Potatoes

US Frozen Potato Exports Fall 17% in 2H 2020, but Rebound Expected

LinkedIn Pinterest Tumblr

Potato exports from the United States continue to recover but remain behind previous year levels, reports Potatoes USA, the Denver, Colorado-based marketing organization that represents approximately 2,500 commercial potato growers across the country.

 Shipments abroad during the first six months of 2020 were behind the record levels set in 2019. However, exports for October, November, and December were far less distressed than they were in the July-September period.

Frozen potato exports were down by 17% from July-December, but were off by only down 6% in December. Exports to Potato USA target markets declined by 15% year to date, but by only 1% in December. Some of the biggest downturns recorded were in the Philippines (-60%) and in China (-34%). However, China charted a 55% increase in December. 

Central America also saw a strong recovery in December, up 19%, with the six-month total now down by 21%. Japan and Taiwan logged marginal declines of 9% and 3%, respectively. 

The biggest gains for the year have been in Korea, up by 4%, and Mexico, up 21%, with both reporting very strong growth in December. The increase in Mexico was led by the recovery of market share after retaliatory tariffs on US products were removed.

Deyhdrated Sector

Dehydrated potato product exports were down only by 4% for the July-December period, but December saw a larger decline of 7%. Supply issues in the US played a major role here. In addition, it is anticipated that the fire at the Oregon-Washington Potato Co. plant will further exacerbate this problem.

China and the Philippines once again showed significant declines of 61% and 28%, respectively. Japan, the third-largest market, was up by 6% for the year to date, but down by 19% in December.  Korea has had significant increases and was up by 90%. Mexico, the second-largest market for dehydrated spuds, edged up 1%. Exports to Canada, the largest market, fell by 4%.

Fresh Market

Fresh potato exports, made up of table-stock and chip-stock, were down by 3% for those six months, but exports to Potatoes USA target markets were up by 6%. Japan now allows US imports of chipping potatoes on a year-round basis instead of the previously restricted February-July window. This resulted in a skyrocketing growth rate of 415%, as exports have been occurring in the fall for the first time. 

Shipments to Korea have benefited from negotiated improvements in the import protocol for table-stock and are up by 58%. Taiwan has benefited from increased demand, with exports up by 22%.

One of the chip processors in Vietnam has begun regular imports of US chip-stock, adding to the 215% increase in that market.

The Philippines has suffered significantly from pandemic restrictions, and exports are down by 43%.

Mexico, the second largest market for fresh tubers, has remained steady with a 3% growth rate. Lastly, the largest market by far for US fresh potatoes, Canada, was down by 12% but recorded just a 1% decline in December.