Abstract
International trade of processed potatoes, especially frozen french fry exports, has become an important part of the US potato industry. In China, one of the world’s biggest potato producing countries, consumption of US frozen french fries has significantly increased since the late 1980’s. By employing economic theory and econometric techniques, this study evaluates China’s current frozen french fry market and predicts its future development.
Export demand models are developed for US frozen french fries in Greater China (Mainland China, Hong Kong, and Taiwan). The study finds that US foreign direct investment and fast food restaurants in China have great influence on the market demand for US frozen french fries. Other variables in the model include price of US frozen french fry exports, consumer income, population, price of substitutes, and trade barriers.
The study forecasts that Mainland China’s frozen fry imports will exceed Taiwan and Hong Kong after year 2000. In 2005, US frozen french fry exports will increase to 227,000 tons to China, and 454,000 tons to Greater China. Although there may be some challenges, China’s market provides opportunities for the US potato industry.
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Zhang, L., Guenthner, J.F., Dwelle, R.B. et al. U.S. opportunities in China’s frozen french fry market. Am. J. Pot Res 76, 297–304 (1999). https://doi.org/10.1007/BF02853628
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DOI: https://doi.org/10.1007/BF02853628