January 2019 - 46

Potato demand on the rise
Demand for
POTATOES USA
Blair Richardson
CEO
potatoes in both the
United States and
across the globe is
strong and outpacing
production. Based
on sales, production,
trade and other data
it is clear market
conditions have
changed for potatoes
over the past decade.
Sales of potatoes in
the U.S. are up 3.2
percent, while exports were up 6 percent
from 2014 to 2017.
Many may smile and comment that
we sell what we produce; however, that
naively ignores the underlying strength
in demand and the fact that we have
achieved reductions in waste throughout
the distribution system while consistently
producing more potatoes.
Recognition of this dynamic situation is
significant because too often the narrative in
the potato industry is about demand being
on a downward slope with no end in sight. I
have heard this since joining this industry, but
this is just not true. While retail sales of fresh
potatoes have been trending downward, this
decline has begun to flatten out.
This is countered by the fact that
increased demand for other potato products
at retail and foodservice, as well as food
manufacturing demand are surpassing the
decline in fresh sales. Based on increased
imports and rising prices to growers, at retail
and for processed products one can even
say that supply is lagging demand.
Another very important factor in
determining actual demand for potatoes
is increasing, is to look at the declines in
waste throughout the system, from the
farm level to the processing plants and at
retail and foodservice. Moreover, we have
addressed consumer concerns at home by
offering small and convenience-focused
packages. Waste has dropped significantly
for potatoes at the consumer level. This
means the same amount of harvested
potatoes is feeding more people -
or, perhaps, people may be eating more
potatoes than we have been told.
There are, however, trends and factors
in domestic and international markets
that the potato industry must be aware of
and respond to if we are going to maintain
this demand. Domestically, the biggest
factor is the continued movement by
consumers toward convenient food. This
has led to reduced purchases of scratch
ingredients, but increased purchases of
ready-to-eat foods and meal kits and more
food being eaten away from home or via
home delivery.
Other factors are the movement towards
plant-based diets, particularly at foodservice;
the continued adoption of specialized diets
such as ketogenic or gluten-free and the
desire for functional food that provides more
than just basic nourishment.
In the international markets the ongoing
trade fight between the U.S. and our
trading partners is beginning to show up
as a negative impact on exports. The 20
percent retaliatory tariff on frozen product
entering Mexico has resulted in a decline
of 21 percent in U.S. exports from June
through September. The more recently
imposed tariff on frozen product into
China led to a 16 percent decline in
September exports.
509-582-8900
With the implementation of the
Comprehensive and Progressive Agreement
for Trans-Pacific Partnership (CPTTP) in
2019, which includes Japan but not the U.S.,
we will face a real disadvantage on frozen
and dehy potatoes in our No. 1 market. It
is important the U.S. defends its existing
markets and constantly develops new
markets worldwide.
Fortunately, world trade in potatoes has
grown 23 percent over the past five years
and is forecast to continue this growth for
the foreseeable future. The 2018 potato crop
in the EU is down roughly 18 percent, which
creates a huge opportunity for the U.S.
Our industry must be flexible and willing
to evolve so that we can adjust to external
threats like trade disputes and take
advantage of the growth opportunities, be
they value added packs of convenient fresh
potatoes, expanding consumption of potato
chips, the expanding use of frozen fries in
new channels like Taco Bell, new breakfast
bowls at Wendy's or fresh potatoes to new
markets, such as Korea, Myanmar or Central
America.
This is a great time to be part of the
potato industry.
INDUSTRY NEWS
LEAVITT FARMS WINS MCCAIN
CHAMPION GROWER AWARD
When it came time to stand up during
the 2018 McCain Foods Champion
Grower judging, potato grower Leavitt
Farms stood out.
Leavitt Farms, based in Limestone, Maine,
won the award during the annual McCain
Grower Barbecue in August.
The award is based on scoring in three
categories; field direct delivery, winter
storage delivery and refrigerated storage.
Leavitt Farms finished with the highest
overall score to earn the crown.
Longtime owner Randy Leavitt said it was
a great honor to receive this award.
" I am proud of this legacy and we all work
hard to make the farm look good, be good
and do good every day, " Leavitt said. " It was
a great surprise this year. "
Leavitt Farms is the proud operator of
Do you need more DAMMER DIKERS?
www.dammerdiker.com
46
Spudman.com
Lockwood Manufacturing potato equipment.
Lockwood Manufacturing extended
congratulations to Leavitt Farms for their
dedication to the potato industry.
http://www.dammerdiker.com http://www.Spudman.com
January 2019

Table of Contents for the Digital Edition of January 2019
