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Market Monitoring Frozen Potato Products: Insights May 2022
Mathieu Geuskens published on August 17, 2022
In this monthly Frozen Potato Products update, our analysts will share valuable insights about the Frozen Potato Products industry. This month: Global trade volume up 12.7% YTD compared to 2021, prices up 11.0% YTD.
Market monitoring of frozen potato products
Market monitoring helps agri food companies to objectively evaluate their current position within the market and the development of that position. Furthermore, it helps to spot new growth opportunities and whether the market is saturated.
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.
18.1% price increase in May has little impact on upward trend in trading volumes
At 740 thousand tonnes, the trading volume in May was up 11.3% compared to May 2022. Prices continue to soar in light of cost inflation and sustained logistical challenges: with an average trading price of €0.98/kg, prices in May were up 18.1% compared to last year. Year-to-date, the price increase is 11.0% as lower trading prices in the first months of the year curb the price rise. Due to the record trading volume in March, the year-to-date volume is up 12.7% year-over-year.
Figure 1. Global frozen potato trade volume in th. tonnes and price in €/kg, YTD until May
Additional volume is largely supplied by Western Europe, with supply shortages pressuring U.S. export capabilities
Most of the additional trading volume in May is supplied by producers in Western Europe, who benefit from lower price levels and sustained raw potato supply. Despite price increases of 32.3% and 23.5% respectively, Belgium and the Netherlands see export volumes increase by 26.7% and 17.5% respectively in May.
Despite these significant price hikes, product from Belgium remains 18% cheaper on average than product from Canada, providing a competitive edge. The U.S. still sees its export capabilities constrained by both the reduced raw potato supply in key growing and processing regions, above-average price levels, and, to a lesser extent, sustained logistical challenges such as container availability and shipping costs. This leads to a 9.0% year-over-year export volume decline, although the 11.5% price increase is below the market average.
Figure 2. Top 5 exporters, volume in th. tonnes and price in €/kg, May 2022 compared to May 2021
Further increase of U.S. import demand in May, but increase slows in June
The constrained supply in the U.S. is highlighted by the increased import needed to supply local demand, with the country import record volumes since March. May volume is up 17.2% compared to 2021, with prices 12.8% higher. As U.S. trade data is available earlier than that of European countries, we can see that import demand for of U.S softens in June, with the monthly volume down to 115 thousand tonnes, which is still 6.8% higher than in June 2021.
Although the absolute volume increase in the U.S. is highest, higher relative increases are found in most other top importers, with France and Germany import volumes up 20.6% and 31.9% respectively. The largest relative increase is found in Saudi Arabia (+51.0%), with the average import price of the country op €0.28/kg (+40.6%). Most of this volume is supplied by Belgium, which sees its exports to the country triple in May. However, imports by Saudi Arabia were lower in the first months of the year, due to which the year to date volume is up 2.9%.
Figure 3. Top 10 importers, volume in th. tonnes and price in €/kg, May 2022 compared to May 2021
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