BNP Paribas Wealth Management: Agrifrance publishes annual report on the rural economic situation
22.03.2016 | Group, Press release
Oak barrel staves: a market success story
This year’s report focuses on the stave wood and cooperage market, a sector positioned half-way between forestry and the world of wine.
Some key figures:
With 75% of global production of barrels in 2014, France is the number one player in this market
The USA and France are the world’s two leading countries for oak wood production
66% of all barrels manufactured in France in 2014 were exported, 22% to the USA, 8% to Australia and 7% to Italy
The price of oak has risen 30% since 2013 and can exceed €2,000/m3
Every year, Agrifrance, a specialist division of BNP Paribas Wealth Management, publishes a report on France’s rural economic situation, providing insights into rural property investment. This year’s report focuses especially on the stave wood and barrel making market, a sector positioned half-way between forestry and the world of wine.
“The wine market is doing very well, due in part to an excellent harvest in 2015. From an investment standpoint, rural land offers an appealing diversification opportunity that continues to attract buyers,” underlined Benoit Léchenault, Head of Agrifrance, adding: “French barrel making is following the development of the global wine trade and is an integral part of the wine value chain. Thanks to expansion overseas, California and Ohio are now the ‘promised land’ for French barrel makers.”
A key French industry dedicated to fine wines, which has a strong international reputation
As is the case for wine, the soil and climate to be found in some areas of France are highly suitable for producing wood for barrel staves. The ‘vintage’ oaks grown in France’s truly exceptional ‘forest terroirs’ provide top-quality timber.
With 75% of the worldwide 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 boasts a barrel-making industry with a long history of excellence.
With their success in exporting high-end products, France’s barrel makers are showing the way forward for the forestry sector. French barrel making is following the development of the global wine trade and is an integral part of the wine value chain. With its globally-recognised knowhow, France’s barrel-making industry creates high added value and generates a positive trade balance.
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Agrifrance is the specialist rural property division of BNP Paribas Wealth Management, offering clients seeking the right investment and wealth management solutions the benefit of over 40 years of experience in the viticulture, farming, forestry and prestigious homes markets. With its network of recognised professionals, Agrifrance is also able to provide complementary services such as valuations and management of rural properties.
BNP Paribas Wealth Management is the sixth largest Private Bank in the world, with a presence in some 30 countries. Over 6,600 Wealth Management professionals located across all major world financial centers provide private investors with a wide range of tailored solutions in order to manage their assets for optimal results. At the end of December 2015, BNP Paribas Wealth Management had €327 billion worth of assets under management.