Due to the corona crisis, the volume of processed potatoes has plummeted. The processing figure for March shows that Dutch manufacturers used considerably less potatoes than the previous month. At the same time, the use of potatoes from abroad increased.
A total of 290.900 tons of potatoes were processed in the Netherlands in March, compared to 331.700 tons. in February. That is a decrease of more than 12%, according to the most recent processing figures from trade organization Vavi. If we compare these figures with March 2019, there is also a contraction of approximately 12%. This is a direct result of the corona outbreak, which has forced the closure of catering establishments and hampered exports. Due to the drop in demand since mid-March, processing lines have partly come to a standstill.
March is normally one of the most important processing months, after October. Market analysts note that this year the March processing figure will be the lowest in 7 years. Of the 290.900 tons of potatoes, 130.900 tons were processed into pre-fried fries and 25.500 tons into other products, such as potato flakes. This means that the decline in the latter category is less significant, namely 6%.
More imports
What is striking about the low processing figure in March is that the volume of imported potatoes increased from 97.400 in February to 111.300 tons in March. This amounts to more than 38% of the total compared to 29,4% in February and 30% in the same month last year. This probably mainly concerns contract potatoes.
Now that the demand for potato products is low and cold stores are filling up quickly, it is likely that processing will shrink further in April. Analysts even expect that the processing figure will not exceed 250.000 tons. The Easter weekend that fell in this month also plays a role in this.