Canadian potato processors are contracting more chips potatoes this year. In addition to rising global and domestic demand, processing is also increasing due to the construction of some new production lines. The growing season has meanwhile got off to a mixed start.
“Both JR Simplot and McCain Foods have increased their share of contract potatoes in the Canadian province of Manitoba,” said Dan Sawatzky, president of the province's potato growers' association. Since both processors need more potatoes, contract prices are also increasing. Both domestic demand and the global market for potato products are increasing, which is given as a reason for the production increases.
New growers
Also in 2019 a larger area expected. Simplot announced in February that it would expand their factory in Portage la Prairie with a new production line. It should be operational in December 2019. According to Sawatzky, the growth ambition not only ensures that existing growers expand their acreage, but there are also companies that start potato cultivation; although he notes that there are also arable farmers who stop.
In the province of Alberta, where potato processor Cavendish Farms is active, the acreage is also expanding this year. The chip manufacturer is building a new factory in Lethbridge. This will start in the autumn of 2019 with the receipt of potatoes. To get growers excited, contract prices in the province have increased 4% this year.
Though winter
Canada had a long winter this year and also experienced floods in the spring. In Manitoba, the potatoes are normally available at the beginning of May. Sawatzky estimates that planting has been delayed by several days. Conditions are currently dry, but frost is not out of the ground everywhere.
In Alberta, where the harvest was very poor last year after a warm summer, work is lagging further behind. Local flooding ensures that both summer grain and potatoes cannot get into the ground in time.
Increasing revenues
The area of chip potatoes in Canada has been very stable since 2014. Before that it fell almost every year. In 2017 the area was 140.000 hectares; 10 years earlier that was more than 160.000 hectares. The yields per hectare will continue to increase, so that more production can be achieved with the same surface area. There is an increase in production per hectare almost every year.