Inside: Potato Market

China has a surprising new chip supplier

1 March 2017 - Redactie Boerenbusiness

Potato processors see China as the country of unlimited possibilities when it comes to the export of French fries and other frozen potato products. The US and Canada are purveyors to the Chinese and the Netherlands and Belgium are also trying to get their share. A new competitor comes from an unexpected quarter.

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If we study the Chinese import figures for fries and other frozen potato products, it quickly becomes clear where the focus lies. The United States is by far the largest supplier, with almost 100.000 tons of product exported between February 2016 and January 2017. However, that is a decrease of 5 percent. Canada comes in second place with almost 18.000 tons.

5.000

ton

Turkey exported to China in 2015-2016

Belgium comes in third place with 14.000 tons of delivered product. The Netherlands is only slightly below this, with 2.750 tons of product in one year. Just like the US and Canada, the Netherlands and Belgium also had to make concessions in terms of export volume. 34,5 percent less was exported compared to the same period in 2015-2016. For Belgium this was 21 percent less. The two North American countries lose light by 5 and 6 percent.

The unexpected grower in the list is Turkey. With a total volume of over 5.000 tonnes over one year, it ranks fourth, below Belgium. That's a first. In the previous two export seasons, virtually no product was exported. In January this year, the exported volume is almost equal to Belgium and above Canada. The percentage increase is enormous. Besides Turkey, New Zealand is the only other country that shows a plus in exports.

For the first time in eight years, the US is exporting seed potatoes to China

Turkish fries are more competitively priced than those from the US. With an average of 180 CnY (Yuan Renminbi) per tonne, the price in January was 12,5 percent below that of the Americans. However, compared to Dutch fries, the Turkish product is 30 percent more expensive. The euro is currently in a better position than the US dollar against the Yuan Renminbi.


In addition to potatoes, the US is also allowed to export seed potatoes to China again this year. The inspection and quarantine department in Jining City has given permission for this. Eight years ago, an attempt was made to export seed potatoes from the US. That went wrong due to problems with logistics and quality. This concerns high-quality starting material that is intended for further propagation and not for consumer cultivation. In January 2017, China itself exported 156 tons of seed potatoes to Saudi Arabia. 90 percent of the country's total export volume.

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