US: Frozen Fry Demand Recovers, Report Shows

In a recent report published by North American Potato Market News, the frozen fry market demand is shown to be improving quicker than the industry had previously anticipated.

The lack of foodservice demand due to COVID-19 shutdowns and restrictions has created a well-documented backup in the potato supply chain. Despite being reduced to drive-thru only in many areas, Wendy’s sales were down just 2.1%, year-over-year, the week ending May 2, the report shows. In addition, fry processors moved 112.8 million pounds of freezer stocks during April, which was the largest movement during the month since 1993, according to NAPMN. That may be related to production downtime, however. For example, a Lamb Weston plant in Washington closed temporarily last month due to an employee testing positive for COVID-19. McCain also has confirmed layoffs at Canadian facilities.

Restaurant chain sales in the U.S. improved five consecutive weeks from early April to mid-May, although were still down 21%, year-over-year, the week ending May 17.

Some states are starting to allow sit-down restaurants to reopen, if even at 50% capacity, in areas where the virus is less prominent. With schools still closed and non-essential travel greatly reduced, foodservice demand won’t approach normality for the foreseeable future.