Price above pride at Chinese fries buyer

If we look at global trade figures for HS code 200410, which includes frozen potato products, it is clear how extensive the damage has been suffered by the Netherlands and Belgium. Recent export figures to China have almost halved compared to 1 year ago. The price is 20% to 30% higher, causing Chinese buyers to switch to cheaper products from the United States.

Less demand
In total, the country purchases far fewer frozen potato products. In July, 50% less was imported than last year. However, this figure has improved in recent months. Looking at a period of 1 year, exports have only decreased by 10%.

The average sales price for 1 tonne of fries in July amounts to €1.000 per tonne. The product from the Netherlands and Belgium is still below this level: €975 and €900 per tonne respectively. The United States records a price that is slightly above average, but this month saw by far the most decline. The country accounts for almost 75% of total exports. It has the advantage of a low dollar rate (relative to the euro). The Chinese currency renminbi has also fallen in value.

Newcomers from Europe
When we look at the figures for the month of July, a number of notable countries can be seen. New Zealand saw the largest percentage growth, followed by Germany. However, these are very small volumes. In Turkey it is different. The purchase from that country doubled and in terms of volume it ended up in 2nd place. Over a period of 12 months, the country ranked number 3, above the Netherlands.

The United States has held up well during the ongoing trade war. The volume of fries exported has remained virtually the same. This has only recently started to move. However, the American sources say that fries from the country have been taxed at an additional rate of 1% since September 10. Other sources speak of 5%. To date, these tariffs have had little effect on the demand for fries in China.