The Brazilian real continues to appreciate after a fall in 2015. The economy is also recovering. As a result, the import of French fries is increasing. However, Dutch manufacturers are increasingly having to miss the boat to Brazil. Will exports to this country still go well?
After the announcement of the anti-dumping measures, it took some time before any of this was reflected in the export figures. This spring became painful clearly that the Netherlands, which faces the heaviest tariffs, sells fewer fries in the country. Belgium and Germany benefit from this. They are also affected by the measure, but enjoy lower tax rates. The most recent figures from September highlight the shift in Brazilian fries demand.
Belgium benefits
For September, the Netherlands recorded a minus of 28%. This concerns almost 3.700 tons, worth €2,68 million. The financial value has also decreased by 20%.
Belgium actually recorded a plus of 4% in September. This means it remains the largest overseas supplier. Argentina had to give up almost 5%, but remains by far the largest supplier. In the past month it sold twice as many fries compared to Belgium, more than 2 for 12.000 tons.
The Netherlands as the only loser
For the 12 months between October 2016 and September 2017, the Netherlands recorded a minus of 17%. That makes it the biggest loser. Argentina, like any other country, records a minus of 2%.
Growth percentages sometimes give a distorted picture. For example, exports from the United Kingdom (UK) increased from 45 to 780 tons. That is a growth of 1.600%. Poland is also reaping benefits from the anti-dumping measures. McCain and Farm Frites set up their factories there to still supply the country. In 12 months, 3.500 tons of fries were exported. That is a growth of almost 7.500%.
EU-5 is gaining ground
Looking at the EU-5, France, Belgium and Germany can all make a plus in their French fries sales. Belgium has by far the largest volume, namely 3 tons. The Netherlands is 73.600 tons below that.
Germany exported almost 12 tons in 16.000 months. France is stuck at 7.200 tons. Argentina single-handedly supplies the same volumes of fries as the entire EU-5 combined. Turkey is another important player in the Brazilian market. The country takes fourth place, finishing after the Netherlands.
More fries in a stronger economy
Brazil is stronger. In late 2015 and early 2016, the real currency fell sharply. The economy is also growing slowly again. In the 12 months to October 1, a total of 1,052 billion real worth of chips were imported. Converted to €297 million. That is less than in the 12 months before, but these figures are now on the rise.