BusinessMarkets & PricingTight Supplies Drive U.S. French Fry Sales Slowdown

Tight Supplies Drive U.S. French Fry Sales Slowdown

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With raw supplies for processing tight, it will drive down American french fry sales throughout the rest of the year, the Jan. 20 issue of the North American Potato Market News (NAPM) says.

United States frozen potato products will decline 2.4 per cent during the year ending Nov. 30, the report says. This would mark a 5.8 per cent increase though over the previous year.

“Raw product supplies will be tight from now until the middle of July. That is likely to reduce December-November processing use by four million cwt.”

NAPM says with supplies tight, imports from Canada are likely to increase. And with freezer inventories lose to pipeline minimums on Nov. 30, 2021, NAPM doesn’t expect fryers will be able rebuild those inventories during the coming year.

NAPM is projecting 2021/22 domestic consumption of frozen potato products will total 11.53 billion lbs, which was a 0.2 per cent decline from the previous year. However, domestic com consumption increased six per cent during the previous year.

“Demand remains strong, but the raw product is not available to support additional growth this year.”

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