Despite good demand for frozen chips and a difficult start to the 2022 harvest year, producers of chips and other potato products have been able to build up their stocks considerably. The amount of product even reached a record. The reason for this must be sought in sales.
It is remarkable. On the reference date 31 July, French fries producers had a record amount of chips in storage that has not been reached since 2001. This is evident from the figures Cold Storage USDA Agriculture Department report. This concerns 446.000 tons of frozen chips, which is 11% more than was stored a year earlier. The stock of other frozen potato products amounted to 110.000 tons. That is even a quarter more than last year.
Much less sales
In the month of July, the American potato industry sold 5.624 tons of product. A year earlier, in July this was still 15.330 tons. The maxim that is followed is that consumption must be in stock for 30 days. The industry surpassed this level at the end of July, although it is still below the multi-year average.
The numbers are remarkable to say the least. In the US, there has been good demand for potato products throughout the season, and exports are also going well. Due to a disappointing start to the potato harvest in the Pacific Northwest region (PNW), processors have had to be careful with potatoes. Insiders believe that processors have pushed their prices up to the point that this has slowed down final product sales, increasing the inventory buffer.
Potato yield is disappointing
Potato processors in the US have started the 2022 harvest about ten days to two weeks later and have had to sap. The harvest is now going well, but the yields are disappointing. Cold this spring and heat in the summer ensure that the potatoes do not deliver the desired kilos. It is estimated that the main harvest is also affected by this. This is especially true for potato state Idaho. Growers report that the main harvest is still fairly fresh, but rain is needed. The summer has been record warm and dry, the question is whether that precipitation will come.
Lower end product sales by processors in the US are in line with previous reports. Recent figures are still missing, but until May the US has 11% less potato products exported. European processors – mainly from Belgium and the Netherlands – are not only selling more and more product in the country itself, they are also taking over export markets that have traditionally been in American hands. This concerns Asian countries and destinations in Central and South America.
sharp prices
Due to a smaller harvest in the US, the country has been able to cut fewer French fries, but the price plays a major role. Belgium and the Netherlands are very competitive on the quayside worldwide, and the Americans cannot compete with that.