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Wholesale Markets of France : centres of excellence for distribution
Dedicated to the sale of fresh produce and horticultural products, the Wholesale Markets of France are key sites for produce sectors. They play a major role in modern distribution channels because they group all the actors in one place, from production to distribution to the end consumer.
The purpose of the nineteen Wholesale Markets of France is therefore to meet the needs of all the commercial channels for fresh food products and to guarantee their plurality, to participate in maintaining traditional sectors, to bring production and distribution together, to actively contribute to regional development and the organization of urban areas and to preserve the environment and sustainable development.
The fact of grouping different types of operators in one place encourages the greatest possible diversity in terms of the choice of products and services. It helps maintain strong competition and keep prices down, while optimizing synergies through common infrastructures and services.
At the core of food sectors…
Positioned between upstream and downstream sectors, the Wholesale Markets are the essential “reference link” between production and final distribution, whether in trade or catering. As a result, their role is essential to maintain a strong, independent retail sector, which benefits from purchasing conditions adapted to it and the wherewithal to create a differentiation with larger brand stores. The Wholesale Markets play a role in the necessary plurality of distribution channels, because this is where hypermarkets rub shoulders with specialist independent shopkeepers or even street market stallholders. This diversity of formats is the strength of French distribution and it is what makes us different from many of our European neighbours, which have a more limited and standardized offer and range. The Wholesale Markets also help preserve green belts by promoting the consumption of local produce and short channels. In fact, local producers of fruit, vegetables,
flowers and plants in particular benefit from a privileged access to the Wholesale Markets’ trading floors, where they have a base to sell their produce to shopkeepers and restaurants directly. For example, there are nearly 170 producers with a permanent base at Rungis Market; this allows them to sell their productions to many different customers, including for export. Some of them work with the Market’s international customers, who can sometimes represent up to 40% of their turnover.
With the creation of the “Halles du Sud – Ouest” (South-West Markets) brand, the Toulouse Wholesale Market is very involved in this product-sector approach. “Our differentiation strategy is a major element of our commercial offer,” explains the market’s director, Paul Mirous. “Local productions represent the marketing plus in terms of diversity and quality, which should help the entire sector’s positioning at each stage of the distribution. New societal tendencies have led us to see the short channel trend as a long-term market trend that cannot be ignored, and our future actions will aim to promote the growth of local productions.”
Unique centres for diversity, product quality and know-how
The Wholesale Market operators have to constantly innovate to supply and satisfy the broadest panel of professional customers, whose needs are often very different. To do this, they have developed the breadth and depth of their lines. No other distribution format offers such a wide choice in terms of the “product” offer. Moreover, organized distribution has understood this, because it frequently comes to Wholesale Markets to set up a warehouse, a central purchasing office or because it is just looking to upgrade its offer or adapt it to the needs of the local clientele.
Variety and segmentation are key factors to market top quality products, particularly from reasoned and organic agriculture. Niche products do well here because of the diversity of the clientele and their needs, which is the best defence against the standardization that some actors in the sectors are keen to promote. dossierC
The quality and the wide choice of products sold at the Wholesale Markets are the tangible result of a perfect synergy between producers and wholesalers, stemming from both parties’ exemplary know-how (quality and variety of productions on one hand, marketing, customer know-how and product promotion on the other hand). This analysis is confirmed and backed by the producers themselves.
François Viot is an independent cress farmer with 14 hectares near Agen (47), who sells his production (2 million bunches/year) via the Wholesale Markets of France and England (80%) and in central purchasing agencies (20%). “We work with one or two wholesalers per Market,” he explains, “and we have a base at the Agen market. The Wholesale Markets are our goodwill, our distribution tool. They are important for us because they represent our only means to promote local produce for short channels, with a real answer in relation to the market. These are the champions of the short channel. The Wholesale Markets defend our products and assure the permanence of our productions. We have a good partnership with these markets and we are very satisfied with them. As for us, we need to be better organized and invest more to supply more to the Wholesale Markets, because they are our preferred channel.” As the manager of a 250-hectare farm (primarily pip fruit, vegetable, cereal and seed crops) near Angers (49), Bruno Dupont (President of the National Federation of Fruit Producers, President of the Sival trade show, board and bureau member of the Angers Wholesale Market) sells 70% of his fruit production for export (and long distance export) but he sells 100% of his market garden production (mostly heirloom vegetables) on wholesale markets. “Even though, as a general rule, the Wholesale Markets are handling lower volumes of fruit and vegetables than before, they are the best adapted and the most targeted when it comes to marketing specific, specialized products. This is the case with our production of heirloom vegetables. In this sense, producers and wholesalers have more in common that you might think. However, success means diversifying our professions and our know-how and playing a more collective game.
