Despite a difficult potato harvest in Canada, in which thousands of hectares were lost, Stats Canada estimates the total yield is 4% higher in harvest 2019. However, if you look closely at these figures, you will find that this is not intended to be positive.
According to the official statistics agency Stats Canada, Canada's 2019 potato harvest amounts to 106,6 million cwt. This is equivalent to 4,8 million tons. Several insiders agree with this figure, which is 4% above the 2018 yield.
Multiple causes
A yield that is 4% greater, while 4.800 hectares is not cleared is. That sounds strange at first. The cause of this must be sought in several places. To start, Stats Canada has corrected all figures from the previous 3 years. This means that the previous harvest is estimated to be 43.590 tons lower than previously thought.
Several Canadian potato processors have also expanded production lines, which means that more potato raw materials are required. Cavendish Farms even opened a completely new factory in Lethbridge (Alberta). These ambitions required considerably more hectares of potatoes. The area in Alberta grew by almost 2.300 hectares. Ultimately, the yield in this province is 0,2% lower than in 2018, due to a lower hectare yield and frost damage.
Quality a challenge
Ultimately, 1.400 hectares of frozen potatoes were harvested in Alberta, but major questions must be raised about the quality. This applies to all areas where harvesting took place under poor conditions. The largest potato producing province (Prince Edward Island) actually saw fewer hectares lost due to frost. This province did experience extreme rainfall.
The provinces on the temperate east coast are seeing their yield almost 9% higher this year. The so-called 'prairie provinces' (Alberta, Manitoba and Quebec) together produce 1,4% less than last year. In Manitoba the situation is similar to Alberta. The growers planted almost 2.400 hectares more here, but ultimately 5.200 hectares were lost due to frost. The lots that have been cleared are experiencing quality problems. The total harvest is 3% lower.
How do processors solve it?
The storage life of the potatoes is now the next point of concern for that sector. It is currently too early to judge this. On reference date December 1, the fries and chips potato stock was 0,5% higher than last year, but the table potato stores were almost 15% fuller; Storage problems occur with chip potatoes, especially in Manitoba and Alberta.
Canadian potato processors simply do not have enough inventory to work with. The larger potato harvest in the coastal provinces is not sufficient to fill the gap in the prairie provinces. The insiders estimate that these factories will need almost 230.000 additional tons, at a capacity utilization of 65%. If they want to make full use of their new chip lines, they will need 363.000 tons of product.
Those potatoes are simply not available. Import from the United States certainly will take place, but there too the stock of potatoes is not sufficient due to losses and weather-related problems. An alternative is to buy additional table potatoes where possible, but this is not enough to close the gap.