
140
120
100
May 14
Sept 14
Jan 15
May 15
Sept 15
Jan 16
BNP PARIBAS WEALTH MANAGEMENT I 5
01
RURAL LAND IN
2015
CORN I small harvests in Europe.
While the forecasts for US harvests were revised up, estimates in Europe
were slashed, and harvests were smaller than expected. In France,
production fell by 5 million tonnes to 13.1 million tonnes. This was
attributable to drought and a significant contraction in the planted area
(11%). The average yield slumped by 20 q/ha, to 85 q/ha.
Prices have been falling since July 2015, stabilising at €146/tonne in
February 2016, compared with €144/tonne in February 2015.
Corn prices (€/tonne)
Source: La France Agricole
200
180
160
140
120
100
May 14
Sept 14
Rapeseed I harvest slightly down; prices
relatively stable.
After reaching 1.6 million hectares in 2012, the planted area of rapeseed
was some way below the ten-year average in 2015, shrinking by 20,000
hectares to 1.48 million hectares. The average yield was 36.4 q/ha, in the
mid-high range for recent years. Global stocks remain high, while prices
are falling following a large harvest, in line with the soybean trend. Since
September 2014, prices have returned to higher levels. After rising to €400/
tonne at the start of the summer, prices fell back to €356/tonne in February
2016. These prices are almost identical to February 2015.
Rapeseed prices (€/tonne)
Source: La France Agricole
450
425
400
375
350
325
300
275
May 14
Sept 14
Jan 15
6 I AGRIFRANCE - RURAL REPORT IN 2016
May 15
Sept 15
Jan 16
Jan 15
May 15
Sept 15
Jan 16
Common
Agricultural
Policy
1 out of 2
FRENCH CITIZENS
AGREEs THAT
FINANCIAL SUPPORT
FOR FARMERS SHOULD INCREASE.
2015 weather conditions
An almost record year
Temperature °C
OF FRENCH
CITIZENS
BELIEVE THAT
THE EUROPEAN UNION
AGRICULTURE AND RURAL
AREAS ARE IMPORTANT
FOR THE FUTURE.
Min.
30
24.9
20
12.7
10 8
0
8
2.4
1.1
Jan
Feb
4.3
Mar
Precipitation mm
18.1
6.9
Apr
19.4
9.5
May
Precipitation
12.8
39.1
51.6
57.9
39.4
26.8
15.2
15.1
Jun
Jul
Aug
Normal
51.4
0
Jan
Feb
Mar
Apr
Sunlight hours
May
82
28.9
14
Jun
Jul
Sunlight
222.3
200
100 62.2
101.1
20.1
16
14.8
10.4
8.2
8.2
Sep
Oct
Nov
87.6
Sep
5.9
Dec
Annual precipitation
567.5 mm (normal: 695.6 mm)
41.3
Aug
12.4
Oct
51.9
21.8
Nov
Dec
87.4
92.3
Nov
Dec
Normal
310.6
300
Average temperatures
Max.: 17.4 °C (normal: 16.1 °C)
Min.: 8.3 °C (normal: 7.5 °C)
Avg.: 12.9 °C (normal: 11.8 °C)
Normal
27.5
80
40
92%
Max.
226.2
256.4
209.8
128
199.2
122.4
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Source: Météo France
Although heat records are no longer unusual, the consistently warm weather
in 2015 made it one of the hottest years in recent decades.
9 OUT OF 10
FRENCH CITIZENS
ARE IN FAVOUR OF A CUT
IN SUBSIDIES IF FARMERS
DO NOT COMPLY WITH THE
RULES ON ANIMAL WELFARE,
THE ENVIRONMENT
AND FOOD SAFETY.
88%
OF FRENCH
CITIZENS
SAID THEY AGREE
WITH THE “GREENING”
ASPECTS OF THE CAP.
Source: Eurobaromètre CEE
In terms of temperature, precipitation and sunlight levels compared with
the averages over the last three decades, 2015 looks to have been a record
shattering year. With relatively high temperatures in spring and summer and
an exceptionally mild end to the year, 2015 almost hit the highs of the 2011
heatwave.
In April 2015, the temperature at the Tours weather station was measured at
28.3°C, compared with 29.2°C in April 2005. In July, one record fell, with 37.5°C
being reached, although August’s temperatures were significantly below those
of the 2003 heatwave.
The most surprising months were November and December. In November,
temperatures peaked at 22.3°C (an absolute record) and did not fall below
14.9°C, whereas the average lows for the month usually hover around 5.9°C.
The annual level of precipitation was some 10% lower than normal, and
June and July were very dry months. However, August and September saw
a number of storms, and there were some noteworthy examples of sporadic
heavy rainfall (e.g. 38 mm fell in four hours in Tours on 13 September).
More than records, the persistence of these weather phenomena is particularly
striking. Twenty or thirty years ago, the country was swept by westerly winds,
whereas northerly and southerly winds are now preventing atmospheric
disturbances.
This consistency has provided excellent conditions for the harvest of grapes
and other crops.
Source: Météo France and la Nouvelle République
BNP PARIBAS WEALTH MANAGEMENT I 7
01
RURAL LAND IN
2015
Agricultural
land market
Land prices continue to rise, even though profits
from farming are falling.
€353,000
Average farm price
8 I AGRIFRANCE - RURAL REPORT IN 2016
According to a report by the Chambers of Agriculture, average
farm costs are €353,000, but yield profit of less than 1%. Against
a general backdrop of falling prices and farming income, land
values continue to rise in line with the sector consolidation
trend. Between 1955 and 2010, there has been a fourfold
reduction in the overall number of farms. Farming statistics
put the total number of farms at 300,000 in 2025, compared
with 515,000 today. Given this trend, the need to finance land
and farming capital is becoming vital, and those working in the
sector are exploring new sources of financing: crowdfunding,
land investment by external investors, etc.
But for the first time, the pace
of growth in farmland prices slowed
in 2015.
In France, the average price per hectare of farmland was
€5,835 compared with €5,675 in 2014. Year-on-year, the
average price rose by just 2.8% in 2015, versus 6.2% in 2014.
This slowdown should be seen in the context of falling farm
income and product prices.
The best grain-growing areas dominate the top
end, with prices at more than €15,000 – or even
€20,000 – per hectare. Notable among these are the
Nord Pas de Calais region, the Santerre, Champagne
Crayeuse and Saint Quentinois areas, and certain
areas in the south of France, such as La Crau, or
the Durance Valley. Land prices in the cheapest
areas are between €2,500 and €3,000 per hectare,
for example, in Mayenne, in the Jura region or the
Morvan.