The wholesale markets’ role and their vocation is still to promote the products qualitatively, particularly French produce, as I have seen at Rungis. If there is a lack of sufficient French produce on the Wholesale Markets, their future may be jeopardized. Not to mention the important role they have to play in the short channels. The wholesalers have a role to play in the new approach to food that is taking shape, but it must be in partnership with the producers and with the prospect of specialized Wholesale Markets. Nevertheless, the Wholesale Markets need to make collective efforts in terms of image and communication to become better known.” The product quality recognized by all is only rendered possible by having adequate logistics and a continuous improvement service policy. dossierD
On the Wholesale Markets of France, we sell products in bulk, but we also know how to prepare, cut, package and deliver them; in a word we transform and adapt them to the demand and to new consumption trends. In these exceptional places, we manage flows, mass distribute, we host the offices of trade organizations and certain public services like the veterinary services, and we train youth. At Rungis there are many training centres dedicated to tomorrow’s fishmongers, restaurant owners, salespeople and import-export or logistics specialists. The Wholesale Markets ar the temples of French food know-how, the unique defenders of our gastronomy and our food, of course. They are real competence centres!
Furthermore, the Wholesale Market operators are particularly respectful and attentive to food safety and health standards and rules. The concentration of the parties involved simplifies the set up and use of common services that are easier to access (cold chain, traceability, onsite health services and controls, cleaning services, etc.).
The quality, traceability and safety of the food products reflect the commercial strategy of the Lille Wholesale Market, which created a quality charter called ASHA (Action Sécurité Hygiène Alimentaire) as of 2003, in partnership with the Institut Pasteur in Lille, as its director, Didier Delmotte, explains: “Our ASHA quality charter brings the consumer the guarantee of the Intitut Pasteur of Lille on several fruit and vegetables (potatoes, citrus fruit, peaches, nectarines, apples, kiwis) in terms of calories, nutritional qualities, vitamin and LMR (maximum residue level) content, with the commitment to be two times lower than the French and European standards. It brings together producers, operators, shopkeepers, consumers and UFC Que Choisir as a partner. Sold only on our Market at the price of normal products, our ASHA products are stamped by ASHA, Institut Pasteur in Lille, Lille Wholesale Market and the producer. In addition to the communication on these products, a website will soon be devoted to them (where to find them, recipes, nutrition department, etc.). This charter will be expanded to other products and we hope it will be copied by other Wholesale Markets in France».
Organizational tools for regional development
Wholesale Markets undoubtedly develop the organization of urban areas. Grouping operators leads to a useful concentration of supply flows in well positioned sites, close to city centres. Rungis is less than 7 kilometres from Paris, for instance.
These markets encourage urban logistics and a rationalized, controlled organization of urban goods transport. This is a priority today for local authorities, who want to reduce nuisance (noise, pollution and traffic jams mainly) while keeping business in the city centre, which is a key factor for a dynamic neighbourhood.
The Wholesale Markets are hubs with a regional or even international calling in some cases, so they help optimize urban logistics effectively, particularly with the delicate problem of the “last kilometre”.
They also play a major role in controlling goods flows by pooling logistics and deliveries, both upstream and downstream. The reference perimeters of Wholesale Markets are designed to bring together all perishable goods operators in the same place. The result is a system that rationalizes and reduces flows. Integrating Wholesale Markets into urban areas is a necessity and an economic reality, according to André Frey, director of the Bordeaux-Brienne wholesale market.
