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U.S. and Canada potato sector faces trade pressure and retail shift

The potato industry meeting in Dallas, Texas, took place amid political uncertainty, including tariffs, international trade tensions, and migrant labour issues. The Trump administration provided US$40 billion in farm support payments last year, although the program was not specific to potatoes.

The combined United States and Canadian potato crop reached 24.4 million tons in 2025, slightly below 2024. Supplies of processed potatoes remain available. Industry representatives raised concerns about increased competition in frozen fry and chip exports, particularly from China and India, where shipments have doubled and increased by one third, respectively, over the past year. Trade resistance and tariff measures are affecting demand for United States products in the Asia Pacific region, while exports to the European Union are declining.

Processing potatoes in North America are largely marketed under contract. Contract volumes and planted area are expected to decrease in 2026. The fresh market remains more flexible, with spot prices falling below production costs, increasing affordability at the retail level.

Data from the United Potato Growers of America indicate that potatoes remain the lowest-cost vegetable in the United States. One US$1 purchases 1.1 kilograms of russet potatoes, 765 grams of red potatoes, or 720 grams of yellow potatoes. Green cabbage provides comparable value, while mushrooms offer less volume per dollar.

Fresh demand through retail has strengthened. Potatoes USA reported that 51 per cent of potato sales now occur through retail channels, compared with 42 per cent in 2019. Foodservice accounts for 49 per cent, down from 58 per cent in 2019. Updated dietary guidance from the United States Health Department places potatoes within the healthy vegetable category, although fries and chips may be scrutinised under ultra-processed food discussions.

Varietal transitions were also discussed. Debate around Russet Burbank, first selected in 1873 and still dominant in North America, reflected similar discussions elsewhere on the gradual replacement of older varieties. Potatoes USA outlined a coordinated approach to variety development aligned with consumer demand and competitiveness against European varieties.

Weather remains a primary production factor. Growing conditions in the United States were favourable in 2025, except for drought in eastern Canada. However, reduced snowfall in the north-west United States may affect irrigation supply for 2026. A potential El NiƱo shift could increase temperature risk for the upcoming season.

Source: potatoPRO

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