Economic crisis threatens 'potato boom'

Booming potato production in the developing world could falter as the global economic slowdown reduces investment, trade and potato farmers' access to credit, a new FAO report warned today.

The threat comes at a time when potatoes have become an important staple food and a lucrative cash crop in many developing countries. China is the world's biggest potato producer, and Bangladesh, India and the Islamic Republic of Iran are now among the world's leading potato consumers.

Drawing on the most recent FAO statistics, the reportNew light on a hidden treasure shows that the potato is the world's number one non-cereal food crop, with total production reaching a record 325 million tonnes in 2007. More than half of the global harvest was produced in developing countries.

However, the report says "dark clouds are gathering over prospects for the year ahead". The global economic slowdown threatens to reduce flows to developing countries of investment and development assistance, including the support to agriculture that has helped many countries strengthen their potato sectors.

Developed countries may be tempted to raise trade barriers, which already apply stiff tariffs on imported potato products, while the banking crisis will leave many farmers with no credit to invest in production in 2009.

"Urgently needed is a vigorous new agenda for potato research and development aimed at protecting countries' food security and providing new market opportunities for potato producers,"said NeBambi Lutaladio, coordinator of FAO's International Year of the Potato 2008 secretariat.