Feb 20, 2020US potato exports showed strong growth during late 2019
Exports of U.S. potatoes and products show strong growth through the first six months of the July 2019-June 2020 marketing year.
Exports of frozen potato products are up 11% to 551,338 metric tons valued at $643 million. Dehydrated potato exports are up 10% to 94,608 MT valued at $209 million while fresh potato exports, for direct consumption as well as processing, are up 9% to 270,865 MT valued at $132 million.
The growth in frozen exports was led by a 19% increase to the second-largest market,: Mexico. Much of this growth has to do with the removal of the retaliatory 20% tariff imposed in 2018 and removed in June 2019.
The continued growth of 3% in exports to Japan, the largest market, is very important to the overall figures. There has also been very strong growth to the Philippines at 32%, Thailand at 25%, Vietnam at 18% and Central America at 11%. The growth in exports to Vietnam faces future hurdles as the EU is in the process of ratifying a free trade agreement with Vietnam, which will eliminate the 13% tariff applied to the U.S. and EU products.
U.S. exports of dehydrated potatoes benefited from steady growth to most markets, with increases of 16% to the largest market, Japan, and 7% to Mexico leading the way. A decline in exports of 12% to Malaysia is of concern.
Fresh potato exports for processing into fries (mainly in Canada) and potato chips in Asia, as well as table-stock use in some markets, had more uneven growth. Exports to the second-largest market, Mexico, were down 7% while exports to Canada, the largest market, were up 21%. Tight supplies and strong demand in the U.S. could reduce the amounts going to Canada, as seen by the 5% decline for December.
There was strong growth in exports to Malaysia at 48%, the Philippines at 89%, Taiwan at 18% and, Thailand at 33%. But exports to Korea saw a 55% decline as domestic production there rebounded from the previous year, while Central America, as a whole, showed a 4% drop.
Potatoes USA accepts no liability for the content of these reports, or for the consequences of any actions taken on the basis of any information contained herein.
— Potatoes USA is the marketing organization for the 2,500 commercial potato growers operating in the United States, although the organization does not sell potatoes directly. Potatoes USA promotes five main potato products: fresh table-stock potatoes, fresh chipping potatoes, seed potatoes, frozen potato products and dehydrated potato products.