FREEHOLD FARMLAND
FRANCE AVERAGE
€ 5,835
PER HECTARE
(+2.8%) 2015/2014
(+5.3%) over 10 years
€7,500
Freehold land
€6,500
France average
€5,500
Freehold grassland
€4,500
€3,500
€2,500
Source: Valeurs vénales
Price per hectare
The average price for leased farmland went up by
6% year-on-year in 2015 to €4,795 per hectare, a
much greater percentage increase than for freehold
farmland. This increase was particularly marked
for grain-growing areas, at 8.1% versus 2.8% for
grassland.
LEASED FARMLAND
AVERAGE GROSS RENTAL YIELD ON LEASED LAND:
+3.5%
LEASEHOLD LAND
€1,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Farmland prices in France 2006-2015
2015/2014
France leased average
2015
2014
€4,795
€4,525
+6.0%
Arable land (avg.)
2015
€5,870
€5,430
2014
The price of arable land continues
to outstrip pasture land.
AVERAGE LAND
€7,020
PRICE PER HECTARE
(+5.8%) over 10 years
+8.1%
Grassland (avg.)
2015
2014
€3,720
€3,620
+2.8%
POLYCULTURE/PASTURE LAND
€4,650
PRICE PER HECTARE
(+4.7%) over 10 years
The hierarchy of prices between the different types
of farming remains unchanged: the average price per
hectare of arable land is €7,020 (+2.5%), versus €4,650
per hectare (+3.3%) for polyculture/pasture land, i.e. a
difference of around 20% compared with the national
average.
In terms of profitability, the gross rental yield on leased
land stands at an average of 3.5% per year, while the
average rent is €166 per hectare. Depending on region
and land type, the average gross rental yield varies
between 3.9% for grassland and 3.2% for grain-growing
land.
These yields are a very positive sign, and in the current
economic environment, we are seeing an increase in the
number of non-farming investors. As such, investment in
farmland remains particularly attractive as a means of
diversifying or transferring assets.
BNP PARIBAS WEALTH MANAGEMENT I 9
Source: Valeurs vénales
Meanwhile, over the last ten years the supply of farmland has
increased by 5.3% per year. Moreover, farmland remains much
cheaper in France than in other European countries.
01
RURAL LAND IN
2015
Vineyards
10 I AGRIFRANCE - RURAL REPORT IN 2016
WINE
2015 was a very good year.
With a harvest equating to 47.9 million hectolitres, France was edged into
second place by Italy in 2015. Nonetheless, production rose by 2% on the
previous year, and by 5% compared with the average for 2010-2014.
Industry professionals are expecting a very high quality vintage for 2015
thanks to favourable temperatures, plenty of sunshine and excellent harvest
conditions.
15
5
2
5
5
7
2
0
0
-5
-10
-7
1
4
-2
-5
-1
-6
2015/2014
-15
9
7
2015/2010-2014 average
-14
-20
FRANCE
Champagne
Burgundy
Alsace
Loire Valley
Bordeaux
region
Languedoc
Source: Agreste
10
South-East
Wine production in France and its main regions (in %)
47.9
Looking at exports, wines and spirits had a record year in 2015, with sales
up 8.7% at €11.7 billion. With a positive trade balance of €10.4 billion, wines
and spirits are France’s second most valuable export, after aeronautics
(€22.2 billion), and are ahead of perfumes and cosmetics (€9.2 billion).
million
HECTOLITRES
2015 HARVEST IN FRANCE
15
Source: FEVS
10
5
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TRADE
BALANCE
x2
BETWEEN 2004 AND 2015
2015
Trade balance 2004-2015 (€ billion)
It is worth noting, that for the third consecutive year and due to small
harvests, there was a 3.6% reduction in the volume of wine exported in 2015.
Sales of French wines and spirits to the USA – the main purchasing country,
accounting for 22.2% of exports – went up by 28% to €2.6 billion. In terms of
export sales, the USA is followed by the UK (11.8%), Germany (7.3%), China
(7.1%) and Singapore (6.8%).
In this flourishing market, some industry professionals are arguing for an
increase in vineyard areas in order to boost volumes and capture market
share, especially of entry-level wines. Planting of 8,000 hectares of vines
is planned, including for what used to be known as «table wine» (vin sans
indication géographique or VSIG).
2
bottles
out of 5
are not produced in
the country where
they are drunk. In
recent years, the
markets have become
increasingly global.
BNP PARIBAS WEALTH MANAGEMENT I 11
01
RURAL LAND IN
2015
In the Centre-Val de Loire
region
Significant rainfall in September meant
the harvest took place earlier than usual.
Compared to the previous year, 2015
saw an abundant harvest. Nonetheless,
the summer drought had a noticeable
impact on crops in the Cher département.
Sales of Sancerre and Pouilly-Fumé rose,
driven by exports to the USA. For Cabernet
d’Anjou and Crémant de Loire, sales held
up well, although the Anjou and Saumur
appellations make little impact on the
export market.
In the Bordeaux region
Rain at the end of August benefited the vineyards.
The harvest, which took place under good
conditions, was completed at the end of October.
Quantities only just matched those of 2014, as the
rain came too late for the white wine grapes. In the
rest of south-west France, the harvest was a week
earlier than in previous years. Despite greater
pressure on vine health at the end of the cycle in
some départements, potential production should
exceed the 2014 level. The recovery in the Chinese
market boosted sales after two years of decline.
This market is becoming more sophisticated and
is now turning its attention towards mid-range
wines. Between September 2014 and September
2015, exports to China rose to 432,000 hectolitres,
an increase of 14% year-on-year.
12 I AGRIFRANCE - RURAL REPORT IN 2016
In Languedoc-Roussillon
The harvests took place under healthy vineyard conditions,
thanks to a return to drier weather from mid-September
onwards. Rain from mid-August enabled the veraison
(change of color of the grape berries) period to continue after
the summer heatwave. Production was expected to outstrip
2014 levels. In Corsica, the harvests took place in favourable
weather conditions. The last heavy rainfall of October came
after all the grapes had been harvested.
Sales rose by 23% between 2012 and 2014, and profitability
is improving. However, the rise in bulk prices has yet to fully
offset the small harvests.
in Champagne
The vineyards appear very healthy, with no rot
observed. The harvest took place early in 2015, with
the grapes being picked in September. Production fell by
7% year-on-year in 2015, due to the summer drought,
and was down by 5% compared with the average for
2010-2014.
