The processing of potatoes into chips and other potato products increased in June. Dutch factories have processed significantly more product and averted a new record low.
During the month of June, a total of 274.300 tons of potatoes were processed by the potato industry. A large volume of 103.600 tons comes from abroad. This level is even slightly above that of May (38% of the total versus 37% in May), when many potatoes were already imported. Mainly from Belgium. This has averted a new record low. In June 2013 and 2011, fewer potatoes were processed than was the case this year.
Verschil
Last month's processing rate is 7,5% below last year's and 19% below the 5-year average. This difference is due to the fact that relatively few potatoes were processed in June 2019 and 2018, compared to the pace of previous years.
Of the total potato volume, 118.600 tons of pre-fried fries were made. We have not seen this level since March. 26.000 tons were processed into other potato products. Compared to a year earlier, the volume of fries produced is 12% lower.
Changeover to new season
It appears that July will also show a recovery. Traditionally, the processed volume decreases as factories gradually switch to the new harvest and carry out the necessary maintenance, causing lines to be shut down. This year this already happened in April and May for some processors and processors picked up the thread in June. There is also a considerable volume of old harvest to be processed, because contract potatoes have been stored for longer.
The 5-year average for the month of July is 272.240 tons of potatoes. The volume decreases by almost a fifth in this period compared to June. It will be interesting to see if that image is also rehearsed this season. Sales of fries have also been able to recover in recent weeks, market insiders indicate.
Rabobank recently published a message about the accrued French fries stock. It is difficult to estimate to what extent fries are directly exported and consumed, or whether a lot of them are still kept in stock. If the latter is the case, the consequences of the corona crisis will continue to unfold before the market. This may have consequences for the processing figures at a later time.