As planting season progresses in the United States, potato growers are increasingly focused on export market expansion to help manage rising production costs.
According to Michael Wenkel of the National Potato Council, expanded market access continues to play a role in supporting the industry.
"New markets are a critical part of what we try to do for the industry. Fortunately, we now have Mexico open for fresh potatoes to move into Mexico, which is generating about $135 million a year in additional sales of U.S. potatoes into Mexico. Beyond that, we're continuing to try to get Japan open for fresh table stock, as well as just this last couple of weeks, we've seen South Korea open 11 additional states for fresh potatoes to move into there, including Wisconsin and several of the Midwestern states."
Wenkel added that demand for U.S. potatoes has increased due to production issues in some overseas markets.
The sector is also monitoring the upcoming review of the United States-Mexico-Canada Agreement (USMCA), which growers view as an opportunity to strengthen trade relationships.
According to Wenkel, growers continue to monitor concerns related to production conditions, transportation, and currency rates, including issues linked to British Columbia.
"We are seeking to get a better understanding of that by having the Trump administration look into doing a Section 332 investigation, just to help us truly understand those potential impacts that are there, so that as we move into any need for changes, we have the facts versus what people are hearing on the street to help us make those decisions."
At the same time, Canada recently reached an agreement with Mexico allowing exports of fresh potatoes, with shipments expected to begin this fall.
The United States Department of Agriculture (USDA) is also preparing an agribusiness trade mission to Melbourne, led by the Foreign Agricultural Service, to expand export opportunities in Australia, New Zealand, and the Pacific region.
The USDA said the mission will focus on export opportunities for U.S. agricultural products, with applications due by May 18 and the trade mission scheduled for late August.
Source: RFDTV
