Avril and its subsidiary Saipol forced to reduce their production in 2017

Avril and its subsidiary Saipol forced to reduce their production in 2017

A difficult but sensible decision if we are to safeguard the French oilseed processing sector.

For more than 30 years, the Avril Group and Saipol have been involved in constructing and consolidating a high-performance and sustainable industrial sector for oilseeds and vegetable proteins. The development of Diester® during the 1990s and the current communication campaign in favor of this biodiesel Made in France are some illustrations of the desire to develop and secure profitable markets for French farmers.

Fully in line with its commitment to the sustainability of this sector, and faced with competition exacerbated by unfavorable market conditions, Avril today announces that in 2017 it will be forced to reduce the volume of grain processed by its industrial facilities. This decision is designed to safeguard the competitiveness of these units which serve French agricultural producers, and will take the form of a 25% reduction in the volume of grain crushed this year at the Saipol plant in Mériot (Aube, France), without there being any impact on jobs on the site.

In addition to this exceptional measure, and so as to avoid an even greater reduction in processing, Avril will be offering its partners a contractual adaptation of its grain purchasing conditions. These new arrangements should enable Saipol to ensure the more equitable payment of rapeseed grain by standardizing its value throughout the quality range, whatever its oil content.

Effective as from 1st July 2017, and covering the 2017-2018 season, this contractual adaptation will result in paying suppliers a bonus that reflects current market conditions for oil contents higher than 40%. During subsequent seasons, the bonus will be readjusted to take account of changes to the grain/oil/meals markets.

According to Yves DELAINE, Deputy CEO of the Avril Group and Chairman of Saipol: "Reducing our production is a difficult but sensible decision. On behalf of the Avril Group, I would ask all actors in the sector, producers and collection agencies, to understand that this decision is being taken so that we can guarantee the long-term future and performance of the rapeseed sector in France”.