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 down 3.9% in June 2024 compared to 2023, and prices were up 3.1%.
Price Levels are Expected to Remain Stable – European Exports are Facing Challenges
Import prices remained stable month-over-month at €1.34/kg.
- North American prices increased slightly by €0.01 (+1.3%) to €1.40/kg, matching the highest level in the past year.
- European prices saw a modest decrease of €0.01, bringing the price to €1.33/kg.
- Year-over-year, import prices rose by 3.1%, from €1.29/kg in June 2023.
According to the most recent Belgapom quotation (27-09-24), supply is currently balanced with demand, suggesting that European prices are expected to remain stable in the coming months.
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In June 2024, overall trade volumes dropped by 31.9 thousand tonnes (-3.9%) compared to the previous year, totaling 784.3 thousand tonnes. This decline was solely driven by a reduction in European exports:
- A decrease of 47.4 thousand tonnes (-8.4%), bringing European exports to 514.8 thousand tonnes in June 2024
Compared to May 2024, trade volumes also declined by 55.5 thousand tonnes (-6.6%)
- Both European and North American exports declined by 6.3%
- North American countries exported 196.4 thousand tonnes, but show recovery in July 2024
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The Middle Eastern market is growing, however, gradually shifting toward imports from lower-cost countries
Over the 12 months that ended in June 2024, imports in the region have increased by 1.2% reaching 657.3 thousand tonnes. There have been some notable shifts in countries exporting to the region in June 2024:
- Egypt has surpassed Belgium as the second-largest exporter, with 9.6 thousand tonnes compared to Belgium's 9.1 thousand tonnes.
- India has overtaken the US in exports, reaching 2.9 thousand tonnes versus the US’s 2.8 thousand tonnes.
This shift is also visible in the average import prices:
- Average import price decreased from €1.27/kg in June 2023 to €1.25/kg in June 2024
- Driven by increased imports from lower-cost countries
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Surprisingly, Belgium’s export prices are at €1.25/kg, 16.8% lower than those from the Netherlands. This is probably related to the presence of more "premium" brands like Lamb Weston, McCain, and Aviko exporting from the Netherlands, while "lower tier" exporters such as Clarebout, Agristo, and Lutosa export from Belgium.
Saudi Arabia’s imports decline (-31.5%), reflecting increased local production and QSR boycotts
In June 2024, Saudi Arabia's import volumes dropped significantly, with only 15.9 thousand tonnes imported, marking a 31.5% decline compared to the 23.2 thousand tonnes imported in June 2023. While the country continues to source most of its products from traditional exporters like the Netherlands, Belgium, and the US, there has been a noticeable shift toward lower-priced suppliers such as Egypt, India, and China.
The decline in imports may be partly attributed to the ongoing QSR chain boycotts in Saudi Arabia, as well as the growth in local production driven by Al Jouf's capacity expansions. As Al Jouf continues to scale up its production, this trend of reduced import dependence is likely to persist in the future.
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.
