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 1.8% in May 2024 compared to 2023, and prices were up 4.0%.
Belgian Exports declined by 19.1% during May ’24 compared to ’23
In May 2024, global trade volume experienced a slight decline, dropping by 1.8% compared to the previous year, with the total reaching 789.6 thousand tonnes. This decrease was largely driven by a significant reduction in Belgian exports, which fell by 19.1%, or 52.1 thousand tonnes, bringing the total to 220.9 thousand tonnes.
Notable developments were:
Declining exports to France
- Exports to France decreased by 21.4 thousand tonnes, with only 21.6 thousand tonnes exported to France in May.
- This decline is presumably related to the new production capacity from Clarebout in Dunkirk.
Increase in Exports to the US
- Exports to the United States increased to 15.6 thousand tonnes, driven by shipments from Clarebout and Agristo.
Prices increased by 4.0% year-over-year, but compared to April 2024, import prices rose by just €0.01, or 0.7%, indicating price stabilization. Asian import prices declined to €1.38/kg, down from their late 2023 peak of €1.43/kg.
Latin America imports grow by 12.1% in H1 2024
In the first half of 2024, Latin America’s frozen potato imports experienced notable growth, with a 12.1% year-over-year increase in total volume. This surge was likely driven by the increasing QSR sector across South America. Unlike global trends, where McDonald’s saw a decline in restaurant traffic, Arcos Dorados, the master franchisee for McDonald’s in Latin America and the Caribbean, reported increases in sales.
Several import only markets saw significant year-over-year growth:
- Mexico: Imports rose by 8%, reaching 163.9 thousand tonnes, with the majority of supplies coming from the US.
- Panama: Imports surged by 30%, totaling 25.6 thousand tonnes.
- Costa Rica: Imports increased by 18%, reaching 21.0 thousand tonnes.
Europe remains the largest exporting region to Latin America, with average export prices at €1.16/kg. Argentine export prices average €1.43/kg, which is €0.27 higher than European prices. This price difference reflects a cost advantage for Latin American exporters, attributed to lower shipping costs and trade tariffs compared to European counterparts.
Brazil is not exporting into the region yet
Bem Brazil is preparing to open its third plant, scheduled to begin production in 2027, with plans to enhance its export activities. While Brazil has not yet made a significant impact on regional export volumes, there has been some progress. In the first half of 2024, Brazil exported 3.68 thousand tonnes to other Latin American countries, reflecting a y-o-y increase of 32.6% from 2.48 thousand tonnes. However, these exports still represent only 0.8% of the total imported volume in Latin America, excluding Brazil itself. The key question is whether Bem Brazil will be able to establish a strong regional presence similar to the trend seen in Asia. Currently, Brazil's exports are primarily driven by Bem Brazil, and the company has yet to achieve substantial export volumes.
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.
