Potato Review

50 POTATO REVIEW MARCH/APRIL 2023 INTERNATIONAL Frozen fries exports increase EXPORTS of frozen fries from Belgium and the Netherlands to New Zealand are increasing, according to industry association Potatoes New Zealand. Despite a slower August, September rebounded with the highest volume since 2017. Most of this volume is from the Netherlands. In the last quarterly report, there was concern that the export price to New Zealand was relatively flat at around USD $850 per ton. But subsequent monthly reports showed this increased to around USD $970 per ton. This is still below export prices from Belgium and the Netherlands to other global markets at around USD $1,030 per ton. Last quarter market share was estimated at three share points. With export volumes still going up, it was likely this would increase. A possible gross margin squeeze was envisaged as the price from the EU is used as leverage to drive lower prices from the NZ processors of frozen fries. With the disproportionate export price to NZ versus all other global markets, it would seem logical that the previously alleged dumping margins from Belgium and the Netherlands to New Zealand were likley to have increased. The latest quarter exports to Asian markets looks to have struggled, with declines seen on the top four compared to a year ago. It would appear these Asian markets are becoming increasingly contested for market share with suppliers from India, China and the EU all increasing their market share during the latest quarter. There has been total export growth of -15% in the latest quarter and 8% annual growth by volume. Value growth is now ahead of volume growth at -6% on quarter and 10% annual indicates NZ frozen potato exporters are starting to pass on price increases to o›set the significant input cost increases they will have experienced. Price increases and purchase limits for consumers WHOLESALE costs for potatoes in Australia have soared more than 25% after heavy rainfall and flooding wreaked havoc on farms, and as a result purchase limits and price increases are now hitting consumers. An incredibly long and wet season has meant farmers have struggled to plant and harvest their crops, leading to a supply shortage. Processing supplies have been particularly badly hit, forcing pubs, restaurants and fish and chip shops to source alternatives during the summer holiday chip peak. Australian supermarket, retail and consumer services chain, Coles, has introduced another temporary restriction of two- packs per person. A similar two-pack restriction was temporarily put in place in mid-December. Back then it was predicted there would be further supply issues in the New Year. “Poor weather in the eastern states has a›ected supply of some frozen potato products across the industry,” a spokesperson told 7NEWS .com.au . “We thank customers for their patience while we work hard with suppliers to minimise disruption and return stock to normal levels in the coming months.” The supermarket giant’s supply of fresh potatoes is una›ected. Woolworths Supermarkets, the Australian chain of supermarkets and grocery stores owned by Woolworths Group, did not have any limits on potato products. The shortage has hit some businesses so hard they have been forced to close owing to lack of stock. Roy’s Fish & Chips Takeaway Cafe in Bateman’s Bay, NSW, packed up shop twice in one week over the New Year because it had no chips, while Whyalla’s Topz Shopz Deli had to bump up the price of chips as a result of ths shortage and having to buy in from overseas. Other business have moved towards cutting their own chips to try to keep up with demand. Sweet potatoes substituted owing to chip shortage THE Australia-wide shortage has led some cafés and restaurants to temporarily substitute frozen potato chips with sweet potatoes, or take it o› the menu altogether. Potato grower and Victorian Farmers Federation vice president Katherine Myers stated: “The prolonged wet weather made it too di©cult to manage the crops that were in the ground, made it di©cult to harvest early crops, and it meant there were really quite significant delays in getting the new crops planted, particularly in the [NSW] Riverina, and in the Central Highlands here in Victoria, and in Tasmania.” Katherine said the drought in Europe last summer has impacted supply levels, as well. AUSVEG – the peak body for the Australian vegetable and potato industries – said a surge in demand for frozen potato products was also contributing to the shortage. She said she expected the shortage of frozen chips to continue through the year. ‘Woolworths Group, did not have any limits on potato products’.