US Potato Exports Hit New Records In Both Value & Volume (expanded)

The value of all U.S. potato exports reached $1,755,544,515 for the recently completed July 2013 – June 2014 marketing year. This is a 7% increase over the previous record set in 2012/13. The volume of exports increased 5% to 1,643,618 metric tons (MT). On a fresh weight equivalent (FWE) basis, this translates to 70,698,171 hundredweight of potatoes exported out of the United States, a 7.5% increase.

United States Potato Board (USPB) International Marketing Committee Co-Chairman Carl Hoverson, from North Dakota, noted, “This record increase in potato exports represents 18% of U.S. production. While most Northern Plains potato growers do not export, this volume of potatoes leaving the U.S. market has a positive impact on all growers.”

The increase in exports was led by a 10% increase in the value of exports of frozen potato products, followed by a 6% increase in dehydrated potato exports, a 6% increase in the value of fresh potato exports and a 4% increase in seed potato exports. The only decline was a 4% drop in the value of potato chip exports. On a FWE basis, frozen potato products still account for 54% of total exports, followed by dehy at 27% and fresh potatoes at 14%. Frozen and dehy exports have grown as a percentage of total exports at the expense of potato chips over the past five years.

The value of total potato exports has grown 50% in the past five years with volume increasing by 34%. The top destination for U.S. potato exports remains Japan at $379 million, followed by Canada $322 million and Mexico at $235 million. Exports to Mexico grew by 18% in the past marketing year. Korea has assumed the number four spot from China, on a volume basis, with the Philippines experiencing the largest growth, at 39%, to reach $81 million.

USPB International Marketing Committee Co-Chair Marty Myers related how impressed he was with the USPB marketing and promotion programs he has assisted with in the foreign markets. “The USPB international representatives really understand their markets and needs of the customers,” he said. “They deliver programs meeting their needs, increasing demand for U.S. potatoes and products.”

USPB Chief Marketing Officer, John Toaspern forecasts, “World demand for potatoes and products will continue to grow at close to 10% per year in the future; however, the U.S. will face increasing competition from the EU and China. The EU is set to have a very large crop in 2014 with extremely low prices, while China enjoys duty free access in Southeast Asia and is seeing continued expansion in frozen processing. Then again, U.S. quality is still recognized and will result in increased export sales if prices remain competitive.”

For more information on the USPB as the nation’s potato marketing organization, positioned as the “catalyst for positive change,” and the central organizing force in implementing programs that will increase demand for potatoes, please visit www.uspotatoes.com. In an effort to enhance diversity of the Board, USDA encourages women, younger growers, minorities, and people with disabilities to seek positions on the board.