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UK’s Dependence on Imports of Frozen Potatoes Increases Markedly

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UK’s Dependence on Imports of Frozen Potatoes Increases Markedly

IndexBox has just published a new report: ‘United Kingdom – Frozen Potatoes – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the frozen potato market in the UK amounted to $1.5B in 2018, declining by -2.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, frozen potato consumption, however, continues to indicate a relatively flat trend pattern. Over the period under review, the frozen potato market reached its maximum level at $1.7B in 2014; however, from 2015 to 2018, consumption stood at a somewhat lower figure.

Production in the UK

In 2018, approx. 458K tonnes of frozen potatoes were produced in the UK; approximately mirroring the previous year. Overall, frozen potato production continues to indicate a moderate contraction. The pace of growth appeared the most rapid in 2012 when production volume increased by 6.1% against the previous year. In that year, frozen potato production attained its peak volume of 657K tonnes. From 2013 to 2018, frozen potato production growth failed to regain its momentum. In value terms, frozen potato production amounted to $651M in 2018 estimated in export prices.

Imports into the UK

In 2018, the amount of frozen potatoes imported into the UK totaled 663K tonnes which remained relatively stable against the previous year. The total import volume increased at an average annual rate of +4.2% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, frozen potato imports reached their maximum in 2018 and are likely to see steady growth in the near future. In value terms, frozen potato imports amounted to $641M (IndexBox estimates) in 2018.

Imports by Country

The Netherlands (370K tonnes) and Belgium (268K tonnes) constitute the main suppliers of frozen potato imports to the UK, with a combined 96% share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Belgium.

In value terms, the Netherlands ($359M) and Belgium ($255M) appeared to be the largest frozen potato suppliers to the UK, together comprising 96% of total imports.

Import Prices by Country

The average frozen potato import price stood at $967 per tonne in 2018, picking up by 5.6% against the previous year. Overall, the frozen potato import price, however, continues to indicate a relatively flat trend pattern. Over the period under review, the average import prices for frozen potatoes attained their peak figure at $1,094 per tonne in 2014; however, from 2015 to 2018, import prices remained at a lower figure.

Average prices varied noticeably amongst the major supplying countries. In 2018, the country with the highest price was the Netherlands ($969 per tonne), while the price for Belgium stood at $954 per tonne. From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Belgium.

Source: IndexBox AI Platform

Senator Slams US-Korea Free Trade Agreement

Washington, DC –The two-year-old US-Korea Free Trade Agreement hasn’t done enough to open the Asian country further to US exports, particularly American-made cars and trucks and agricultural products, according to Sen. Debbie Stabenow (D-Michigan).

Stabenow is the new Chair of the US Senate Finance Committee’s sub-committee on international trade.

Criticizing a trade deal that the Obama administration heralded in 2012, Stabenow cited the treaty as a reason for “caution” in negotiating the proposed Trans-Pacific Partnership that, she said, stands no chance of being ratified this year as there are “some very sticky issues” involving Japan and other nations in the talks.

“We’re continuing to push and the reason for this hearing was to talk about Korea but also to send a message about Japan and what comes next,” Stabenow told the media at a press conference following her first sub-committee meeting.

The free trade pact, she said, “has fallen short of our hopes” while the US trade deficit with Korea “has increased by nearly 50 percent,” Stabenow said.

The agreement, she added, “aimed to open Korea’s markets to American automakers. But agreeing to phase-out tariffs on US-made automobiles hasn’t been enough. Due to non-tariff barriers, Korea remains one of the most closed auto markets in the world.”

Stabenow’s evaluation of the US-Korea trade pact were countered by the Office of the US Trade Representative which released a statement saying that through May, sales of ‘Big Three’-made autos to Korea are up by more than 20 percent and key agriculture products like dairy have seen a more than 40 percent increase in exports.

“These are real results that benefit farmers, workers, and small business owners across the US. We also fully expect that as further tariff elimination takes place and Korea’s economy improves, we will reap greater benefits from KORUS,” the statement said.

Since the Korea agreement took effect, tariffs have been reduced on US-made autos by 50 percent and the value of US auto exports to Korea have increased by 80 percent.

The Association of Global Automakers (AGA), the association representing major foreign automakers including Korean automakers Hyundai Motor Co. and Kia Motors, noted that after the deal foreign automakers have started “exporting thousands of US-made vehicles to Korea” that are “supporting thousands of American jobs.”

Five years ago, 23 import brands together held just 6 percent of Korea’s automotive market, the group noted.

The AGA has released figures showing that Toyota Motor Corp., Honda Motor Co, Volkswagen and Nissan Motor Co. exported to Korea a total of 14,637 vehicles produced in the US in 2013. The group acknowledged that implementation “has not been seamless, and it is unrealistic to expect that an agreement of this magnitude and complexity could be implemented without encountering some challenges.”

08/06/2014