Potato Grower

WWW.POTATOGROWER.COM 37 DEALING WITH DISRUPTION Potatoes USA By John Toaspern Chief Marketing Officer Thanks to the COVID-19 pandemic, both U.S. potato exports and imports were impacted by reductions in foodservice demand in the international and U.S. markets. Both U.S. potato exports and imports were impacted by reductions in foodservice demand in the international and U.S. markets. The value of U.S. potato exports for the July 2019 to June 2020 marketing year (MY20) was down 2.6 percent, and the fresh weight equivalent volume was down 2.2 percent from the previous year's record levels. U.S. exports started the marketing year very strong and were above MY19 levels through February, but the reduction in demand, caused by the global pandemic, led to the losses in exports from March through June. The volume of U.S. exports of frozen potato products was down 4 percent for the marketing year. The declines were relatively evenly dispersed across markets, but of note were declines of 27 percent to China, 17 percent to Vietnam, 13 percent to Central America, and 6 percent to the Philippines. On the positive side, exports to Mexico were up 12 percent due to the recovery from significant losses the previous year from the 20 percent retaliatory tariff. Exports to Taiwan (which managed to avoid any significant COVID-19 related restrictions) were up 7 percent, Thailand up 6 percent, and Japan up 0.2 percent. The volume of U.S. dehydrated potato exports managed to end the year up 1 percent. Significant declines of 25 percent to Thailand, 20 percent to the Philippines, 11 percent to Taiwan, and 24 percent to Central America were offset by a 31 percent increase to the EU, a 23 percent increase to northern Africa and the Middle East, and a 32 percent increase to South Korea. The volume of U.S. fresh potato exports dropped 4 percent for the marketing year due to a 5 percent decline to Canada, a 3 percent decline to Mexico, a 31 percent decline to Japan, and a 45 percent decline to Korea. Fresh exports to Canada are mainly for processing into either chips or fries, and volumes were up prior to March, but the decline in demand for fries in the U.S. and Canada resulted in that trade stopping for the remainder of the marketing year. The decline to Japan, which is only a chip- stock market, returned to normal levels after a record year created by shortages in Japan in 2018-19. Increases to several other markets helped make up for these declines, notably a 60 percent increase to the Philippines, a 34 percent increase to Taiwan, a 25 percent increase to Malaysia, and a 45 percent increase to Costa Rica. Fresh potato exports include table-stock and chip-stock, and potatoes destined for frozen processing in Canada. The value of U.S. potato imports for MY20 increased by 8 percent with the fresh weight equivalent volume increasing by 7 percent. This increase occurred despite a drop-off in the April to June period as demand from the foodservice sector dried up due to coronavirus restrictions. The largest increase was in dehydrated potato imports, which rose 24 percent, followed by fresh potato imports, which were up 10 percent. Imports of frozen potatoes only increased by 1 percent, as these products saw the largest declines due to COVID-19. Potato chip imports increased 7 percent, and seed potato imports were up less than 1 percent as orders were canceled when the U.S. processors reduced contracts and purchases of raw product in April and May. The outlook for exports in the coming year is mixed. Many countries in Asia began reopening in the early summer, and the product that got backed up when restaurants there closed was drawn down. It is expected that while exports for the beginning of the marketing year will be below year-ago levels, the reductions should not be as great as they were at the end of the previous marketing year. The biggest uncertainty is with the pace of recovery of the economies in the target markets. The other factor will be the volume and cost of the product coming out of the EU, where it appears there will be surpluses. U.S. potato trade impacted by coronavirus pandemic

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