Record potato product exports in 2016 RE SEARCH competitors. The average price of US fry exports in 2016 was US$1,124/tonne which is 44.0% higher than the average EU price. The average Canadian fry export price was US$927/ tonne, 17.5% lower than the average US price, but 19.0% higher than the average EU price. European processors continue to enjoy a currency advantage as the euro remains weak against the US and Canadian dollars. US record Along with the EU, the US also saw record fry exports during 2016 when the country shipped nearly 995,000 tonnes, up 7.0% on the 2015 total. It is expected that the country could break the one million tonnes of exports in the coming months. Fry exports have increased by nearly 60% in the last 10 years. The US is the dominant player in the Japanese, Mexican and Chinese markets, but the country had mixed fortunes in those markets. Sales to Japan were up 11.5% and rose by 10.0% to China, but they fell back by 6.0% to Mexico. US potato product exporters (and other food manufacturers) have expressed their concern about President Trump’s decision to abandon a Pacific region trade deal that included Japan, Mexico, Canada, South East Asian countries and Australia. The new President has also criticised the existing North America free Trade Agreement between the US, Canada and Mexico and has withdrawn from negotiations for an Atlantic deal. Canada could benefit from the USA’s reluctance to do more trade deals. It has recently signed a deal with the EU, although that was not an easy process. Currently Canada relies on US demand for its fries, with 86.0% of the 988,500 tonnes of product it exported in 2016 shipped south of the border, a higher proportion than ever. Canada was able to increase sales to other markets, including the Philippines and South Korea, but it saw sales to Japan fall by more than a third and exports to China down by more than 10%. New players on the block Last year saw the establishment of some smaller players on the fry market. Argentine exports were up 25% to nearly 190,000 tonnes (mainly to Brazil) and New Zealand exports were up 10% to 60,500 tonnes (mainly to Australia). Egypt saw its fry exports fall by 22.0% to 40,000 tonnes as Arabian buyers switched to EU and US suppliers. But Turkey established itself selling nearly 4,000 tonnes of fries to China, 5,500 to the EU and 6,000 tonnes to Brazil. Chinese fry exports slipped by 10% in the year to 11,000 tonnes, but India exported nearly 6,000 tonnes for fries, up 13.0% on the year before. As the world continues to demand more potato products it puts more pressure on the established players to grow and process more potatoes. That creates opportunities for them, but also for newcomers too. For more on the weekly market information service World Potato Markets see www.worldpotatomarkets.com ● Argentine exports were up 25% to nearly 190,000 tonnes (mainly to Brazil). Potato World 2017 • number 1 31 Pagina 30

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