Contrary to popular belief, after the Brexit referendum in June 2016, the United Kingdom's French fries imports have not been hit by the great uncertainty. Figures on the import and export of French fries show this.
After it became known that a small majority of the British people voted in favor of leaving the European Union, it was feared that this would put a dent in chip sales. A falling exchange rate of the pound makes the price of fries more expensive. That did happen, but it did not dampen the demand for potato products.
Price and volume both higher
UK imports of chips increased by 2016% between June 2017 and 4,4, to almost 600.000 tonnes. If we only look at the month of June, imports increased by 7,3%. The average price level of fries has increased by 13,2%, to €783 per tonne.
Belgian competition
The Netherlands remains the main supplier of fries to the British island. In 12 months, 344.000 tons of product were exported from our country. However, competition from Belgium is lurking. The volume sold has fallen by almost 5%, while sales in Belgium have increased by almost a quarter. The annual volume of our southern neighbors is 233.000 tons. Still 111.000 tons lower, but the country is catching up fast. Two seasons ago the difference was 2 tons.
Pricing
The reason for the switch from Dutch to Belgian fries is the pricing of the product. On average, fries from our country were paid €773 per tonne, while Belgian fries were traded for €692. The average price is €750.
Germany's share smaller
Ireland is in third place, with a volume of 64.000 tonnes in 12 months. Considerably less than what comes from the Benelux. Imports from France are stable, while those from Germany decreased by 30%. However, this does not concern significant volumes. This also applies to the two largest growers in percentage terms: Spain and Austria.
Exports are increasing
The weak pound also has an advantage. British fries are more attractive to buyers. However, the volume that is exported is not in proportion to what the country imports.
Up to and including June 2017, more than 40.000 tons of product were exported. This represents an increase of 16,4%. It is the highest level since 2008. In June, exports even doubled compared to the same month in 2016. On average, a tonne of British fries cost €1.223, a reduction of 10%. This is due to the price drop. The lion's share of fries are sold to Ireland. The Irish share is 30.000 tonnes.