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PNZ Frozen Potatoes Trade Report No.4 - March 2023

Strong growth of European frozen fry exports to New Zealand, signs slowing

For the quarter ending January 2023:

  • Export volume to New Zealand down 19% on quarter ending October 2022, which may be an indication exports are slowing.
  • However, still very strong growth annually with quarter up 46% on quarter ending January 2022 to New Zealand
  • Export price to New Zealand increasing at $1,100/Tonne.
  • Contrastingly, export price from Belgium and the Netherlands to all non-EU markets for January $1,343/Tonne which means that the price to New Zealand is still of concern and may be depressing prices for New Zealand processors.

Exports of frozen fries to New Zealand from Belgium and the Netherlands.

The Netherlands has gained 2 market share points of the New Zealand market in the last year moving from 3 to 5 share points. If this is an issue for the New Zealand industry, the trade remedies legislation is a means to potentially remove any harmful effects, even if there are supply constraints locally.


New Zealand frozen potato exports and imports

Exports

Latest quarter exports to all markets a real concern with a decline of -24% on quarter year ago.  As mentioned last quarter the Asian markets are becoming increasingly contested for market share with suppliers from India, China and the EU all increasing their market share latest quarter. This is reinforced with commentary from the World Potato Markets report which has also noted this trend in recent months. 

  • As mentioned, total export growth of -24% latest quarter and -1% annual by volume.  On a positive note, value is ahead of volume growth at -10% on quarter and 4% annual.
  • Summary of key export markets where exports greater than 2,000 tonne annual.

Imports

Total imports last 12 months 20,466 tonnes with annual growth 5%.  In contrast to last quarters commentary growth on quarter is 13% which should be of alarm to New Zealand processors, especially as this growth is totally attributable to European exporters.

  • Based on a New Zealand market size of circa 100,000 tonnes the Netherlands have grown their share of the New Zealand market from 3% to 5% in the last year.
  • Imports from India in latest quarter of 39 tonnes may indicate some of the frozen fries from India to Asia have now made there way to New Zealand as the export price of this is much lower than the products previously exported from India with a free on board cost of $2.25/kilogram
  • Outside of the growth of imports coming from India the only other exporters in growth to New Zealand are European exporters with the most significant being Belgium and the Netherlands
  • Summary of key import markets where imports greater than 2,000 tonne annual.

Source: potatoesnz.co.nz

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