Source: Potatoes USA
U.S. potato exports have faced a great deal of adversity in the current marketing year (July 2020 to June 2021). Demand for frozen potato products declined precipitously in the spring of 2020, and this lower level of demand carried over through the first quarter of the marketing year (July to September 2020). As restrictions eased and the markets adjusted, demand began to return in the fall, but then shipping issues began to limit the ability of U.S. exporters to meet this demand. The lack of containers, port congestion, delayed and canceled shipments, and double costs have increased in 2021. Despite the return of demand, this has limited exports and resulted in shortages of frozen, dehydrated, and fresh potatoes in many markets. Importers have begun to ration the limited supplies, prioritizing large chains and established accounts.
U.S. exports of frozen potato products for July 2020 to March 2021 were down 10 percent from the same period the previous year. However, they were up 13 percent in March 2021. The strongest market has been Mexico, up 51 percent for the marketing year-to-date (YTD). Taiwan and South Korea are also positive for the marketing year, but both showed declines in March due to shipping issues. Japan, the largest market, was doing well for the first six months, but problems with shipping and renewed restrictions have resulted in a 13 percent decline YTD and a 22 percent decline in March. Exports to China have been impacted by the testing of imported frozen products for COVID-19, retaliatory tariffs, and increased domestic production. They are off by 39 percent for the YTD.
U.S. exports of dehydrated potatoes are down only 3 percent for the YTD period and are up 19 percent in March. Exports to Japan have remained strong, up 11 percent, while South Korea has continued to grow and is up 50% YTD. All other markets in Asia are down for the year, leading to a 6% decline to the region overall. Mexico is again positive with exports up 3 percent.
U.S. exports of fresh potatoes (chipping and table-stock) are even for the marketing year, but up 32 percentfor March. Mexico has again been a big factor with exports up by 6 percent YTD and by 31 percent in March. While exports to the largest fresh market, Canada, are down 12 percent YTD, they were up 39 percent in March. Fresh exports to Asia have been very strong, up 17 percent YTD and 25 percent in March. Taiwan, the largest market in the region, is up 26 percent, while Japan is up 81 percent now that the U.S. has year-round access. Korea continues to grow as well and is up 38 percent, while Vietnam is up 210 percent, but there are indications that due to the tariff differential, the chippers there may not repeat this level of business in 2021.
*Note: These figures are compiled by IRI. 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.