Between 1995 and 2005 processed potato output rose from five million tonnes to over 10 and the value of these transactions doubled from 2,000 million dollars to almost 4,000. Fresh potato was worth less than 2,500 million dollars for an output of just under 10 million tonnes.
These trade figures highlight another clear trend in the sector: fresh potato consumption in developed countries has been decreasing for over a decade. The strong demand for fast food, snacks, and prepared products has driven annual growth in the processing industry and has been caused by social change brought about by the growth in urban populations with increasingly less time to cook.
Potato production in developed countries, and Europe in particular, has decreased by an average of 1% in the last 20 years. In contrast, developing countries maintain an annual 5% growth rate, mainly in China and India. These two countries are responsible for 30% of the world’s potato production (China, 22% and India, 8%).

In 1994, the E.U. produced 29%, but by 2005 output had fallen to 20%. If this data were analysed today, the figures would almost certainly be even lower. Should the trend continue, then in just twenty years’ time production in developing countries will exceed that of the developed world by 20%.

Commercial policies

Ad valorem import duties are used to protect domestic fresh potato markets. These restrictive policies include health and phytosanitary measures and technical obstacles to trade. The consolidation rates for World Trade Organisation agreements vary considerably. The potato is a classic example of the “progressivity of duties” where importing countries protect their processing industries and the processed product is subject to higher duties than the raw material itself.