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Inside Potatoes

French fries consumption back to pre-corona level

27 August 2021 - Niels van der Boom

About a year and a half after the worldwide outbreak of the corona virus, the export and consumption of French fries worldwide has returned to pre-crisis levels. This is apparent from export figures from this spring and the beginning of the summer. However, some remarkable shifts are visible. You can read what they are in this analysis about the European and global chips market.

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Despite an almost complete closure of the catering industry during the corona pandemic, chip exports and consumption have held up well. Now that restaurants have fully reopened in many countries, exports can also make up those last few percent. In June of this year, global exports were more than 1% higher than in the same period a year earlier. The difference with 2 years earlier is only 2%, while it was a record at the time.

The big 4
It is visible that the big 4: Belgium, the Netherlands, the United States and Canada play a (slightly) smaller role in the export of fries. Volumes have clearly shifted during the corona crisis. These are relatively small percentages. More than 80% of all frozen fries worldwide are exported by these 4 countries. In percentage terms, China in particular has gained a lot in the last year and a half. At the same time, the country is also importing more fries.

In the 12 months up to and including May, both Belgium and the Netherlands saw their volumes decline. In Belgium that is a small percent. The Netherlands has 6,5% less exports. Canada in particular sees a plus in exports. This is 12,5% ​​higher over 12 months. That is somewhat special because the country actually had a small harvest. At the same time, it has been able to export a lot to neighboring country the US. We find this country in 4th place, with a plus of 1,5%.

35% more consumption
This 12-month period accounted for frozen chip exports of 7,8 million tonnes. This is more than 1% more than in the same period during 2019-20. Comparing this with the same months in 2018-19, this volume is only 2% lower, while it was a record. An upward trend in the export (and therefore consumption) of fries continues to be visible over a period of 10 years. That growth in volume amounts to 35%.

The most notable grower in the export list is China. The volume of fries exported has more than doubled in 12 months. This concerns more than 45.000 tons, a small volume on a global scale. Belgium, number 1, sells 2,65 million tons! Major buyers of Chinese fries are Hong Kong, Thailand and the Philippines. It must be said that sales have decreased in recent months. Partly due to pressure from the coronavirus, which sometimes flares up and causes disruption in consumption.

Chinese imports
The import of fries is also growing. In July, imports were one fifth higher than in the same month last year. These fries come almost entirely from the US and Argentina. This is partly due to the fact that the Chinese no longer have much of their own stock. What helps is that the price of fries is considerably lower than a year earlier. The price of Belgian and Dutch fries has actually increased by 10%.

Looking at the European figures for June (the most recent), recovery is visible compared to earlier this year. This is mainly due to price drops that make fries more interesting. The total export volume for the EU-27 is no less than 60% higher than in June last year. This makes the volume of 175.000 tons of fries a quarter higher than before the corona pandemic. Over a period of 12 months, the exported volume is 14% above the previous period.

The catering industry drives chip consumption
The EU has a stable customer in the Middle East with Saudi Arabia and the United Arab Emirates. In June, the United Kingdom took over as SA's largest customer. The imported volume is one and a half times higher than a year earlier. Due to the recovery of the British catering industry, there is clearly more demand for chips. South America is once again a growth market for the EU and this also applies to Africa. It is clearly visible that the European catering industry has also reopened. Mutual exports in the EU increased by 85% in June.

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