Foreign fries no longer welcome as China ramps up export pace

China saw record volumes of deep frozen French fries exported in August and September of this year. Total export levels for a twelve month period continue to be more than doubled compared to the previous period. This also means that the country has changed its role from a net importer to a net exporter, with import levels diminishing. Chinese exporters shifted almost 34,000 tonnes of frozen French fries in August and over 33,000 tonnes in September. That is 117% and 87% more compared to the same months a year ago. Total export levels for the twelve months leading up to September now show a more than doubling of the export level. Asian buyers Other Asian countries continue to be the most important customers of China. The Philippines is leading the way, with almost 6,000 tonnes purchased in August and 5,620 tonnes in September. For the twelve month period their purchases are up 87%. Indonesia is taking second place and Japan is closely following behind. Export levels to the countries are up almost 90% and 60% respectively. Thailand is another fast growing destination, taking 140% more fries over a twelve month period. The level of 4,500 tonnes has been hit four times so far this year, which is a far cry from the 1,500 to 2,500 tonne level it took before. Some of the Chinese success is coming from North Africa. Saudi Arabia is China’s biggest buyer, taking 13,200 tonnes so far this season. In the season before it’s import levels barely reached 1,250 tonnes and it wasn’t even a destination in the season before that. Volume-wise the country is still a relatively small player, but at this pace it won’t take long for that to change. Another buyer are the United Arab Emirates, taking 8,650 tonnes so far this season. That is a 400% increase over the previous period. Israel is another new customer in this part of the world for the Chinese. Partner Russia Since May Russia has also shown itself on the Chinese fry market, taking 1,250 tonnes in June. That level has come down a little in recent months, but it still taking near to 1,000 tonnes a month. A far cry from the 80 to 100 tonnes it purchased monthly during the previous year. It remains to be seen whether this level will hold, since Russia has had a considerably better potato harvest this year, but undoubtedly China will remain an import partner. China owes a great deal of its export success to its highly competitive price level. The average export price in August was €910 per tonne and €898 in September. Over a twelve month period fry prices have now reduced by almost a fifth compared to the same period before. The time when frozen fry prices reached record heights on the world market are definitely over. On top of that, China has a strong advantage in terms of logistics in Asia compared to European and US players, who are taking a big hit. Lower imports The side-effect is that import levels for China have reduced to very low levels. In August just 1,550 tonnes and in September 560 tonnes were imported. That is the lowest level in years. The total volume this season is down 40%, which goes to show that imports have been reducing over a longer period as the country is becoming self-relying on French fries and other potato products. Belgium and the US are the biggest suppliers, with the Netherlands taking third place.