Buildup of frozen potato stocks (french fries) in the US 'raises caution flag'

According to the editor of North American Potato Market News (NAPMN), stocks of frozen potato products increased by 66 million lbs during January.

While the increase is virtually identical to the five-year average January buildup, it tends to confirm that demand for US frozen potato products has turned soft, says Bruce Huffaker in the latest issue of NAPMN.

He notes that USDA reports that the industry had 1.16 billion lbs of frozen potato products (including French Fries) in storage, on January 31. That is 75 million lbs above year-earlier holdings, a 6.9% increase.

That is the highest inventory level, for this time of year, since 2005, according to NAPMN. Data on processing use and frozen potato stocks suggest that January sales of US frozen products fell 7.4% short of last year’s pace.