Potato exports show signs of recovery

Published 9:43 am Wednesday, November 11, 2020

Potato coverage has been increased in the federal CFAP relief program.

U.S. potato exports are starting to recover.

Potatoes USA said exports in July-September  fell as the coronavirus pandemic dragged on  demand, but have improved in many segments since.

“We expect that demand in the international marketplace will continue to recover, and that probably by as early as 2021 we’ll be returning pretty close to pre-pandemic levels,” Potatoes USA Chief Marketing Officer John Toaspern said. “In terms of U.S. exports to meet that demand, I expect our exports should also return to similar levels, though I am a bit concerned about our supply situation — particularly for the frozen products — to meet a full recovery.”

Plunging foodservice demand in U.S. and international foodservice markets prompted processors to reduce contracted acres last spring.

“The question is just how quickly and robustly will the demand recover, both in these international markets as well as in domestic foodservice relative to reductions they (processors) made in their contracted acreage for raw materials,” Toaspern said.

Lower export volume from July through September reflected weaker demand in many markets, particularly Southeast Asia and Central America, as well as tight supplies, Potatoes USA said. Year-earlier totals hit record highs.

Exports of frozen potato products fell in the quarter, but at a lower rate in September. Quarterly declines materialized in China, Indonesia, the Philippines and Vietnam. South Korea produced a small gain while Japan and Taiwan showed modest declines.

Fresh-product exports increased in Mexico, where a retaliatory tariff in 2019 prompted a switch to Canadian and European stock.

A drop in exports of dehydrated products reflected tighter supplies primarily, Potatoes USA said. Year-to-year increases occurred in Japan, Korea, Taiwan and Saudi Arabia.

Fresh-potato exports dropped slightly in the quarter, as Canada reduced movement of raw potatoes for frozen processing, but rose in its final month. Exports were up or even compared to a year ago to target markets in Asia, Central America and Mexico, which notched a small gain in September. New, year-round access to Japan fueled a threefold gain there. Fresh exports increased in the quarter in Taiwan and the Philippines.

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