Nov 20, 2009World Demand for Frozen Potato Products Stalls in 2008/09
Over the past decade, world demand for frozen potato products (comprised mostly of frozen fries) has trended upward, expanding over 50 percent. However, the global economic crisis has stalled world demand, according to USDA’s Foreign Agricultural Service. In marketing year (July-June) 2008/09, world exports remained about the same as the previous year at 2.5 million tons. The United States has gained shares from Canada, the world’s largest exporter.
U.S. Exports Surged Over Past Few Years
U.S. exports grew by 50 percent over the past five years to about 775,000 tons due mainly to strong demand by the fast food industries in China and Japan and a weaker dollar, which made U.S. products more competitive. In 2008/09, despite the global economic problems, U.S. exports to the world rose almost 5 percent due mainly to small growth markets, particularly Hong Kong and Australia.
Canada’s Exports Down on Weak U.S. Demand
Canada’s exports were relatively unchanged at about 970,000 tons over the past few years as a result of flat U.S. demand. Canada supplies more than 80 percent of U.S. imports. Canadian exports are forecast to shrink to about 950,000 tons in 2009/10 due to anticipated lower demand from the United States and the strengthening Canadian dollar.
EU’s Exports Slid 10 Percent Last Year
EU’s exports of frozen potato products slipped 10 percent to 440,000 tons on weak demand from Saudi Arabia, Russia and Brazil, its top markets, which buy over half of EU exports.
Japan’s Imports Expand Slightly
Japan is the world’s second largest import market. Over 90 percent of Japanese consumption is supplied by imports, which have surged 20 percent over the past five years. Despite the world economic crisis, Japan’s purchases are expected to expand another 5 percent to 340,000 tons in 2009/10, primarily from the United States.
China Is Key Growth Market
Although small, imports account for half of domestic consumption, with most coming from the United States (40,000 in 2008/09). Given that China’s economy continues to strengthen, this nation remains a key growth market.