On the sales side, the global appetite for champagne
shows no sign of receding, and France remains the
world’s leading producer of sparkling wines, ahead
of Italy and Spain. Global consumption (15.4 million
hectolitres) has shot up by 30% in the last ten
years. Champagne sales hit a record high in 2015,
at €4.75 billion, representing more than 310 million
bottles sold. Sales in France recovered in 2015, after
a slowdown lasting several years, with 162 million
bottles sold. As for exports, the USA became the second
biggest foreign market (19 million bottles) after the UK.
In Burgundy
and the Beaujolais region
The harvests, particularly of red wine grapes, were
affected by the drought and heatwave during the
summer, although it was possible to maintain the
grapes in a perfectly healthy condition until the
harvest. In Beaujolais, production plummeted. The only
exception in this region was the Yonne département,
the most westerly area, where production outstripped
that of the previous year. The region’s production fell
by 14% compared with 2014, and by 6% versus the
average for 2010-2014. In the last three vintages, the
region has lost 35% compared with a normal harvest.
The drop in production has led to a sharp rise in prices.
For example, pinot noir prices in supermarkets have
gone up by 10% in a year. Fortunately, however, stocks
increased by 13% between 2014 and 2015. They had
reached a critical level with just eight months’ of stock
left. Exports went up 5% over the first nine months of
2015, with sales totalling €549.4 million. Four markets
illustrate this momentum well – Canada, Japan, Hong
Kong and the USA – which thanks to a favourable euro/
dollar exchange rate, represented an increase of 15%
on 2014, at €135.3 million.
In Provence and Côtes-du-Rhône
The harvests, which had begun early, were stepped up
in the Mediterranean départements because of heavy
rain. Some production was lost to an outbreak of black
rot (a fungal disease) in the Vaucluse. Production was
down by 1% on 2014, which had been an exceptional
year for quantity, but remained 9% ahead of the fiveyear average.
The Côtes-du-Rhône market is healthy, while the
market for Provence wines is very healthy. At €139/hl,
the price of red Côtes-du-Rhône has gone up by 29%
compared with 2010. In Provence, the average price
for rosé has jumped by 50% since 2010, and has
settled around €210/hl. Provence rosés have become
extremely popular with US buyers. The USA has become
the biggest overseas market, accounting for the export
of 22 million litres between January and September
2015 (+32% versus the same period in 2014). At this
level, wine merchants are struggling to keep up with
demand.
Evin law relaxed after pressure from
the wine trade
Wine tourism has become a key element of the strategy
for promoting France as a destination on international
markets. Last year, French MPs approved an amendment
to article 13 of the Evin law on alcohol advertising. The
new text makes it possible to promote a wine-producing
region and its cultural, gastronomic and countryside
heritage, without this being considered as advertising that
contravenes the law. The Prime Minister, the Minister of
the Economy and the President have all supported the
amendment to the Evin law in the hope that it will boost
employment in wine tourism. An estimated 10-12 million
people already visit French winemakers every year. This
initiative is intended as a response to competition from
the wine tourism sectors of Italy, Spain, South Africa and
California.
BNP PARIBAS WEALTH MANAGEMENT I 13
01
RURAL LAND IN
2015
PRICE FOR 1 HECTARE OF VINEYARD LAND:
FROM LESS THAN
15,000
€
TO MORE THAN
15,000,000
€
WINE-GROWING LAND
Prices generally on the increase.
In 2015, the average price of vineyard land in
France was around €140,000/ha. Prices have
generally recovered over the last 10 years, and are
rising by 6% per year. It is worth noting, however,
that prices differ hugely from one appellation to
another.
While the terroir, surface area, plantation type and
general condition are key aspects in the valuation
of vineyards, prices are also closely linked to the
health of the wine market, especially in terms of
exports. At the top end, there is limited supply for
structural reasons, and prices are rising strongly.
At the mid and low ends, the market has improved
following a period of restructuring (grubbing-up
schemes and reforms of planting rights).
14 I AGRIFRANCE - RURAL REPORT IN 2016
In the Bordeaux region, wine-growing land
costs €23,570/ha, compared with €39,310/ha
ten years ago. In Saint Émilion, prices have risen
by 11%, and range between €230,000/ha and
€1,290,000/ha. Prices in Saint Estèphe vary from
between €374,000/ha and €663,000/ha. The most
prestigious appellations, meanwhile, fetch far higher
prices: Margaux and Saint Julien are generally above
the €1,000,000 mark, at between €1,100,000 and
€1,382,000 per hectare. Pauillac holds the record
for the highest average price, at between €2,100,000
and €2,679,000. Although the average for Pomerol is
around €1,000,000, it holds the record for the highest
price in the Bordeaux region, with €2,900,000/ha.
Champagne still leads the market, although
prices plateaued in 2014 and fell by 2% in 2015, to
€1,200,000/ha. Over the last ten years, the price of
vineyards has nonetheless increased by 4% per year.
Source: Valeurs Vénales 2015
Loire valley
Anjou: €18,000/ha
Saumur Champigny:
€64,500/ha
Bordeaux region
Bordeaux Rouge: €23,570/ha
St Emilion: €1,290,000/ha
St Estèphe: €663,000/ha
Pauillac: €2,670,000/ha
Margaux - Saint Julien:
€1,382,000/ha
Pomerol: €2,900,000/ha
Champagne
Champagne:
€1,200,000/ha
Burgundy
Grands Crus: > €15,000,000/ha
Premiers Crus: €1,500,000-2,500,000/ha
Villages: €600,000-€1,000,000/ha
Beaujolais
Beaujolais: < €13,000/ha
Beaujolais Crus: €50,000-€100,000/ha
Côtes du Rhône
Hermitage: €1,230,000/ha
Côte-Rôtie: €1,176,000/ha
Châteauneuf du Pape: €422,000/ha
Gigondas: €175,000/ha
Vacqueyras: €119,000/ha
Côtes du Rhône Villages: €32,000/ha
Côtes du Rhône: €28,000/ha
Provence
Côte de Provence: €60,000/ha
Bandol/Cassis: €150,000/ha
Maximum prices in 2015 for vineyard land
(in €/ha)
In Burgundy, prices remain very high at the top
end. For a Côte de Beaune or Nuits village appellation,
prices start at €600,000/ha and rise to around
€1,000,000/ha. For premier cru names, prices range
from between €1,500,000/ha to €2,500,000/ha.
For a terroir with grand cru status, the price can top
€15,000,000/ha, which is a world record.
