China is pushing the US and Canada out of the French fries market in Asia

China is rapidly strengthening its position in the global frozen French fries market, displacing traditional exporters – the United States and Canada – from key Asian markets, including Japan, Indonesia and the Philippines.

This is stated in a report by DCA Market Intelligence, published at the end of April 2024, Potatopro.com reports.

China began active export shipments of French fries only in 2022, and in 2023 Lamb Weston opened a high-tech processing plant in Ulanchab (Inner Mongolia), which is known as the “potato capital of China”. The volumes produced are already enough to meet domestic demand and exports to neighboring countries, including Japan.

“My personal opinion about China: when they take on something, they have the support of the government and act in a very organized way. This is a very gradual growth that you don’t pay attention to. And then you turn around and you have a tough competitor,” said Victoria Stamper, CEO of the United Potato Growers of Canada.

According to her, competition from China is particularly affecting producers in North America, as Canada exports $2.7 billion in French fries for the 2023-24 season, mostly to the United States. For its part, the United States sells French fries to Japan. If demand from Japan falls due to Chinese products, purchases from Canada also decrease.

Analysts believe that it is precisely large-scale investments in processing that have become the key to the rapid growth of exports. The domestic market has also given impetus: the development of fast-food chains such as KFC and McDonald’s in China has increased demand and stimulated production.

According to DCA data, China is gradually capturing new markets thanks to competitive pricing and the availability of large volumes.

Tags: USA, Asia, China, Canada