In contrast to European colleagues, French fries potato growers in the United States (US) are having a good year. The earnings are well above the level of the previous 5 seasons. Both the harvest and the acreage write a small minus. What is the cause of the positive balance?
A North American analysis firm calculates monthly the 'returns index', which Russet Burbank growers make per 45 kilos (100 pounds). If we look at the chart of the 2017/2018 season, a special picture is visible. The price saw a significant rebound this fall, which will continue through the first month of winter.
Initially, the index started at the same level with the 2013/2014 season, before rising to the best result in 6 seasons. The level is now around $8 per £100 for Russet Burbank. That was $5 or less last season.
Main harvest light in the min
The most recent figures from the USDA Department of Agriculture put the main crop at 18,09 million tons of potatoes, a 1,9% decrease on the previous crop. The increase in acreage and yield of 2016 has thus been negated.
However, potato (fries) cultivation focuses strongly on the states of Idaho and Washington. The acreage here decreased by 4,6% and 2,4% respectively, while an increase of 2,4% is observed nationally by the Ministry of Agriculture. Both states account for 10,44 million tons of potatoes this harvest. Slightly less was harvested per hectare. Especially in Washington, where 4% less came from an acre.
Yield the stable factor
The development of the hectare yield and the total volume of the main harvest is special. The difference between the worst and best results in 7 years is only 3,17 tons per hectare. Compare that with Europe, where the numbers are flying in all directions. The total autumn harvest fluctuates between 16,2 million tons and 18,5 million tons. This fluctuation is mainly due to a fluctuating acreage. The latter bumps back and forth with a margin of almost 44.000 hectares.
The USDA estimates the total potato harvest in the US at 19,91 million tons, including spring and summer production, a difference of 0,6% from last year. In particular, more spring cultivation has taken place.
Export engine is running well
A good harvest says little about the financial yield. However, the American growers and industry can also be satisfied with the export engine. In September, trade rallied for a while, before coming back strongly in October. An increase of 8%, compared to 2016, was made with an export of 90.436 tons of chips. Sales in 12 months amount to a record of more than 1 million tons, plus 1,8%. Slightly more was also earned per tonne of product. As a result, the total export value also reached a record of $1,143 billion.
US serves growth markets
Japan and Mexico are eager to deduct French fries from the US. They absorb export losses elsewhere. Exports to Japan plus over 6%. Those to Mexico almost 10%. In November, the country even bought 42% more product. South Korea and China meanwhile write the biggest minuses; to China, the volume even fell by almost 30%.
The Philippines is the largest growth market in the world market, and the US can benefit from this. Exported volume increased by a quarter over 12 months. Indonesia, Guatemala, Taiwan and Malaysia also write growth with 2 decimal places before the decimal point. Exports to neighboring Canada reach almost 10% in the same period.