In the Beaujolais region, prices are still low at
entry level, at less than €13,000/ha. On the other
hand, Beaujolais cru prices are in the €50,000100,000 range per hectare, and rose by 1% in 2015.
In a very tight market in the northern Côtes
du Rhône, prices for Côte-Rôtie or Hermitage often
exceed €1,000,000. In 2015, average prices rose by
5% for the Hermitage appellation, to €1,230,000/ha,
while for Côte-Rôtie, prices edged up just 1% versus
2014, to €1,176,000/ha.
In the southern Côtes du Rhône, prices for the
Côte du Rhône AOP rose by 6% to €18,000-28,000/ha,
while Côte du Rhône Village fetches €32,000/ha.
Châteauneuf du Pape, which saw prices rise by 2%,
is still the region’s most expensive appellation, at
€422,000/ha. For Gigondas, prices went up by 6% to
€175,000/ha. Vacqueyras prices increased by 7.5% to
€119,000/ha.
In the Loire Valley, demand is mainly local.
External investors have not shown much interest
in this region, although it offers a number of
advantages. There is little variation in the market
in the Loire Valley. Prices range between €18,000/ha
for Anjou and €64,500/ha for Saumur-Champigny.
In Provence, the vineyard market is very active,
mostly in relation to rosé wines. Bandol and Cassis
prices are steady at around €150,000/ha. Prices for
Coteaux d’Aix have stabilised at €45,000/ha, while for
Côte de Provence, the price is around €60,000/ha. In
coastal areas, prices are falling, with the maximum
standing at €115,000/ha.
BNP PARIBAS WEALTH MANAGEMENT I 15
01
RURAL LAND IN
2015
FORESTS
16 I AGRIFRANCE - RURAL REPORT IN 2016
Timber market
on a positive trend since 2008
The catch-up effect observed since 2008 has
continued. Medium-term prices have risen. In 2015,
price levels were generally favourable, and forestry
operators brought significant volumes of timber to
the market. The downturn recorded in softwoods in
the first half of 2015 had no impact on the volume of
timber offered for sale.
BNP PARIBAS WEALTH MANAGEMENT I 17
01
RURAL LAND IN
2015
Hardwoods I good results for
oak and beech.
The year began with some question marks
regarding oak. The main concern was about
secondary quality wood, which had previously
been taken up by the Asian market. However, the
sales results swept away any fears: almost all oak
lots (94% of volumes) found a buyer. Moreover,
at the top end of the market, oak lots fetched
€301/m3. For lower quality wood (sleepers),
prices were generally less spectacular, coming
in below €100/m3.
A pleasant surprise came from beech, which
continued its recovery. Large diameter trees
(5 m3) sold for €86/m3, a price not seen for a
number of years.
After the outbreak of ash dieback, a fungal
disease, volumes are increasing again (22,000 m3
in 2015, up from 16,000 m3 in 2014). Results for
the year were mixed: three-quarters of the wood
found buyers, but the average price fell from
€93/m3 in 2014 to €70/m3 in 2015.
Demand for poplar wood fell compared with
2014. The volumes brought to the market
fell from 44,000 m3 to 32,000 m3, but prices
remained broadly flat at €32.99/m3.
Oak
140
2015 2ND HALF
94%
92%
89%
2014 2ND HALF
2013 2ND HALF
Oak
100
Beech
2014 2ND HALF
Beech
Poplar
20
2013 2ND HALF
Poplar
2015 2ND HALF
2014 2ND HALF
2013 2ND HALF
2004
2005
2006
2007
2008
Hardwood prices (in €/m3)
2009
Source: CDC, Asffor Experts forestiers and Agrifrance
2010
2011
2012
2013
2014
2015
49%
47%
56%
Ash
2015 2ND HALF
2014 2ND HALF
74%
67%
2013 2ND HALF
94%
Breakdown of wood volumes sold at auction
as a proportion of the total
18 I AGRIFRANCE - RURAL REPORT IN 2016
Source: Experts forestiers de France
60
90%
84%
83%
2015 2ND HALF
Ash
Cop21 Forest operators are closely
monitoring the debate on carbon
pricing.
CO2 capture largely depends on the
natural mechanism of photosynthesis.
Trees capture CO2 from the atmosphere
when they are growing. Their carbon
stock increases with the age of the tree.
An estimated 20% of CO2 emissions is
currently offset by forests, which are the
main contributor to the mitigation of
climate change.
Softwoods I prices are falling
The market has been broadly flat, despite the downturn in the
construction sector.
Prices for Douglas fir timber varies depending on the wholesaler. The
price of wood of less than 1 m3 went up, while the larger Douglas fir
categories did less well, mainly due to the lack of appropriate sawing
equipment for this type of product. At the top end, prices approached
€80-100/m3, although most sales were concentrated at around the
€50/m3 mark.
The price of 50 cm spruce timber went down by 9-10%, although
prices for the smaller categories were maintained.
There was little change in the volume of white pine sold, and prices
remained stable at around €40-45/m3, depending on the category.
The average price of maritime pine fell below €35 m3.
Douglas fir
60
2015 2ND HALF
Douglas fir
2014 2ND HALF
77%
78%
95%
2013 2ND HALF
50
Maritime pine
40
73%
94%
89%
2014 2ND HALF
2013 2ND HALF
Spruce
Maritime pine
87%
82%
96%
2015 2ND HALF
30
2014 2ND HALF
2013 2ND HALF
2004
2005
2006
2007
2008
Softwood prices (in €/m3)
2009
Source: CDC, Asffor Experts forestiers and Agrifrance
2010
2011
2012
2013
2014
2015
Pine
2015 2ND HALF
2014 2ND HALF
2013 2ND HALF
71%
82%
92%
Source: Experts forestiers de France
2015 2ND HALF
Spruce pine
Breakdown of wood volumes sold at auction
as a proportion of the total
BNP PARIBAS WEALTH MANAGEMENT I 19
01
RURAL LAND IN
2015
Forest land
In a low interest rate environment, and thanks to its diversification and safe
haven properties, forest land is still in demand, although prices are high,
or even overvalued in terms of technical value in some cases.
20 I AGRIFRANCE - RURAL REPORT IN 2016
112,700
101,600
Overall, the amount of forest land sold has
increased over the last five years, including
in the segment of forests covering an area
greater than 100 hectares.
113 ,100
106,500
Total
More than 100 ha
Source: SAFER
The amount of forest land
for sale is on the increase
108,100
33,400
28,300
2010
2011
31,200
2012
29,300
26,300
2013
2014
Forest land sold (in hectares)
Prices vary according to segment
We note an increasing trend for the highestquality and largest forests to attract a premium.
