Every month, we share the latest insights into the Frozen Potato Products industry. What’s new this month? Trade data shows that global trade volume was up 0.9% in August 2024 compared to 2023, and prices were up 2.9%.
Global Trade Volumes Show Growth in August 2024
In August 2024, global trade in frozen potato products showed modest growth. Import volumes increased by 0.9% month-over-month, reaching 779.5 thousand tonnes for the month and a cumulative total of 9,381.5 thousand tonnes over the past 12 months (+0.2% year-over-year).
Exporter Highlights
- Netherlands experienced a notable decline in August 2024 compared to the same month last year. Export volumes dropped by 16.7% (-29.2 thousand tonnes), marking the steepest reduction among major exporters.
- France achieved significant growth, increasing export volumes by 49.0% (+19.9 thousand tonnes) over the same period.
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Import Prices Show Signs of Stabilization
Import prices for frozen potato products have demonstrated steady growth, yet they also indicate stabilization over recent periods. Prices rose by 2.9% compared to the previous month, reaching €1.34/kg. Over a three-month cumulative period, prices increased by 3.0%, while the 12-month comparison shows a more significant rise of 5.9%, from €1.26/kg to €1.33/kg.
The relatively small monthly and quarterly increases suggest that while prices are higher year-over-year, the upward trend is slowing.
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European Exports Outside Europe See Significant Declines
Over the 12 months ending in August 2024, European exports of frozen potato products remained relatively stable at 4,379 thousand tonnes, marking a slight decline of 0.7% compared to the same period ending in August 2023. When excluding intra-European trade, however, a significant downturn of 5.6% was recorded, with volumes falling from 2029.8 thousand tonnes to 1915.7 thousand tonnes. This stark drop is primarily attributed to:
- European exports to Australia: Exports show a steep decline of 28.3 thousand tonnes (-21.6%), reaching 102.4 thousand tonnes
- European exports to Malaysia: Exports declined by 11.9 thousand tonnes (-24.4%), reaching 36.8 thousand tonnes
Despite this, Latin American markets have shown robust growth, particularly in Brazil and Chile.
- European exports to Brazil: Exports surged from 132.5 to 153.3 thousand tonnes, an increase of 20.8 thousand tonnes (+15.6%).
- European exports to Chile: Exports increased from 107.2 to 117.4 thousand tonnes (+9.5%).
Decline in Pre-Fried Potato Production in the Netherlands
Cumulative production of pre-fried potato products in the Netherlands has decreased across all measured periods, with a 6.2% drop in October compared to the same period last year. Over the three-month period (August-October), production declined by 5.2%, while the 12-month total (November-October) saw a 3.9% reduction, reaching 1,730 thousand tonnes. Presumably, this explains part of the decline in European exports outside the region.
The reduced production in the Netherlands can be indicative of two dynamics: a pressured raw supply or slower than expected demand development that impacted both the stock of old crop production still available to distribute and the current production requirement
Market monitoring of frozen potato products
Market monitoring helps food companies to objectively evaluate their current position within the market and the development of that position. It also helps to spot new growth opportunities and whether the market is saturated.
For the A-INSIGHTS Market Monitor, we analyze the global trade in frozen potato products on a monthly basis. Derived from local customs agencies and statistics offices, the data gives us insight into monthly trade volumes and prices for all major importers and exporters. Combined with our sector expertise, we can provide you with an up-to-date view of the developments in the global frozen potato market.
Curious how A-INSIGHTS can help you to incorporate objective insights into your decision-making processes and how our Market Monitor will empower your perspective? Schedule a call.
