The North American potato industry might have had a bit of an "overreaction" when it reduced acreage at the beginning of the COVID-19 pandemic, according to the marketing organization for the industry.
Harvested acreage was down 2.5% last year to about 914,000 acres, from 937,000 acres harvested in 2019.
Most of the decline was in Washington and Idaho potato acreage as processors reduced production, said John Toaspern, chief marketing officer for Potatoes USA.
"It now appears that demand for frozen (potato products) has recovered faster than they anticipated, so supplies are tight," said John Toaspern, chief marketing officer for Potatoes USA.
Washington acreage dropped 6%, from 164,000 in 2019 to 154,000 in 2020.
Idaho acreage decreased 2.8% from 308,000 to 299,500 acres.
However, Oregon acreage increased 4.7%, from nearly 43,000 acres in 2019 to 45,000 acres in 2020.
The U.S. lost some overseas market share because the European Union has been selling low-priced product, Toaspern said. The EU did not reduce its acreage.
Shipping costs are also a factor, he said.
Last year, the cost of shipping EU potato products was $829 per metric ton, compared to the cost of shipping U.S. products, $1,158 per metric ton.
The National Potato Council kept in close contact with the Trump administration, and will continue discussions with the Biden administration, CEO Kam Quarles said.
The council wants to make sure surges in EU fry products don't undercut a "weakened and recovering" domestic market, Quarles said.
The industry lost some gains made in recent years due to the pandemic, Toaspern said, but is about even with its position five years ago.
"While we would just as soon not lost those sales, we're not in a terrible position," Toaspern said.
Frozen potato exports are down 19% in the current marketing year compared to the same time last year. Dehydrated potatoes are down 3% and fresh potatoes are down 3%, for a total decline of 12.5%, Toaspern said.
"That's a lot, I'm not trying to discount it, but it feels like it could have been a lot worse," Toaspern said.
Pandemic restrictions are likely to last for much of 2021, he said.
Toaspern predicts world economic recovery will be "slow and uneven."
Competition from the EU and China will be fierce, but demand for U.S. potatoes will fully recover during the 2022 marketing year, Toaspern predicted.
The industry wants to ensure that the promise of new trade agreements with Mexico, Japan and China results in "durable access" for U.S. potatoes, Quarles said.
Quarles also expects a ruling from Mexico's Supreme Court on access for U.S. fresh potatoes in the first half of 2021.
There is "little daylight" between the outgoing and the incoming administrations on this issue, Quarles said. "That consistent message from the U.S. is a good thing. We intend to keep the pressure on until we get the resolution that is rightfully ours."
COVID-19 remains the most immediate challenge the potato industry faces today, but it will not be the last crisis, Quarles said.
"Hopefully the actions we took during these past few months will also be applied toward whatever comes at us in the future, with similar productive results," he said.
Toaspern and Quarles spoke Jan. 27 during the Washington Oregon Potato Conference, held virtually.
February 05, 2021
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U.S. potato industry looks to regain overseas market share - Capital Press
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