In contrast to Europe, American exports of French fries are surviving the crisis relatively well. This autumn, processors and exporters will see the volume exported grow again. Indirectly, this is also good news for the European potato sector.
The export of French fries and other frozen potato products in October this year was still 14% below the level of the same month in 2019. At 82.000 tons, this volume is above the level of 2018, the first time since the corona outbreak. At that time, almost 80.000 tons were exported.
Asian market
The reason for the green figures can be found in the destinations that the US supplies. For example, the countries in Southeast Asia are performing much better than Western countries. The corona virus plays a lesser role and therefore public life can take place as usual. It is therefore not surprising that exports to countries such as Japan, South Korea and Taiwan are higher. More was also exported to Mexico.
That kite does not apply to all Asian countries. On the other hand, considerably less was exported to Thailand and Vietnam. Volume declined 30 and 43% in October. The price per tonne of chips also fell, albeit marginally. There are also destinations that paid more per tonne. In total, the value of American French fries export fell by more than 15% compared to the previous season. A difference of €83 million. The big question now is whether the recovery will also be noticeable in the last 2 months.
More imported
Why is this news also positive for Europe? Simultaneously with a rising export line, we see the import line creep up. A lot of chips are mainly imported from Belgium and the Netherlands. In the US, the sector reacted sharply this spring, resulting in far fewer potatoes being planted. As a result, the harvest is also smaller. Couple that with a relatively good demand – given the situation – and an imbalance arises. Incidentally, a growing European French fries volume towards 'The States' has been noticeable for several years now.
In October, the country imported more than 96.000 tons of chips. An increase of 6% compared to October 2019. By far the largest volume comes from neighboring Canada. Not surprising, because many French fries producers have factories in both countries. Belgium and the Netherlands follow. Our country in particular imported more. A plus of 44%, which is due to the competitive price. A tonne of chips cost $764 per tonne in October, while that from Belgium is over $100 more. This means that the fries are still $150 cheaper than those from Canada.
More imports from the Netherlands
Over a period of 12 months, the export from the Netherlands is more than half higher than in the same period before. The Belgian export level is even three quarters higher. Germany also saw its export volume increase in October and over 2019-2020.
French fries exports are expected to recover further and imports can also grow. The potato sector in the country receives more government support and there is a demand market for chips in the country itself.