10/13/06 China a focus of WSPC planning

Farm and Ranch October 13, 2006 China's growing economy and the rising income levels there have led to tremendous growth in the fast food market including demand for frozen French fries. A recent report by Rabobank predicts that consumption of French fries in China is expected to increase about 20 percent over the next five years. Chris Voigt, Executive Director of the Washington State Potato Commission, says the strong fry demand in China is a great opportunity but he says China can not only be a market, but a competitor. Voigt: "We are going to spend a considerable amount of time this December really evaluating China in our long term planning process. But I think what we are anticipating is that we will continue to see growth in the China market but a some point in the future we have to realize that China will become a competitor and actually have a competitive advantage to us in other markets, being able to ship product to some of our other Asian countries we rely on. So, in the short term a wonderful opportunity. In the long term a possible threat to continued exports." Although potato production area in China is increasing it still imports 70 percent of its French fries. Just five percent of U.S. fry exports go to China. Japan remains the big export market taking 41 percent of U.S. French fry exports. That's the Northwest Farm and Ranch Report. Brought to you in part by the Washington State Potato Commission. Nutrition today! Good health tomorrow! I'm Bob Hoff on the Northwest Ag Information Network.