Canada is Sitting on a ‘Mountain’ of Potatoes
The Canadian spud market, unfortunately, proved that it cannot manage the extra potato volume domestically.
The total Canadian potato storage holdings on January 1, 2022, are presently at almost 4m tons, which is 20% above three-year average levels of 3.32m tons, according to the United Potato Growers of Canada (UPGC) recently released data.
“Eastern Canada is the biggest contributor as a result of the large crop dug in the four Eastern Provinces. Also compounding the stocks increase is an Embargo on PEI Potatoes preventing them from being shipped to the US since November 22nd, 2021”, UPGC compiled data shows.
Potato Storage Holdings Sees 50% Above Three-Year Average
UPGC’s analysis shows that all the Canadian provinces except Manitoba (affected by hot, dry weather) have increased in fresh potato stocks. New compiled data reveals that the fresh holdings in Canada on January 1, 2022, are 50% above three-year average levels with 970,250 tons intended for use in the table market.
“Eastern Canada, which produces a large portion of the fresh potatoes, leads with a 63% increase in stocks. Prince Edward Island (PEI) fresh stocks are almost double historical levels with an additional 200,000 tons in storage. The United States (US) closed their border (and that of Puerto Rico) to PEI Potatoes on November 22, 2021, creating a large backup in the supply chain,” according to UPGC’s stats.
Processing Capacity has Increased in Canada
The potato processing capacity has increased in Canada, and fryers are running hard to keep up with export demand.
“Holdings of potatoes destined for processing on January 1, 2022, are 2.52m tons which is 15% above three-year averages. In Eastern Canada, processors are in a much better place compared to the last two years which required large amounts of imports,” UPGC’s experts mentioned in their report.
December usage is up almost 40% compared to the previous year. Alberta has been running lighter given their reduced supply, and Manitoba will need to continue imports to supplement their needs throughout the year. Chip stocks are higher in Ontario and Quebec as well as NB and PEI.
PEI Seed Potatoes Went to the Processing Sector
The largest decline concerning the potato seed sector is in Prince Edward Island (PEI), where growers observed the restriction placed on their exports by the United States, and diverted some of their stocks to processing, rather than destroying them.
“Seed Inventory on January 1, 2022, is 500,000 tons which is 5% above three-year average levels. Ontario’s increased inventory indicates some newer entrants in the industry. Alberta shows an increase of 12% bringing stocks to one of their higher levels at 182,000 tons. Seed stocks are up in Quebec and NB by 15% and 14%. BC has a decline of 13%,” UPGC’s analysts concluded.
Recent Potatoes USA data compiled shows that Canada registered a 2021 production estimate of +18%, with the USA’s contraction of -1,6% and the EU4 with a mild growth of +1,3%.
