Implementing regulation 2020/593 - Authorisation of agreements and decisions on market stabilisation measures in the potatoes sector - Main contents

EN

Official Journal of the European Union

L 140/13

The potatoes sector can be divided into fresh potatoes, which are mainly purchased for home consumption, and potatoes for processing, which are used in animal feed and processed food products, such as frozen potatoes (including frozen chips), dried potatoes, prepared or preserved potatoes.

The Union production of potatoes amounts to approximately 52 million tonnes, of which 19,5 million tonnes correspond to potatoes for processing. The biggest Union producers of potatoes for processing are Belgium, Germany, France, Italy and the Netherlands. The production of frozen chips is estimated to cover approximately 41 % of the production of potatoes for processing.

The Union is a net exporter of processed potatoes. On average, over the last 5 years, an equivalent of at least 4 million tonnes of potatoes for processing is estimated to be exported from Belgium, Germany, France, Italy and the Netherlands to third countries in the form of processed potato products. Exports of frozen potatoes and, in particular, frozen chips, are particularly significant under normal market conditions: 64 % of frozen potatoes exported worldwide come from the Union and the value of exports of frozen chips from the Union to third countries was estimated at EUR 1,85 billion in 2019.

Due to the current pandemic of COVID-19 and the extensive movement restrictions on persons put in place in the Member States, producers of potatoes for processing are experiencing economic disruption that is leading to financial difficulties and cash-flow problems.

The spread of the disease and the measures in place limit the availability of labour, compromising notably the stages of production, processing and transport of potatoes for processing.

The mandatory closure of restaurants and other hospitality establishments such as school and work canteens, as well as the cancellation of sporting and entertainment events, such as cultural and open air festivals, sports tournaments, in the Union and in third countries, has also brought the operation of the hospitality and catering to a halt, leading to significant changes in demand patterns for potato products. As consumers are no longer eating out or buying fast food to a significant extent, consumer demand has shifted towards fresh potatoes for home cooking. Moreover, while consumers have increased their consumption of certain processed potato products, such as crisps and dried puree, this cannot compensate for the drop in demand in the hospitality and catering industry.

In addition, buyers in the Union and on the world market are cancelling contracts and delaying the conclusion of new ones in anticipation of further price falls. Moreover, exports are affected by logistical challenges, as the start of the pandemic of COVID-19 in China has led to significant port congestion there and elsewhere. The period of increased blank sailings is expected to continue at least until June 2020, leading to containers being scarcer, in particular the ones for fresh and frozen goods, rates increasing significantly and exporters seeing their shipments postponed....