The German potato processing industry as a sector is growing, unlike in the Benelux, but barely. This is evident from figures from the statistics service Destatis. However, more potatoes are being processed into chips, which is at the expense of the starch potato industry. They actually used fewer potatoes in the 2021-2022 season.
Potato processors in Germany processed a total of 3,78 million tons of potatoes during the last season (which runs from August to August). Of this, 1,14 million tons of end product were produced. With 494.000 tons, frozen fries are the largest product group in the German industry. Refrigerated potato products are in second place with 238.000 tons, closely followed by potato flour and granules with 234.000 tons.
Stable sector
What is striking is that only 7.000 tons more potatoes were processed compared to the previous season, while the industry clearly performed better after corona threw less or no spanner in the way of sales. The German potato industry is a stable sector, in contrast to that in Belgium in particular, but also in the Netherlands and France. However, some growth is visible. Compared to five years ago, the processed volume of potatoes has increased by 120.000 tons.
A chip volume of almost 500.000 tons is 6,2% above the result of the previous season. That's the best result ever. After two poor seasons in 17-18 and 19-20, chip production is clearly on the rise, corona or not. This makes this sector the only one to show significant growth. This is mainly at the expense of the starch and flake industry. Roughly half of all German fries cross national borders. At the same time, half of the entire French fries requirement is again imported to meet the needs of the Germans, who like fries. Belgium and the Netherlands supply almost all the product for this.
Challenges for drying industry
The drying industry that produces flour, flakes, purees and more is not having an easy time. The amount of end product shrank by 3%. In addition to strong competition from fries, there are problems with potato cultivation every season due to drought. That certainly plays a major role this season. Another challenge is the energy requirement and the costs involved at the moment. Even more than fries, the drying industry is highly energy intensive. During the corona pandemic, the sector has experienced a revival because there was more sales for 'convenience' products that contain potato flour and granules.
One segment that has benefited from the post-corona period is the chilled potato products segment. These are mainly sold in restaurants, company canteens and other catering establishments. Its volume has increased slightly. The remaining potato salad and chip production segments saw a slight decrease in volume last season.