b'MARKET NEWSRising Production Costs Weigh on Potato MarketTight supply spells good news for potato markets, but rising production costs limit upside.BY: ASHLEY ROBINSONFOLLOWING PANDEMIC setbackshaving expanded with new plants comingCanada has 20.08 and trade restrictions, markets for theonline. million CWT of Canadian potato industry are lookingThe processors are absolutely fearful ofpotatoes in storage as positive. The upside though is temperedever getting a surplus of potatoes. Becauseof June 1. That is 17% as production costs have increasedif we do, prices are going to go down, theymore in storage than making prices not look as lucrative. have a hard time getting it back. Its just Demand continues to be strong. Weugly and so theyre doing everything theythe three-year average.have the opportunity for export into thecan to try to keep tight supplies going for U.S. with their tight supply situation.as long as they can, he said.Processors still seem to be on boardIn Canada, Stamper says growers didDemand continues to bewith contracts. So overall, the feelingsee an increase in processing contractstrong. We have the Im getting is positive, Victoria Stamper,prices. Looking at acreage across theopportunity for export into general manager of the United Potatocountry, she has generally heard its flatthe U.S. with their tight supply Growers of Canada (UPGC), says inthis year. Acreage is expected to be slightlysituation. Processors still seem to be a phone interview. People are stilldown in Quebec and Prince Edward shipping, and the demand is still strong. Island, while Alberta is seeing a jump. on board with contracts. So overall, the Stamper does note shipping issues areThe latest potato storage holdings fromfeeling Im getting is positive. holding back the market slightly. With fuelStatistics Canada for June 1 show that VICTORIA STAMPERcosts on the rise, shipping from east tothe eastern Canadian provinces have west isnt feasible. The supply constraintsmore spuds on hand then their western affecting global shipping are also reducingcounterparts. Western Canada hasinternational export prospects. The late planting season and delayed During the Crop Transition Conferencegrowth may give more time to deplete31% less potatoesin Bloomington, Minn. on June 10, 2022,these additional stocks. The additionalin storage than theDale Lathim, executive director of thethree hundred million is doable giventhree-year average.Potato Growers of Washington, Inc. notedgood demand and both fryers and potato growers across North Americafresh packers are currently making received a 20 per cent increase onarrangements to deliver later into the processing contracts this year. season, a report from UPGC said, adding Twenty per cent sounds like a lot,figures are close to spring 2020.right? Its not all that much with costsThere are higher stocks of fresh going up what they are, he said. Wepotatoes in the east with much higher-accepted that 20 per cent because at thatthan-average numbers in New Brunswick. time, our costs were projected to be upProcessing stocks nationally are right onEastern Canada has about 18 per cent overall. Today, theyrethree-year averages, however most of that61% more potatoes in up about 22 to 23 per cent. So still 20 persupply is in the east. storage than the cents not bad, could be worse, but its notTheres an increase in seed stocks, like were gaining anything on that. which wasnt unexpected due to P.E.I. seedthree-year average.Overall, he said acreage and contractexports still being blocked. The report prices are up in 2022 compared to 2021.noted how the wet conditions in Manitoba But Lathim noted they arent as highdelaying planting has increased seed as they were back in 2019 before thestocks in the province. A later spring acrossVisit spudsmart.com/category/business/markets-pandemic hit. This is happening despitethe country has pushed up seed stocksand-pricing/ for regular potato market updates.processing capacity across North Americafrom where they usually would be.SPUDSMART.COM Summer 202247'