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Market Monitoring Frozen Potato Products: Insights August 2021
Mathieu Geuskens published on November 19, 2021
In this monthly Frozen Potato Products update, our analysts will share valuable insights about the Frozen Potato Products industry. This month, global trade volumes were up 2.1% YTD compared to 2019, prices remained down 4.7% YTD.
Market Analysis of Frozen Potato Products
For the A-INSIGHTS MarketMonitor, 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.
Trade volumes remain above pre-COVID levels in August
For the third month in a row, global frozen potato trade volumes were above the pre-COVID level of 2019. At 717 thousand tonnes, August trade volumes were up 9.0% compared to August 2019. The recovery that has been visible since June drives a year-to-date increase in trade volumes of 1.8%, but prices have remained relatively stable compared to 2020. With an average price of €0.82 per kg, trade prices are 4.7% lower than in 2019.
Figure 1. Global frozen potato trade volume in th. tonnes and price in €/kg, YTD until August
Increased demand for Belgian exports from South America
The largest exporter, Belgium, manages to increase export volumes by 17.7 thousand tonnes (6.9%), driven in part by increased imports from Brasil (+4.7 th. tonnes) and Chile (+3.9 th. tonnes). With trade prices of €0.50 and €0.59 per kg respectively, exports to these South American countries are priced well below the average Belgian export price of €0.66 per kg and drive part of the €0.06 decline of the average Belgian export price in August 2021. Although Dutch exports increase by 1.8%, the effect is less pronounced than the Belgian export increase. Canada continues to benefit from increased imports by the U.S., managing to increase exports to the U.S. by 22.3%.
Figure 2. Top 10 exporters, volume in th. tonnes and price in €/kg, August 2021 compared to August 2019
An interesting development is visible in the sharp increase in exports from India: the country is exporting additional volumes to Thailand (+1.7 th. tonnes) and the Philippines (+1.7 th.tonnes). This increased export from India goes at the cost of exports from more traditional export countries such as the Netherlands, the U.S., and Belgium.
High import level United States continues in August
U.S. imports continue to lie well above pre-COVID levels, with August imports up 24.9 thousand tonnes compared to August 2019 (+35.5%). In addition to the volume increase, U.S. imports are the only major import stream to see prices increase (+€0.05/kg). Market recovery is visible in almost all major import markets, with Southern European countries France (-0.6%) and Spain (-2.2%) as major exceptions. Increased imports by Brazil are largely supplied by low-priced product from Belgium (+4.7 th. tonnes at €0.50/kg), but main exporter Argentina also manages to increase its export volume to Brazil.
Figure 3. Top 10 importers, volume in th. tonnes and price in €/kg, August 2021 compared to August 2019
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