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PEI potato industry explores new export opportunities in Indonesia and the Philippines

An early December Canadian trade mission, with strong representation from PEI's (Prince Edward Island's) potato industry, explored expanding Asian market opportunities, aiming to diversify exports and reduce reliance on shipping into the United States. Krista Shaw, director of stakeholder relations for the PEI Potato Board, led the delegation of PEI's potato industry representatives to Indonesia and the Philippines as part of the Team Canada trade mission.

The mission marked the largest PEI delegation to ever participate in such a mission, reflecting the province's strategic push to expand international trade. The delegation's first stop was Jakarta, Indonesia, coinciding with the conclusion of a free trade agreement between Canada and Indonesia. "The timing was significant," Shaw said. "The agreement, which includes the gradual elimination of tariffs on Canadian potatoes, represents a major step forward for market access in the region."

Indonesia, with a population exceeding 275 million, is on track to become the world's 4th largest economy within the next decade. The country's demand for agricultural products is increasing, driven by its growing middle class and industrialization. PEI's potato industry is particularly interested in Indonesia's major potato chip manufacturers, including a soon-to-open PepsiCo facility.

The delegation participated in B2B matchmaking sessions in Jakarta, organized by Canadian trade commissioners. Shaw emphasized the importance of in-person meetings in Asian business culture. "Building relationships face-to-face is crucial," she said. A PEI grower already exports to Indonesia and maintains his relationships by visiting annually, demonstrating the effectiveness of this approach.

From Indonesia, the delegation traveled to Manila, the Philippines, a country with longstanding ties to PEI potatoes. The delegation reconnected with Filipino farmers and government officials who had visited PEI. Shaw recounted how PEI seed potatoes have transformed Filipino farming operations, increasing yields and improving crop quality.

In the Philippines, farmers typically grow multiple crops in rotation with potatoes, maximizing their limited land resources. Discussions are underway to conduct variety trials in the Philippines, exploring which PEI potato varieties could thrive in the country's climate. "We've been working with the Philippines' Bureau of Plant Health to secure an import permit for these trials," Shaw said.

The trade mission underscored the importance of diversifying PEI's potato export markets, especially given the uncertainty surrounding U.S. trade policies. "With Indonesia's economy projected to grow at a rapid pace and the Philippines' strong agricultural ties to Canada, these markets are essential for PEI," Shaw concluded.

Source: Island Farmer

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