In the post-pandemic era on an international scale, China’s exports of a wide range of agricultural products, including potatoes, have declined to varying degrees. Specifically, exports of fresh or refrigerated potatoes in 2021 hit an 8 year low. In December 2021, the export volume of fresh or refrigerated potatoes was 28,100 tons, which was about 9,900 tons less than the export volume in November, with a reduction of 26.15%. It decreased by 8,500 tons compared with that in December 2020, with a decline of 23.27%.
It is understood that the sea freight rate rose to a high level in mid-January 2022, while it began to rise and fall in the second half of the year. The average sea freight rate decreased by 500 – 1,000 US dollars/container until the end of January. Specifically, the sea freight charges for exports to Malaysia fell from 3,300 – 3,500 US dollars/container in mid-January to 2,600 US dollars/container at the end of January. The sea freight rate for exports to the middle east decreased from 8,500 – 8,800 US dollars/container in mid-January to 7,000 US dollars/container at the end of January. In the post-pandemic era, even if there is a possibility that the sea freight rate could reduce in the short term, it will be difficult to reduce to the level of the previous year of the pandemic.
The current reduction of sea freight rates did not lead to an increase in potato exports in January. On the contrary, it was the off-season of potato exports from January to March because foreign countries such as Pakistan and Bangladesh have a new production of potatoes on the market during this time. The prices and quality of newly produced potatoes have dual advantages and directly affect the export volume of potatoes from China’s domestic stocks.
It can be expected that potato exports in February and March after the Spring Festival will be affected, as it will be the off-season. The possibility of a significant increase in export volumes is unlikely, and it will be difficult to positively support the domestic commodity potato market with a small export volume.
Source: Wo De Nong Chan Pin
