The market for French fry raw material is divided into two parts. Of the 421,000 tons of raw materials used by the factories, 76,000 tons were free. With 80,000 tons, nearly as many potatoes were imported in France and 270,000 tons of contract goods were processed. The consignors try to achieve at least 30 € / dt in the export of frit raw material of the highest quality. The domestic factories have not paid that yet. But there are buyers in Southern Europe who spend that. In any case, you can not send weak qualities on the long journey, and so the factories took advantage of it in the first few weeks of the season in order to get cheap raw materials on the one hand and not to spoil anything on the other. Since the French fry market has not grown for years, one can assume that finished products from the previous processing are waiting for buyers abroad. Although 80,000 tonnes have been imported in the first four months, almost as much raw material for processing has been imported as in previous years, imports from Belgium, which were mostly contracted, are completely missing. Belgium has a much greater quality problem with its bintje than France or the rest of the EU.It could even happen that French fry factories deliver TK chips to Belgien so that exporters can fulfill their contractual obligations there. In Germany, more precisely on the German Lower Rhine, REKA Rheinland has today moderately raised its prices for free frit raw material. For Fontane from today 27,0 to 27,5 € / dt, for Agria 28,0 to 28,5 € / dt and for Inno-vator 29 to 29.50 € / dt. This corresponds to an increase of 50 cents / dt. Since the potato processors in this country but show no interest in free raw material, goes some in the Benelux, where you can also meet the required prices. The vast majority of farmers do not have any free resources anyway, and if so, they're waiting for even higher prices. Nevertheless, the business with free raw materials has become more lively in Germany as well. Whether this turns out to be sustainable, has yet to show, especially since many factories will use the upcoming Christmas to make a little longer processing break. Currently, the market is considered balanced and much higher prices could quickly stall the friendly trend from a farmers' point of view.The example of France shows that the factories have already prepared for possible raw material shortages at an early stage. It will have been similar in Germany and Holland. Wherever there is an excess of supply or the price has not yet been enforced, these surpluses are sent to Belgium. So also from Great Britain. Exporters are currently shipping fritters Maris Piper for 29.20 to 30.0 € / dt. In the domestic one achieves "only" 26.90 € / dt. Meanwhile, the Canadian Kennel Federation reports that of the 350,000 acres grown there with processing raw material, 15,000 acres could not be harvested. That does not sound so dramatic at first, after all, it's only 4.3% less. Due to the very long distances, however, it is not worth carting from one growing region to another. In North America, there is also no market for free processing raw material. Everything the factories need is contracted. If 4.3% of the land can not be harvested, then this raw material is missing and so even in overseas the raw material remains scarce until the next harvest.These are good arguments for the suppliers of fries in order to enforce higher prices on the world market. The high price level in Europe for free goods can also be cited as a reason for this. The market transparency, which is well documented by the futures exchange, is a good fit for the fry providers.
ZMP Live Expert Opinion
The use of potatoes in French fry factories was from July 1 to the end of October with 421,000 tons as high as ever. One reason for this are the many bad parties that would not survive a winter camp. To avoid killing anything in a year where the processing raw material is extremely scarce in Europe, such potatoes have been favored in recent weeks. In part, the cost of reprocessing was so great that only half could be paid for free raw materials, as was the case for contracted potatoes. In contrast to previous years, 18% free raw material was used in the first four months of this year's season. Up to now, 6-8% were usual.