“The thirteen hectares of our Wholesale Market are integrated into the urban fabric of the city of Bordeaux, after having been at the city’s southern border. The city and the surrounding areas have been rethought, the urban centrality has evolved and our positioning has changed. Our Market has actually been through several operating and rehabilitation stages since it opened in 1963. Today, the Market’s design and its structures integrate some harsh economic realities (globalization, importation, etc.) rendered necessary in the context of a vast urban development project of 150 hectares around Bordeaux called Euratlantique, which will encompass our Wholesale Market (in an initial area of 50 hectares). It will align perfectly with the project in architectural and functional terms, while promising for our part a great permeability between the Market and the environment, so that it opens on the city and in the city. By its function, the Wholesale Market sets the pace for everyday living and its place is in the city, in an open, acknowledged place. It must be integrated into the city and participate in urban life.”
Environmental safety and sustainable development
The economic development of regions must combine performance and respect for the environment. To that end, the Wholesale Markets have organized themselves with a view to reasoned, sustainable development via the following points:
- centralizing regional productions to increase local consumption of regional products;
- concentrating product flows from the production areas up to the consumption centres with the goal of reducing road traffic and CO2 emissions;
- pooling deliveries in the city;
- defending a local, independent and diversified retail trade;
- setting up the appropriate waste collection and recycling systems
By reducing the number of intermediaries, transactions and transport time, Wholesale Markets participate in protecting the environment.
By concentrating operators’ waste through innovative systems of selective waste sorting and recycling, they treated 100 000 tons of waste in 2010. According to the applicable European legislation, this waste was recycled, reused or incinerated (75% recovery).
At Rungis, sustainable development also means an ultramodern rail terminal with the capacity to handle 400 000 tons of fruit and vegetables; 95% of heating requirements covered by on site waste incineration; access to fruit and vegetables for the poor thanks to the fourteen employees of the social groceries who collect unsold goods from the wholesalers every day and distribute them to the main food aid networks.
Lastly, let’s not forget that the Wholesale Markets of France are considerable centres of business and development. They account for over 26 000 permanents jobs on all the sites and they continue to represent a real social ladder for many employees.
The Rouen Wholesale Market (9th largest in France) has adopted an important strategic plan to modernize and increase business that fully integrates sustainable development and environmental protection. “For the last ten years, we have been modernizing our Market, to expand business and product lines, and to develop services,” explains Dominique Haug, director of the Rouen market, “while aiming for sustainable development and environmental protection. Among others, our efforts include:
-renovating and upgrading the Seafood pavilion to meet standards, using ecological, safe materials,
- insulating the fruit and vegetable pavilions and the administrative tower,
- developing local market garden productions and an organic sector,
- the development and diversification of the flower market,
- establishing a carbon footprint (using less polluting lorries, non-road diesel for pallet trucks, washing station with hydrocarbon recycling, plan to pool haulage means and deliveries by electric vehicles, etc.),
- waste collection, treatment and recycling,
- a partnership with food banks (collecting unsold fruit and vegetables for the poor),
- greening the site and making a rainwater and runoff reservoir. (Source: Les Marchés de Gros de France)
Key figures of the Wholesale Markets (2010)
The 19 Wholesale Markets
- 560 hectares
- 1.8 million m² built
- 2 280 opérateurs
- 12 billion euros turnover
- 26 000 permanent jobs
- 4 150 producers trading
- 62 500 buyers
- 55 million euros invested en 2010
- 50 000 véhicles/day
Rungis Marché International
- 232 hectares
- 959 000 m² occupied
- 1 200 opérators
- 7.7 billion euros turnover
- 11 700 permanent jobs
- 170 producers trading
- 25 000 buyers
- 40 million euros invested in 2010
- 26 000 véhicles/day
FFMIN becomes the Fédération des Marchés de Gros de France
Dating from the 1960s, the Fédération Française des Marchés d’Intérêt National (FFMIN) symbolized the network of public wholesale markets (MIN in French). However, there have been many changes and a diversification occurred in the last ten years. The new name Fédération des Marchés de Gros de France (federation of wholesale markets of France) is primarily about asserting the place of the nineteen wholesale markets in food sectors and in supplying towns, explaining and demonstrating their economic and social role, stressing their importance in regional development and maintaining an independent local retail trade, and quantifying their local, regional and national economic weight. Lastly, it is about uniting the nineteen Wholesale Markets under one umbrella brand in order to communicate a unifying image to the various bodies and parties concerned.
Francis Duriez
Sources : Marchés de Gros Crédit photos :
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