Whereas the average price for forest land has
settled at around €4,000/ha, prices in the
100 hectare-plus segment saw faster growth
between 2013 and 2014.
Since 1998, French forest land has increased in
value by an average of 4-5% per year, while the
CAC 40 – despite rising strongly in 2000-2008 –
has gone up by only 3% per year over the same
period.
€12,000
Maximum price
€10,000
Price for forests
of more than 100ha
€8,000
€6,000
Average price
€4,000
Source: SAFER
Prices vary considerably, from €650/ha to
more than €11,500/ha, which reflects marked
differences in the type of property sold. The
price of forest land depends on wood quality,
surface area, location and ease of access to
plots. The most expensive forests are in the Paris
Basin (€10,000/ha upwards), western France
(€5,000/ha) and eastern France (€4,500/ha). The
cheapest forests are in the south of France.
€14,000
€2,000
0
2009
2011
2013
2014
Forest land prices (average price per hectare)
250
Avg. price/
forest land
200
Max. price/
forest land
150
CAC 40
100
50
1997
1999
2001
2003
2005
2007
2009
2011
2013
2014
Average and maximum forest land price versus CAC 40 (base 100 - 1997)
BNP PARIBAS WEALTH MANAGEMENT I 21
Source: SAFER/INSEE
The market for forests covering more than 100
hectares represented 120 transactions in 2014,
with 29,300 hectares sold, equivalent to around
26% of total sales, and less than 1% of total
forest land.
02
Focus
OAK BARREL STAVES
– A MARKET
SUCCESS STORY
22 I AGRIFRANCE - RURAL REPORT IN 2016
A
s the beneficiaries of more than 2,000 years
of tradition, barrel makers have always
played a major role in trade and
economic development. Wine, like many
manufactured products, needs special
packaging to be transported effectively. Mesopotamian
goatskins, then earthenware jars and Gallo-Roman
amphorae have made way for the barrel, which was
invented by the Gauls. A less fragile vessel that could
be rolled, making it easier to transport, the barrel has
gradually become the standard container used by the
wine trade.
Since the mid-20th century, barrels have been used
in the production of fine wines, and are now a tool
of the trade, rather than just a container. The world’s
top winemakers now use barrels to imbue their wines
with the tannins necessary to produce the very best
vintages.
This year, we have decided to bridge the worlds of wine
and forestry with an in-depth look at oak barrel staves
– a market success story.
Without significant quantities of the highest quality
wood, there would be no such story. This is why we
have decided to focus the first section on the forestry
sector. As is the case for wine, French forests benefit
from conditions that are highly favourable to the
production of wood for staves, thanks to “oak crus”
and “forest terroirs” that produce top-quality timber.
In the second section, we look at the barrel making
process. This ancient skill, developed over centuries,
is now becoming a more technical, value-added
activity, thanks to new technologies and innovation.
Lastly, we complete our analysis with a detailed
presentation of the French forestry sector, which ranks
first worldwide.
BNP PARIBAS WEALTH MANAGEMENT I 23
02
Oak barrel staves
– a market success story
6 million
hectareS
France produces more oak
than any other european
country and ranks second
worldwide, behind
the United States.
24 I AGRIFRANCE - RURAL REPORT IN 2016
French forestry
is a world leader
Picardy
Forêt de Compiègne
Parisian Basin
Forêt de Fontainebleau
Pays de la Loire
Forêt des Jupilles
Auvergne
Forêt de Tronçais
Alsace Lorraine
Forests of the
Vosges, Darnay
and Haguenau
Centre
Forests of Blois,
Loches
and Chateauroux
OAK
FRENCH FORESTRY
16 million
Source: Agrifrance
hectares
INCLUDING
10
million
hectares OF HARDWOODS
Main sources of stave oak in France
Major production areas
Of the 250 species of oak existing anywhere in the world today, just two account for most
of the wood used for staves. These are pedunculate oak (quercus robur) and sessile
oak (quercus petraea). These two species are very well represented in French forests,
occupying 15-20% of forested land.
French forestry is the uncontested leader in this very high-end segment of the market,
producing more oak than any other European country, and ranking second worldwide,
behind the USA. While the USA has vast quantities of oak, it is generally white oak (quercus
alba), a low-tannin species, that tends to add less subtle flavours to the wine.
As is the case with wine, the “forest terroir” used to produce wood for staves shows that
some forested areas are particularly suitable for the production of high-quality wood, such
as the most famous forest, the Forêt de Tronçais in the Allier department.
STAVE WOOD
<10%
OF OAK
HARVESTED IN FRANCE
(around 250,000 m3 per year)
30%
OF TOTAL
OAK SALES BY VALUE
BNP PARIBAS WEALTH MANAGEMENT I 25
02
Oak barrel staves
– a market success story
Highly favourable soil and climate for the best “oak crus”
Average temp
Rainfall
Sunlight
in °C
in mm/yr
in hrs/yr
Oak
requirements
Species
Pedunculate
oak
10 to 15
700 to 1,200
1,800
Station climate
resources
Average
climate data
Bourges
(Berry)
10.9
705
1,770
Example: pedunculate oak. Comparison between the climatic requirements and average climate data
for the Centre region
26 I AGRIFRANCE - RURAL REPORT IN 2016
Sources : Guide des forêts de France
de G. Plaisance & Météo France.
The key characteristics of these forested areas are their soil and climate. The bioclimatic needs of oak trees
depend on their water supply, and temperature, light and wind requirements. Soil is also important for the
supply of nutrients. An analysis of technical production data shows that France is particularly suitable for
growing oak trees. Located between the Equator and the North Pole, at a latitude of between 43° and 51° north,
France has a temperate climate, and therefore does not suffer tropical heat or polar frosts.
A long tradition of timber
management and production
It was Colbert who initially identified certain
French regions for the production of high-quality
oak timber in an ordinance of 1669. At that time,
the French Navy needed long lengths of timber
for naval construction, especially to make masts
for ships.
Highly prized by barrel makers in today’s market,
the oak produced in these regions is mainly
intended for sawing, rotary cutting, slicing and
other “noble” uses of timber (see map page 25
showing the main sources of stave oak in France).
