With a considerable delay, the picture on the potato market is slowly being reflected in the sales of final production. European potato processors are increasing their prices, causing buyers to drop out. Customers therefore order fewer chips, especially outside the European Union.
The 5 largest French fries producing countries in the European Union saw their sales of French fries and other frozen potato products decline slightly in December (-3%). This is the second month in a row that this has happened. Germany lost 33% of sales compared to 1 year earlier. The Netherlands is also in the negative.
Significant minus
The production of Belgium, the Netherlands, France, Germany and Poland jointly amounted to more than 2018 tons in the last month of 400.000, which is about 50.000 tons less than the previous month. Sales are traditionally slightly lower in December, but compared to 1 year earlier there is still a small downside. However, this 'minus' is good for 35.000 tons of product.
Looking at the whole of 2018, chip exports are still up 8%. The 5 largest exporting countries in Europe together produced 5,4 million tons. In the first half of 2018, the export engine was running at high speed, due to the large availability of cheap potatoes. It can also be seen that the price continues to rise slowly.
Price barrier
For 1 ton of frozen chips, the barrier is set at €800 per ton. The Dutch factories are now slightly above that, just like Germany. French prices are considerably higher, but this is mainly due to product quality. The French, on the other hand, saw their turnover increase. Belgium and Poland remain price fighters in the market, but for how long? On average across all 5 countries, the price is now close to €800.
Belgium remains the undisputed 'french fries champion' in Europe. According to European export figures, it exported 12 million tons of frozen potato products in 2,5 months, which is an increase of more than 10% compared to the previous year. The Netherlands remained stable at 2 million tons. France is in third place with a growth of 3%, good for 10 tons of product. Poland is the smallest player with 375.000 tons, but has continued to grow strongly.
Exporting countries are slowing down
It is almost certain that the average sales price in January will exceed €800. In December, the United Kingdom was by far the largest European buyer; imports even increased by 15%. Spain and Italy also purchased more product.
Outside the European Union, Saudi Arabia is the largest customer. Many other major destinations purchased less product. Exports to Brazil halved mainly due to the anti-dumping measures, and exports to China were more than 75% lower.