CULTIVATION AND TECHNOLOGY Will the European advantage last? processors have been able to take advantage of the labour dispute affecting West Coast Pacific ports in the USA. Unions at the port have been operating a work-torule slowdown for a number of months which has reduced the amount of product entering and leaving the ports. It has meant that large restaurant chains such Top 20 fry importers in year to October 2014 in tonnes Rank Country 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 USA UK France Netherlands Japan Brazil Italy Spain SAudi Arab. Germany Mexico China Australia Ireland Russia Korea South Belgium Poland Philippines Greece Tonnes 782646 623157 564267 334632 319327 299407 244341 232300 204600 179723 138262 128667 125161 94920 105821 92333 89106 84763 79131 78624 Source: GTIS & World Potato Markets as McDonald’s and KFC have had to reduce or even drop fry portions from their menus. A continuation of the dispute will allow European processors to increase their presence in these key markets and US exporters will face a battle to regain market share when the dispute ends. Strong $ benefits Europe Another factor that is going against the US is currency. Continued economic uncertainty in Europe has driven the value of the euro down and the dollar up making US product more expensive and products sold in euros more competitive. Since last summer the value of the euro has dropped from US$1.37 to US$1.16, a 15% change. With Greece looking to renegotiate its debt provision and unrest among other European countries, it looks as though the euro will remand low for a while. But when it comes to exporting fries and other products, European does not hold all the trump cards. The US and Canada supply the white fries that many consumers want, in comparison to more yellow product that European processors specialise in. Another advantage for the USA is the greater stability of potato prices. In over-supplied years like this year, European processors may be able to make fries with potatoes that cost as little as €15/tonne or US$20/tonne, but in other years they may have to pay as much as €250/tonne (US$300/tonne). ● Cedric Porter Managing Editor World Potato Markets www.worldpotato markets.com Potato World 2015 • number 1 25 Pagina 24
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