Lumber
7m
Carpentry
2.3 m
Barrels,
furniture
and slicing
Base index: March 07
140
120
100
80
2007
2008
2009
2010
2011
2012
2013
2014
2015
Oak with min. diameter of 50 measured 1.3 m from the ground
3.8 m
Source: “Les terrains boisés,
leur mise en valeur”, Institut
pour le Développement Forestier
Wood
for grinding
or burning
With 80% of the supply, the French National Forests Office
(ONF) is the largest producer of stave wood. To ensure
the regular and homogenous quality of their products,
barrel makers also buy wood from forests in neighbouring
countries, such as Switzerland (Neuchâtel), Germany
(Palatinat), Luxembourg (Ettelbruck), or certain forests in
Hungary or Romania, albeit to a very limited extent. Since
2013, demand has been strong, and oak prices have climbed
by 30%. The price of split oak can exceed €2,000/m3, while
the roadside price is close to €550/m3 or more, depending
on the quality and grain required.
Average unit price for standing timber sold by the ONF
Source: French National Forests Office
BNP PARIBAS WEALTH MANAGEMENT I 27
02
Oak barrel staves
– a market success story
Know-how developed
over centuries
is becoming increasingly
technical
The main stages of making a stave,
and then a barrel
1
Log
oak trunks with branches
removed, with/without
bark
2
Batten
log cut into lengths
of 100 to 110 cm
3
Quarters
the batten is cut
by splitting
4
Doublon
each quarter is a doublon
split into 2 raw staves
5
Dry staves
after drying for 9 to
36 months, 2 raw staves
become 2 dry staves
Production of staves: from the log to the stave
Only 20% of logs will become
barrels.
from 5 m3 of logs, 1 m3 of stave
wood can be obtained which,
after processing, will produce
10 or 11 225-litre barrels.
It takes an average of
2,000 hammer blows to make
1 barrel.
28 I AGRIFRANCE - RURAL REPORT IN 2016
Drying
Felled wood has a humidity level of 60-80%, which must be
reduced to 20% by drying for between nine months and three years,
so that it is stable enough to work on. To ensure sufficient rotation
and drying time, stave producers need to have substantial wood
stocks, which explains why they have a very high working capital
requirement.
Kept in piles, the wood will lose water and volume until it becomes
solid and resistant, while maintaining its flexibility. This drying
process also enables the humidity to be reduced gradually, and
eliminates the harshest and most astringent tannins more
effectively, ensuring better quality. Exposure to rainwater and air
also helps essential flavour precursors to develop before “toasting”.
Why did oak become the wood of
choice for barrel making?
Its high resistance to rot and
microbial attacks has contributed
over time to making oak the wood
of choice for wine barrels. Oak offers
excellent:
1/ mechanical qualities, such as
strength, solidity, thermal isolation
1
Preparation for
assembly
20 to 32 staves are
assembled together
2
and impermeableness, while enabling
an efficient exchange between the
content and oxygen (microporosity).
2/ chemical characteristics,
bringing interesting flavours
(e.g. vanilla, whisky-lactones, eugenol)
and extractable phenolic compounds
(e.g. tannins, lignins, phenolic acids).
Assembly
“mise en rose”, the staves
are placed in a circle
to form a “rose”.
3
HEATING
key moment of the
process with final curve
of the staves and release
of the aromatic qualities
from the oak
Nonetheless, barrels have some
disadvantages. They have a limited
life and if not completely airtight,
evaporation can occur, requiring
the barrel to be refilled to the top
to minimise the «headspace» of air
between the wine and the top of the
barrel, known as ullage.
4
Finishing
mounting the base,
planing, signing, etc.
Production of barrels
First stage
of the assembly
A barrel is made up of around 20 to 32
staves (curved wood sections) held
together by iron hoops. This first stage
of the assembly is called the “mise en
rose” in French (the craftsman places
the staves in a circle with a truss ring
surrounding them to form a “rose”). The
barrel is then moistened and heated
in a process known as “bousinage” or
toasting.
Toasting
Final assembly
This stage is a key moment in the process
of giving wine its aromatic qualities,
and comprises two steps: bending and
heating. Depending on the region, fire,
steam or boiling water may be used in
the bending process (in which the barrel
is shaped), and when the barrel is heated,
the final curve of the staves is fixed, and
aromatic molecules are released from
the oak. Expert barrel makers tailor this
stage to the specific requirements of
each customer.
The barrel maker then finishes the
assembly of his barrel, sands and planes
the outside surfaces, and takes off the
assembly hoops and replaces them with
the final hoops. The barrel will then be
tested to check that it is watertight and
has no defects, before being delivered to
the customer.
It is now ready to receive the wine, which
will become enriched with tannins
and undergo a very slow process of
oxygenation.
BNP PARIBAS WEALTH MANAGEMENT I 29
02
Oak barrel staves
– a market success story
FRANCE
No. 1
PLAYER
IN THE BARREL
MARKET.
OAK BARRELS ARE USED
IN AROUND
2%
OF GLOBAL
WINE PRODUCTION.
30 I AGRIFRANCE - RURAL REPORT IN 2016
A key French
industry dedicated
to fine wines
With 75% of global production of barrels in 2014, France is
the number one player in this market. France is the leading
producer of wooden packaging in Europe and has a barrel
industry with a history of excellence.
Oak for barrels
in figures
Standing price
€150-400/m3
Roadside price
€350-550/m3
Barrel making in France
Annual production:
550,000 barrels,
i.e. 75% of global
production
Trade surplus: €327,000,000
Stave price
€2,200-2,500/m3
66%: Proportion of
production exported
Barrel price
€700 on average
for French oak
Around 60 barrel makers and
1,900 employees, with 1,500
at barrel makers and 400
at stave mills
BNP PARIBAS WEALTH MANAGEMENT I 31
Oak barrel staves
– a market success story
No. of companies
Barrels
60
178
Pallets
A trade surplus of €327.4 million in 2014
The balance of the wooden packaging sector is in surplus. In the
barrel segment, 66% of production was exported in 2014. The outlook
differs depending on the product category: the barrel segment has
a positive trade balance, whereas the other segments import more
than they export. With globally recognised know-how, barrel making
is positioned in high-end products and benefits from an excellent
international reputation. A significant portion of barrel sales are
recorded outside France, with export sales accounting for 49.7% of total
sales, compared with 6.3% for pallet manufacturers. Barrel making is
also more profitable. Its EBITDA margin (EBITDA/sales) in 2013 was
13.4%, compared with 4.4% for the other segments.
France exports most of its products to the European Union (39% of
exports in 2014) and the United States (37.5% of exports in 2014).
