Northwest potato stocks April 1 remained near year-earlier levels despite COVID-19 disruptions in 2020.
USDA’s National Agricultural Statistics Service pegged Northwest stocks at 87.7 million hundredweight, up by 0.3% compared to a year earlier.
Year-to-year changes included bigger crops in Idaho and Oregon, and reduced disappearance — or movement from storage — of the processing-focused Washington crop. Oregon saw stocks drop and disappearance increase.
COVID-19 restrictions last year caused a plunge in foodservice business and higher retail demand.
The Idaho Potato Commission since early in the pandemic worked with retailers to move potatoes originally intended for foodservice, which is about 60% of IPC’s market, to retail stores. The commission has run retail bin promotions, developed new types of in-store displays and provided storage and preparation tips to consumers.
President and CEO Frank Muir said the programs helped boost shipments, “and we have not let off the throttle in the current year. We are still pedal-to-the-metal in making sure we move this year’s crop.”
He expects Idaho potato disappearance to keep increasing from year-earlier levels.
Muir said the potato industry in Idaho is recovering more quickly than the U.S. as a whole in the fresh and processing segments. Anecdotally, reports from IPC personnel who travel the country indicate the foodservice sector is starting to improve.
In Washington, more than 90% of the crop is for processing into fries and other frozen products, which limited the opportunity to pursue increased retail demand for fresh potatoes as the pandemic unfolded, Potato Growers of Washington Executive Director Dale Lathim said.
Contracted acreage last year dropped by about 20%, he said. Potato processing for domestic and international markets also dropped substantially as production downtime affected Washington’s 13 processing plants.
Lathim said drive-thru and take-out delivery at quick-service restaurants helped the market for frozen potatoes improve, particularly in the U.S. That impact was lower in other countries, which used those modes of delivery less.
“Exports are rebounding, but they are rebounding slower than domestic sales,” he said. Washington and Oregon export a higher percentage of their crops than does Idaho, primarily due to port proximity.
Lathim said Washington potato volume is “very manageable” given the smaller crop and some promising demand.
“While things did pick up slightly, we haven’t gotten all the way back to pre-COVID levels,” he said. “We are very close but haven’t gotten all the way back.”
Production numbers can vary based on survey participation and timing, and changes in individual operations.
“We estimate production is down 10-15% from a year ago, based on reports and assessments received,” Oregon Potato Commission Executive Director Gary Roth said. The state a year ago saw reductions in contracted acres from 10-20% on average.
Last year’s reductions in Northwest processing acreage combined with recent improvement in demand from quick-service restaurants contribute to Northwest stocks staying near year-earlier levels, he said, and indicate 2020 predictions were fairly accurate. “The market has been performing as anticipated.”
April 21, 2021 at 03:15AM
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NW potato stocks steady despite COVID-19 disruptions | Idaho | capitalpress.com - Capital Press
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