U.S. opportunities in China’s frozen french fry market

An Economic Analysis of Potato Demand in China

“…Mainland China has accounted for most of the increase: from 661 tons in 1992 to 33,237 tons in 2000, reached the record high of 69,787 tons in 2004 and then dropped to 58,806 tons in 200658,806 tons in (FAO 2009). The increase in imports primarily resulted from the demand for Western-style food in hotels and fast food restaurants like McDonald's and KFC (Zhang et al 1999;Wang and Zhang 2004). According to Wang and Zhang (2004), China's frozen potato import is likely to increase in the short run but, in the long run, China may not become a huge importer of frozen french fries.…”

“…Potatoes are relatively inexpensive, easy to keep, and can be cooked in many different ways. In addition to the traditional consumption of potatoes, french fries, mashed potatoes, potato chips, and many other potato products are gaining popularity in China, especially among young urban consumers (Zhang et al 1999;Curtis et al 2003).…”

“…As China moves towards a market economic system, its potato production, processing, and trade are increasingly determined by consumer preference and demand. For example, as discussed by Zhang et al (1999), the increasing popularity of Western foods like french fries and potato chips has significantly increased the demand for such potato products and changed China's trade behavior of potatoes and potato products.…”

“…With a growing potato industry and a gradual transition toward a market economy, China has significantly expanded its trade of potatoes and potato products in the past two decades (Zhang et al 1999;Wang and Zhang 2004;FAO 2009). For example, while China's total exports of fresh potatoes increased from 65,966 tons in 1986 to 353,908 tons in 2006 or at an average rate of 9.3% per year, its frozen potato imports, as shown in Fig.…”

“…Among the limited studies with a focus on the economic or market aspects of China's potato industry, Zhang et al (1999) examined the growth in U.S. 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 China's potato output (mmt) 1961 1966 1971 1976 1981 1986 1991 1996 2001 Potatoes ( , 1961-2003 frozen french fry exports to mainland China, Taiwan, and Hong Kong from 1987 to 1997 and then forecasted U.S. frozen french fry exports to the markets for the period of 1998 to 2005. According to the study, the major factors for U.S. frozen french fry exports to the markets included U.S. foreign direct investment in China, price of U.S. frozen french fry exports, number of McDonald's restaurants in China, price of Canadian frozen french fry exports, and average consumer income.…”