BusinessSpud Sales: Canada’s Potato Sector Thriving

Spud Sales: Canada’s Potato Sector Thriving

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Potatoes accounted for approximately $2 billion in farm cash receipts in 2023, according to an extensive report released by Agriculture and Agri-Food Canada.

The value of potato and potato product exports saw an 8 per cent increase from the previous year, reaching over $3.6 billion in 2023/2024. Potatoes hold the title of the largest vegetable crop grown in Canada, accounting for 29 per cent of all vegetable receipts and 17 per cent of total horticultural receipts, according to the report.

In 2023, potato growers across Canada produced approximately 5.8 million metric tons of potatoes. The production is widespread, with contributions from coast to coast. Geographically, production is split as follows: 35 per cent in Atlantic Canada, 21 per cent in Central Canada, and 44 per cent in the Prairie Provinces and British Columbia. The leading provinces by production volume were Alberta (24 per cent), Manitoba (23 per cent), Prince Edward Island (20 per cent), New Brunswick (12 per cent), Quebec (10 per cent), and Ontario (7 per cent).

In terms of the destination for the crop, about 68 per cent of the total production in 2023 went to the processing sector, 21 per cent to the fresh/table market, and 11 per cent to the seed sector. Most processing potatoes are used for making products like French fries, chips, and other processed items.

Alberta, Manitoba, New Brunswick, and Prince Edward Island lead in French fry processing, while Ontario has the largest potato chip market. Many growers now utilize advanced storage facilities, ensuring high-quality potatoes meet retailer and processor standards.

Canada boasts approximately 150 registered seed potato varieties for commercial production, with Alberta (27 per cent), Prince Edward Island (21 per cent), Manitoba (16 per cent), Quebec (12 per cent), and New Brunswick (10 per cent) being the largest seed potato-producing provinces in 2023.

As a net exporter of potatoes and potato products, Canada relies heavily on the U.S. market for trade. In the 2023/2024 period, Canada exported $50 million in seed potatoes, $493 million in fresh potatoes, $2.7 billion in French fries, and $424 million in other processed potato exports to various countries.

During this time, the U.S. accounted for 96 per cent ($48 million) of seed potato exports, 93 per cent ($457 million) for fresh potatoes, and 91 per cent ($2.4 billion) for French fry exports. Canada also imported $456 million worth of potato and potato products from the U.S., constituting 85 per cent of total imports from all countries ($534 million). Of this imported amount, $440 million was attributed to processed potatoes, including $126 million for frozen French fries and $314 million for other processed varieties. The remaining $94 million consisted of fresh potatoes, with $80 million for table stock potatoes and $14 million for seed potatoes.

Globally, Canada ranks among the top 10 exporting countries for table stock and seed potatoes. In 2023, Canada placed fourth in table potato exports by value, totaling $580 million, and seventh in seed potato exports, valued at $53 million.

The report, titled “Potato Market Information Review 2023-2024,” was produced by the Crops and Horticulture Division, Horticulture Section of Agriculture and Agri-Food Canada. A PDF of the report is available here.

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