News Potatoes
EU sells fewer fries, but at record prices
Worldwide, the sales of fries and other frozen potato products have increased. Belgium, the Netherlands, and Germany are receiving less of this cake. A positive note, however, is that the price per ton of fries has increased.
The export figures within the harmonized trade system are unfortunately lagging behind. July is the most recent month for which figures are available. In total, the EU-27 and the UK exported 143,000 tons of fries in that month. That is 5.6% more than the same month in 2023. The United Kingdom was a major buyer of fries from the European Union. The purchased volume increased by 16%. North America took 40% more fries, despite having a large harvest itself.
Fewer tons in total
Over a twelve-month period, exports now amount to 2.87 million tons. That is 3.4% less than the same period before and almost equal to 2021/22. Europe's biggest customers are buying fewer fries month by month. The United Kingdom is an exception. Because more small destinations bought the product, the total figure is higher. The export figures clearly show that the ample availability of potatoes in the United States and Canada is creating a different picture. Both in the North American market and the export market. South American countries have significantly increased their purchases of fries.
Looking at individual countries, the United Kingdom remains by far the largest buyer of European fries, with a stable volume over twelve months. Saudi Arabia, the second-largest, shows a slight decrease of 3%. In July, it purchased 14% less product. The US, surprisingly, bought 34% more fries. This amounted to 15,000 tons. Over twelve months, this country is still slightly in the positive. The top twenty destinations collectively bought 8% more fries from European countries in July.
More expensive fries
At the end of the processing season, fry producers and exporters have managed to keep their prices high. The price to the UK even rose to €1,514 per ton. That is 7% more than the €1,416 paid a year earlier. Over a whole year, the average price level is nearly a fifth higher. North America and the Middle East also paid more, while South & Central America, Asia, and Africa paid less.
Of the EU-5 countries, only France and Germany have reported export figures for July. France exported over 59,120 tons, which is 12% more than the previous month. Germany saw a slight decrease in exports compared to June, to 22,300 tons. In June, Belgium delivered almost 9% fewer fries and the Netherlands 13% fewer fries. France also performed well in that month.
France is growing
France remains the exception within the EU-5. The country shows good export figures and is also making significant progress in potato cultivation and processing. The figures clearly show that it is an extension of the Belgian processing industry in particular. In July, this country was the largest 'customer' with over 10,000 tons of exported product. Most likely, the majority of this volume reaches the world market through Belgian ports. The same applies to the 7,000 tons exported to the Netherlands. Spain and Italy are the second and third largest destinations for France. At the same time, France also imports the most fries, although the volume decreased in June. Among non-EU destinations, Saudi Arabia is the largest buyer, followed by the US.
Just like the total EU figures, the sales figures of the EU-5 show a slight increase. While the Netherlands may have lost significantly in June, the selling price increased by almost 7% to €1,381 per ton. Only Germany is slightly higher at €1,402. Poland is the real price buyer, followed by Belgium and France.
Fries never so expensive before
Although the top of the fry market may be, especially in terms of volume, processors have kept the trade going at the beginning of summer. It is frustrating that not all export figures are provided in a timely manner, resulting in a lack of current information. Especially from the Netherlands and Belgium. Factories have managed to keep prices per ton stable or even slightly increase them. With an average selling price of €1,329 per ton, never before has so much been paid for a ton of frozen fries. A year ago, the price was 8% lower: €1,229 per ton.
Niels van der Boom
© DCA Market Intelligence. Op deze marktinformatie berust auteursrecht. Het is niet toegestaan de inhoud te vermenigvuldigen, distribueren, verspreiden of tegen vergoeding beschikbaar te stellen aan derden, in welke vorm dan ook, zonder de uitdrukkelijke, schriftelijke, toestemming van DCA Market Intelligence.
