 In our recent series on the effects of the recession, we
have now looked at
fast food,
retail frozen foods and
potato prices. And a bit longer ago we discussed
the savoury snacks sector. However, one sector we never
addressed: dehydrated potato products.
And in the United States, this sector is maybe the most
seriously affected, though not by the recession alone.
Dehydrated potato products include potato flakes, potato
granules, potato flour and potato powder. They are used in
consumer products such as instant potato mash, but large
amounts are also used as ingredient in snacks and in a range
of other foods (soups, bakery, meat)
The USDA reported last week on
the potato stocks in the US and this overview included
data on the processing of potatoes. The total amount of
potatoes used for processing of harvest 2008 up to April 1
was down 7% compared to last year and down 8% compared to
two years ago.
Potatoes used for the production of
dehydrated potato products was down 15% compared to last
year and down 23% compared to the same period two
years ago. I looked at the use of potatoes for dehydrated
potato products by month and for February and March the use was
lower than in any year since 2003 (harvest 2002).
Maybe this reduction should not come as a total surprise
given the recent plant closures and staff reductions by
potato flakes manufacturers (North
American Foods [RDO/Idahoan/United II Potato Growers of
Idaho ],
Basic American Foods), but it is a considerable
reduction.
So are consumers in the United States eating less
dehydrated potato products?
This does not seem to be the case. The
per capita consumption of dehydrated potato products in the
US seems to be stable if not on the rise after hitting a low
in 2006,. Furthermore, a
product like potato flakes could very well get a boost from
the recession, similar to retail frozen foods.
So what is the issue?
The import and export statistics
for potato dehydrates is revealing: Import surged more than
50% while export dropped for the first time after a steady
climb (Kudos to the
USPB!) in recent years.
Import and export figures are
for calendar years in millions of dollar and include potato
flakes, granules, potato meal, (snack) pellets and potato
starch (Data source: USDA/ERS updated March 2009).
Unlike in the market for ware potatoes, the market for
dehydrated potato products sees global competition due to
the long shelf life and relative ease of transportation of
these dry potato products.
Enjoy reading,
Paul van Eijck
We have added several events for 2010 to the PotatoPro
events Calendar. So if you like to plan ahead....
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 The
British Frozen Food Federation has concluded a study on
the opportunities to save energy in the frozen food
distribution chain. The study was supported by the Carbon
Trust
A range of practical solutions was identified that may be
applied in many different companies.
We recommend to check out these solutions in detail. A link
to the report can be found in:
Energy savings possible in the Frozen Food cold chain
Some tips may even be beneficial for potato storages with
mechanical cooling systems.
French Fries and Potato Specialties
Chips and Snacks
Dehydrated Potato Products
Potato Starch
Other Potato Products
Ingredients for Potato Processing
Processing Equipment
Potato Supply Chain
QSR Restaurants
Health and Nutrition
Energy and Environment
Food Trends
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