Processed potatoes in China account for about 15% of total production and include products such as starch, dehydrated potatoes, chips, and frozen French fries (FFF), according to a report presented by USDA Foreign Agricultural Service – “China – Peoples Republic of Potato and Potato Products Annual Report”.
Regarding frozen French fries, China’s MY2018/19 production is forecast at 290,000 MT, a 15% increase from 250,000 MT in MY2017/18. Due to increasing demand for FFF, China’s potato processing industry is building additional processing capacity in Inner Mongolia. In China, there are less than ten FFF processing lines and the addition of a new line will noticeably increase capacity. This new line is expected to begin production in MY2018/19.
When it comes to consumption, frozen French fries will account for a larger share of China’s overall potato consumption. According to the report, industry contacts also believe China’s FFF consumption will continue to increase in the future at a moderate pace. Continued urbanization and the increasing number of fast food restaurants (the primary channel for FFF), are major contributors to consumption growth. Industry sources also report that the sale of FFF at convenience stores and supermarkets has increased rapidly in recent years with more and more Chinese consumers cooking FFF at home as a result of food safety and health concerns.
