In July of this year, the Dutch potato processing industry processed 25% less product than the previous month. This is the lowest figure in two years. This is a well-known seasonal pattern for factories, although the dip is slightly larger this time.
In July, Dutch factories collectively processed 276.700 tons of potatoes into fries and other potato products, according to figures from the Vavi industry association. That's 11.500 tons less than a year ago. Only in July 2023 was processing even lower. Processing interruptions due to holidays, maintenance, and the like usually don't contribute to high production. In July of this year, Dutch potato processing also processed a quarter less product than the previous month. That's the lowest figure in two years. This is a well-known seasonal pattern for factories, although the dip is slightly larger now; the market situation, particularly for frozen fries, undoubtedly has an impact on the situation.
Excellent return
A total of 125.600 tons of pre-fried fries and 25.100 tons of other products were produced. This brings the processing yield to 54,5%, 1,5 percentage points higher than the previous month and even the second highest figure this year so far. The last of the old potatoes and the first new ones apparently fried perfectly.
Factories imported 120.300 tons (43,5%) of the potato volume from other countries. A considerable volume, but this also includes, for example, the Bordeaux potatoes that traditionally arrive here at the start of the new season. Import levels have therefore fallen somewhat compared to previous months.
Pattern
The 25% lower processing figure isn't immediately cause for concern. As mentioned, this is a seasonal pattern that recurs annually. However, it's noticeable that the processed volume slowly declined at the end of last season, while it normally occurs more abruptly. How quickly the French fry lines resumed operation this month will be interesting to see. Last year, it took three months for the factories to reach full capacity.
Potatoes aren't the problem at the moment. Despite the persistent drought, the early crops, largely thanks to frequent irrigation, have yielded good quantities. The main harvest is also not doing badly in most areas, but is average to slightly above average. It's clear that Dutch processors are being affected by lower global demand for their products.
The actual magnitude of that impact remains a matter of guesswork. Factories are keeping their cards close to their chests. Insiders do indicate that there's particularly high price pressure on bulk varieties (Fontane segment) and standard fries, while fast-food varieties (Innovator segment) and those products are selling well.