Alberta's potato sector is entering 2026 under pressure from rising input costs, increased competition, and ongoing trade developments affecting export markets.
Input costs have increased, linked to disruptions in global energy flows. Terence Hochstein, executive director for the Potato Growers of Alberta, said: "The war itself is not helping our inputs right now. Everybody was saying last fall, we were at $800 (per tonne) nitrogen. Now it's $1,200, and the other costs continue to grow. That is out of our control."
Global competition is also increasing, with India and China expanding exports.
"It wasn't that many years ago that our processors, some of our experts, went into India and China. They wanted to learn how to grow potatoes in order to feed their own people. That wasn't that long ago. Now, India and China are some of the largest exporters there is," said Hochstein.
"They're gradually getting a bigger and bigger foothold on the North American market. India, last year alone, increased their exports into North America. Although it was a small amount, it was 353 per cent year over year. China is not that far behind."
Canada has secured an agreement with Mexico allowing exports of fresh potatoes, with shipments expected from fall 2026.
"Alberta has committed to working with one of our fresh packers here now to initiate the initial audit. We'll bring those people from Mexico's national service for agri-food health, safety, and quality (SENASICA) up to Alberta. They'll see some fields, they'll see a packing plant, and then open that up. After that, it would be up to the fresh packers to decide whether Mexico is a market that they want to initiate," said Stacey Bajema, government relations and policy director for PGA.
The United States remains the main market, despite a USTR investigation into Canadian potato subsidies.
"Bring it on, because I'm not sure what subsidies they're talking about. So we'll see how that comes out in the end, and we'll continue to have these discussions," said Bajema.
"Above anything, that U.S. market is our number-one concern. That's what we need to make sure people know. Market diversification is one thing, but when you're dealing with perishable products, we have to keep that market with the U.S. secure."
On funding, Agriculture and Agri-Food Canada is reducing staff by approximately 665 positions over three years. At the provincial level, Results Driven Agriculture Research is funded at US$41.5 million, irrigation projects at US$60.7 million, and the Growing Greenhouses program at US$10 million.
"We're going to keep monitoring on the CFIA side. The way things are now is they eliminated a lot of that management side, so we have a lot more streamlining," said Bajema.
Source: AlbertaFarmer