Sales (excl. tax) in €m
Barrels
192.9
488.3
Pallets
Sales per company in €000
4,823.5
Barrels
Pallets
2,743.7
Export sales as a proportion of total sales
Barrels
Commodities as a proportion of total purchases
(% of sales)
Barrels
48.3%
Pallets
32.5%
EBITDA margin (EBITDA/sales)
Barrels
13.4%
Pallets 4.4%
Key figures for barrel and wooden pallet
manufacturers (XERFI)
32 I AGRIFRANCE - RURAL REPORT IN 2016
49.7%
Pallets 6.3%
Source: XERFI/INSEE 2014
02
A positive economic environment and a favourable
outlook
In France, the overall packaging market grew by 2% in 2014. Barrel makers
benefited from this market improvement. Their high-end positioning and strong
value creation ability brings substantial bargaining power, enabling them to
raise their prices by 4.3% in 2014, compared with 2% for the sector as a whole.
The recent fall in value of the euro against the dollar has improved the position
of French barrel makers in the USA.
USD per 1 EUR
Source: XE.com
1.50
1.40
1.30
1.20
1.10
1.00
2011
2012
2013
2014
2015
BNP PARIBAS WEALTH MANAGEMENT I 33
02
Oak barrel staves
– a market success story
34 I AGRIFRANCE - RURAL REPORT IN 2016
66%
French export-oriented
production
34%
French production
marketed
in France
7%
Italy
Source: XERFI/INSEE
22%
USA
4%
15%
8%
South Africa
3%
Argentina
Australia
Other countries
4%
3%
New Zealand
Chile
Breakdown of French production of barrels and exports by country
A fragmented sector
The sector is mostly made up of SMEs and micro enterprises. However, we
are now seeing a wave of consolidation. Most barrel makers have become
vertically integrated operators that own their own sawmills or stave mills.
This ensures a secure supply, while optimising barrel quality.
400
Value in €m
327.4
Volume in 000 tonnes
200
30.8
0
-200
-13.1
-70
-23.5
-5.9
-19
Source: XERFI/INSEE 2014
France’s trade surplus in wooden packaging is solely due to barrel making.
Outside this segment, all other packaging categories have a negative
balance, with pallets showing the highest deficit.
-181.7
BASIC PALLETS
PALLET TRAYS
PALLET BOXES
BARRELS
Trade balance by product segment
BNP PARIBAS WEALTH MANAGEMENT I 35
02
Oak barrel staves
– a market success story
INTERVIEW
Jérôme FRANÇOIS,
Chairman of the Management Board of TFF GROUP
”Research and innovation
are key to the future
development of our
businesses.”
You head up TFF Group, the world’s leading producer
and distributor of oak barrels used for making and
ageing wines and spirits.
— What is the history of your company, which has its
origins in Burgundy, near Beaune?
Well, in 2010 we were proud to celebrate the 100th
anniversary of our company, which is still family-owned.
It was my great-great-grandfather, Joseph François, who
set up a workshop to make and repair barrels.
At that time, there were lots of small barrel makers who
quite often worked only part of the year, and many wine
merchants had their own barrel making facilities. As
you can imagine, our businesses have undergone radical
change since then.
We now operate on every continent, and our teams work
throughout the year, in both the northern and southern
hemispheres, always close to the wine production
locations.
36 I AGRIFRANCE - RURAL REPORT IN 2016
— What have been the main changes in recent years?
Concerning wine, the main change is that the barrel has
gone from being just a container to become a winemaking tool.
In the 1970s, our customers – mainly in the US – wanted
to enhance their best vintages by placing them in barrels
for a time so that they could take on new flavours,
particularly tannins.
In partnership with the world’s best winemakers, we
have developed a comprehensive range of products and
services to meet the new expectations of an increasingly
quality-conscious clientele.
External growth (the acquisition of companies in the
sector) and the search for new opportunities have largely
contributed to this development.
The systematic pursuit of diversification, particularly
geographically, prompted us to look for complementary
characteristics and synergies, always within our core
business area of wood products for wine and spirits.
So our activity gradually evolved from the traditional
market of wine, barrels, large containers and wine
products or timber work towards whisky around
ten years ago, and since then we have become the
uncontested leaders among independent barrel makers
in a market that is growing strongly. Today, our business
is evolving towards bourbon in the USA, a market in
which we have great ambitions.
— How would you sum up your last financial year?
— What are your future prospects?
2014-2015 looks to have been an exceptional year, in
every aspect.
We increased our revenue by 20.4%, to €204 million. Our
operating income rose by €10 million to €45 million, an
increase of 28.5%, and our operating margin remained
above 20% of revenue.
We operate in 80 countries, and 50% of our employees
are based outside France.
Our products are distributed by some 40 firms, under
around 30 different and complementary brands:
-Our activity in casks and barrels for use in fine wine
production still represents more than 50% of our
business.
TFF Group has consolidated its position as global
leader with a market share in excess of 30%. Although
this market may be considered a mature one, our
revenue in this segment went up by 11.7% over the
period, and we are continuing to pursue our external
growth strategy, particularly through acquisitions.
The global market for wine saw a pick-up in 2015 after
the slowdown observed over the last few years, which
was mainly because of small harvests in Europe and
the loss of vineyards worldwide.
Our complementary activity in wood products for
oenology accounts for 8% of consolidated revenue.
- Our activity in barrels for whisky production and
ageing also makes TFF Group the global leader among
independent barrel makers. Over the last ten years
or so, we have tapped into the strong growth in this
market by establishing or acquiring four barrel makers
in Scotland.
This segment now represents more than 35% of the
Group’s business.
Lastly, I should stress that last year’s export sales
benefited from favourable currency movements, after
several unfavourable years, which made a significant
contribution to our results.
In line with our diversification strategy, over the last year
we have put in place an ambitious plan to capture market
share in a complementary sector – whisky and bourbon,
where we can leverage our traditional expertise – which we
are aiming to make a new source of growth for our Group.
We are in the process of building a brand new barrel
making facility of over 20,000 m² in Ohio, which will initially
produce 130,000 barrels in 2016-2017. This will gradually
increase to 400,000 barrels per year. Our target is for
this activity to account for one-third of our consolidated
revenue. This should enable us to continue to balance the
relative weighting of our different businesses.
In the wine and whisky markets, our aim is to consolidate
our position, while maintaining very high levels of
profitability.
Finally, we are always looking to enhance the quality of
our wood and optimise our production processes, and
we continue to hold the strong conviction that research
and innovation are key to the future development of our
businesses.
TFF Group – some figures for 2015:
Consolidated revenue: €204 million (+20.4%)
Operating income: up €10 million to €45 million
(22.1% of revenue)
30%: Global market share
87%: Proportion of activity carried
out internationally, in 80 countries
40 locations, including 17 production facilities
in France, Hungary, Spain, Australia, Scotland
and the USA
754 employees worldwide, including 379
in France.
