While potato prices in the United have dropped due to a surplus, they are holding steady in Canada, a Dec. 4 newsletter from the United Potato Growers of Canada (UPGC) said. However, there have been recent reports of continued downward pressure on the Canadian market.
The UPGC estimates there were about 89,000 potato acres planted in Canada intended for the fresh sector, generating approximately 29.6 million potatoes available for fresh sales. There’s a continued trend of acreage shifting from red to yellow potato varieties, leading to improved yields and increased production despite acreage remaining stable.
“We continue to monitor surplus potatoes in the processing sector that could be dumped into the fresh sector, there have not yet been any significant reports of this type of movement however it is early in the marketing year,” UPGC said.
The newsletter noted there are large surpluses of potatoes in North America, especially Russets in the Pacific Northwest. Processors over-contracted acres in reaction to shortages over the past two years and have disposed of extra potatoes under contract, including in Alberta and Manitoba.
There’s continued expansion in the sector, in Idaho with Lamb Weston, Washington with Simplot, Oregon with Simplot and Kraft/Heinz, and McCain in Alberta. However, the earliest of these expansion will come online in spring 2024 in Idaho — not soon enough to take in much of this surplus, UPGC said.
There have been reports of hollow heart and rot in russets in Eastern Canada and Maine due to the abundant rainfall received throughout the growing season, and even up to harvest in some areas — there are also reports of low gravities. UPGC said growers tried to leave low-lying areas in the fields, but long-term storage problems remain. UPGC doesn’t expect a tight supply of processing potatoes in eastern Canada this year.
“North American processors may try to regain market share thanks to the additional supply available and the difficulties of the European harvest, as global demand continues unabated,” UPGC said.
Contract negotiations have begun in Washington and are very positive to date, UPGC noted.
For the seed market, most regions in Canada reported very good seed harvests. The seed regions seem to have avoided the heavy precipitation in the east and the very hot temperatures in the west, UPGC said.
“If processors end up reducing contracted acreage for next year as is being indicated, what will be the impact on the seed business – we have to make sure we keep seed growers in business, none of us can continue without them,” UPGC said.
Canadian certified seed acres decreased in all provinces in 2023 except for in Alberta, Manitoba, Newfoundland and Nova Scotia. Certified seed acreage fell from 57,353 acres to in 2022 to 56,272 in 2023, a total decrease across the country of just over 1000 acres.
“Although harvest in Canada, and North America in general, was good for seed this year, there may still be regional and varietal shortages as were seen in the 2022-23 season,” the newsletter noted.
As in other sectors, some costs have stabilized, such as fertilizer and fuel, but overall, the cost of growing potatoes is the highest it’s been in years, UPGC noted.
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