The volume of chips potatoes processed by German factories in the 2016/2017 financial year decreased slightly compared to the previous year. For potato growers, the fork is different in the handle. How come?
In the 2016/2017 financial year, German chip factories processed 3,62 million tons of potatoes. That was about 2015 million tons in 2016/3,64. However, potato growers, especially in the north of Germany, have not supplied less product to the factories.
More contracts were concluded with factories in the Netherlands and Belgium in 2016/2017. In addition, free potatoes were sold to the west in the autumn of 2016. This year, a number of large German companies have outsourced processing abroad.
Price of fries stable
Despite the fact that the free potato prices were considerably higher than average, the processors did not notice much of this. The vast majority of French fries potatoes are supplied under a fixed price contract.
The average selling price of fries was €520 per tonne. Slightly cheaper than the 10-year average, but better than in 2014/2015. Other frozen potato products were traded for an average of €1.180 per tonne. Slightly less than in the 12 months before.
Flour and granules to record
The highest price is paid for chips in the market. Factories sold their product on average for €3.290 per tonne. A price level that is slightly below the 5-year average. Due to a lack of raw materials, the sales prices of potato flour and granules reached record levels of €1.090 and €1.520 per tonne.
Less French fries consumption
German consumers ate fewer fries during the 2016/2017 financial year, with consumption estimated at around 345.000 tonnes. That is a slight decrease, but does not take into account a changing chip stock. More imports, lower inventories and hitches in production are partly responsible for lower output at factories. 436.000 tons of chips were made, compared to 444.000 tons in 2015/2016. Yet the sector continues to grow steadily.
Growth expected
For the 2017-2018 financial year, chip factories are expected to further expand their production to a level of 450.000 tons or more. This year, significant investments have been made in factories.
Between April and June, 90.000 tons of fries were produced, while 110.000 to 120.000 tons is normal. A large factory was shut down due to construction work. As a result, German French fries production experienced some hiccups.