Agrifrance would like to thank TFF Group
for their interview and the visit of TFF Group in Burgundy.
BNP PARIBAS WEALTH MANAGEMENT I 37
02
Oak barrel staves
– a market success story
38 I AGRIFRANCE - RURAL REPORT IN 2016
Conclusion
and outlook
Through its export of high-end products, the French barrel making sector
is leading the way for the forestry industry. At a time when exports of
unprocessed logs is a controversial issue in France, and one of the solutions
is to put in place customs or tariff barriers, stave mills are forming
partnerships within the wine and spirits sectors and are still key players
in the wine world. Thanks to expansion overseas, California and Ohio
are now the promised land for French barrel makers. French barrel making
is following the development of the global wine trade and is an integral part
of the wine value chain.
This would not have been possible without having ideal conditions
for production and wood management, from the oak tree to the stave.
The French “forest terroir” is exceptionally favourable to timber
production. Moreover, thanks to long-established know-how, barrels
generate a substantial trade surplus and high value added. As a result,
the sector represents direct employment of almost 1,900 people in France.
The production process is now evolving towards new techniques and the
search for new markets. Nowadays, the relationship between oak and wine
is widely recognised, enabling new products to be developed. Through
innovation, R&D is redefining a sector that it would be wrong to consider
a ”traditional” one.
BNP PARIBAS WEALTH MANAGEMENT I 39
Glossary
Batten: felled tree cut into sections
Bending: the process of obtaining the
curved staves
Cask: spherical container, generally made of
wood, that can be used for wine, cider, eaude-vie or other liquids
Frost crack: crack or split in trees, stone or
the ground, caused by freezing
Heating: process whereby an item is heated
and then cooled gradually to increase its
strength
Log: a felled tree trunk, with branches
removed, with/without bark
Organoleptic: relating to the properties that
an individual experiences via the senses
Quarter: the piece obtained from a batten
after splitting
Robinia: tree or shrub of the Fabacae
family, whose main species is the robinia
pseudoacacia, commonly known as acacia
and also called false acacia or black locust
Shortening: the staves are all shortened to
the same length before being used in barrel
assembly
Stave: oak or chestnut wood, cut into
lengths and mainly used in barrel making.
Once bent or curved, a number of these
small planks are assembled within metal
hoops to form the body of the barrel. The
stave is made using the quarter piece
Timber: logs for sawing, rotary cutting,
slicing and other “noble” uses
Toasting: the final heating process; its
intensity will affect the wine being made
by adding flavours and tannins through the
oak staves
Tree ring: on a barrel cut in cross-section, a
ring indicating the amount of wood formed
during a growing season
Tun: large wooden cask used in wine
production that generally holds 50 to 300
hectolitres
Ullage: the loss of wine or alcohol through
evaporation from the barrel (around 5%)
40 I AGRIFRANCE - RURAL REPORT IN 2016
References and
abbreviations
ASFFOR: French Association whose
corporate object is to promote joint
forest investment in France
French National Institute for the
landscape and management
program for natural areas
Bureau de recherches géologiques
et minières (BRGM): the French
Geology and Mining Research
Institute
La France Agricole: a French
agricultural magazine
CDC: French public company wich
centralises notaries deposits. The
CDC also studies market trends of
wood in France
Chambers of Agriculture: regional
organisations for agricultural and
rural development
Doc’Eco, Group Information Centre
/ BNP Paribas Group
Fédération des Exportateurs de
Vins & Spiritueux de France (FEVS):
French union of wine and spirit
exporters
Eurobaromètre CEE
Experts Forestiers de France (EFF):
organisation that represents
forestry experts in France
Forêts de France: a French forest
magazine
FranceAgriMer: the French
National Farm Office of Agriculture
and Marine Resources and
Products
French Ministry of Agriculture
(Agreste)
“Guide des forêts de France” by
G. Plaisance: French publication
about forests
INSEE: (Institut National de
la Statistique et des Études
Économiques, pronounced /inse/)
is the French National Institute for
Statistics and Economic Research
Institut pour le Développement
Forestier, “Les terrains boisés,
leur mise en valeur”. The Institute
for Forest Development is the
La Revue des Vins de France: a
French viticultural magazine about
wine and wine tasting
La Nouvelle République: a French
newspaper
La Vigne: a French viticultural
magazine
“Le bois et le vin” (“Wood and
Wine”), by Roger-Paul Dubrion,
France Agricole /Campagne &
Compagnie
Les Douanes Françaises: French
customs office
Météo France: the French national
meteorological service
National Forests Office or ONF,
a public establishment of the
National Government of France
charged with the management of
national forests
SAFER: the French Land Use and
Rural Settlement Corporation
Valeurs Vénales: annual rating for
rural land prices
XE.com
XERFI/INSEE report, 2013
BNP PARIBAS WEALTH MANAGEMENT I 41
AGRIFRANCE
As part of BNP PARIBAS PROPERTY SNC - the BNP PARIBAS subsidiary dedicated to
real estate activities - AGRIFRANCE is the department specialising in rural property:
vineyards, prestigious country estates, farmland and forests. With over 40 years’
experience in this domain, AGRIFRANCE works hand-in-hand with its clients in their
personal wealth management.
Through a network of reputed professionals, AGRIFRANCE is also able to provide
complementary services, such as property appraisals and estate management.
Advisory services and
transactions in agricultural
real estate, vineyards,
forests and leisure
properties
BNP PARIBAS PROPERTY SNC,
33, rue du Quatre Septembre,
75002 Paris, France
Tel: +33 (0)1 42 98 43 51
Fax: +33 (0)1 42 98 43 53
A French general
partnership company
(SNC) with share capital
amounting to €1,200,000.
Registered in the Paris
Trade and Companies
Register under
n° 784 194 144 RCS PARIS.
Holder of professional
licence T 718 issued by the
Paris Prefecture of Police.
Guarantee BNP Paribas,
16, Boulevard des Italiens,
75009 Paris, France.
E.C. Identification:
C.E FR25784194144.
A BNP Paribas Group
company.
This paper is made from transformed potato waste
42 I AGRIFRANCE - RURAL REPORT IN 2016
This is a promotional
document, provided solely
for information purposes,
and under no circumstances
does it constitute an offer
or proposal effected in a
State (or jurisdiction) in
which such an offer or
proposal is not authorised,
or an offer or proposal
made to persons to whom
such an offer, proposal or
sale would be illegal.
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