Figures recently published by Belgapom, the Belgian potato trade and processing industry association, chart the negative impact of the novel coronavirus (SARS-CoV-2) pandemic on the sector. Only 5.08 million tons of tubers were processed into fries, mashed potato products, crisps and flakes in 2020. That equates to a decrease of 4% compared to 2019, as the production level fell to its lowest point in three years.
In addition, a 15% fall in investments to €248 million in 2020 has largely been attributed to the corona health crisis. Direct employment in the sector took a hit too, with a 16.5% payroll decrease from 5,001 employees in 2019 to 4,179 last year.
Production figures in the frozen sector fell by almost 100,000 tons from 2.23 million to 2.13 million tons, which translates to a volume drop of approximately 4.5%. The impact on the production of fresh fries was far larger relatively speaking, as output declined by 66,000 tons, or 18.7%. Slippage was limited to 2% for other products (mashed potatoes, crisps, flakes and granules) to 11,000 tons (from 684,000 to 671,000 tons).
On the other hand, 2020 export figures for frozen potato products show that the Belgian producers were able to limit the decline compared to the figures for companies based elsewhere in Europe. This can be explained by the fact that the Belgian industry focuses more on the retail sector than do frozen potato packers in the Netherlands and France. It should also be noted that quite a few Belgian growers sell their potatoes to processing companies in those countries, so the pandemic’s impact is greater on those arable farms.
Meanwhile, Brexit played a role in the production and sale of frozen potato products, as the United Kingdom is the second largest buyer after France of such products. With an eye to Brexit at the end of December, exports across the English Channel rose sharply. It would seem likely that a correction can be expected in the beginning of 2021.
Hopeful New Year, Though Full of Challenges
The increasingly availability of various Covid-19 vaccines offers hope that by the second half of 2021 measures including lockdowns, curfews and the ban on gatherings will be reduced or even revoked so that life can gradually return to a semblance of pre-pandemic normality.
While the role of the hospitality and foodservice sectors is crucial for the recovery of the Belgian and global potato market, as of today it remains unclear when and how former levels of out-of-home dining will be allowed to resume.
Come what may, members of the Belgian and European potato industry are looking forward to finally meeting in person again at the Interpom 2021 European potato trade fair set for November 28-30 at Kortrijk XPO. For more details on the exhibition, visit www.interpom.be.
