Tuesday, May 27, 2008

Processed Potato is BIG

Just saw this today: http://www.fruittoday.com/articulos.php?id=1210585050939587&idioma=E

Wow! The processed sector has blown past the fresh market, both in raw potato consumption (barely) and revenue (60% more). Big sea change!

The other bit is the shift in potato production from developed to undeveloped regions. Should come as no great surprise, particularly in view of the potato quality issues in western Europe and UK the last few years. Seems like they experience either drought or flooding, but nothing in between! An I keep hearing of companies who plan to build new potato processing plants in eastern Europe- Russia, Ukraine, Poland, Czech Republic, Belarus, etc. Seems to be an ideal region in terms of weather. Perhaps economic and political conditions are less clear.

What will things look like in 10 years? With potato production in China and India soaring, will we see many new plants there? How will they deal with the horticultural, infrastructure and economic challenges there? We we see some plant closures in western Europe and UK? We people still be consuming fried strips in huge volumes, or will demand shift elsewhere? Do we see lots of specialty products rising, or mass production of a few standards to keep costs down?

Lots of questions...

Tim

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