Following the example of the United States, Canada's potato acreage is also being heavily cut. Fries potato growers have to give up because fewer contracts are available. This makes the decline even greater than in the US.
In 2019, Canada grew 146.500 hectares of potatoes (french fries, table potatoes and seed potatoes). Market insiders expect the area - mainly French fries - to decrease by 13.750 hectares. This brings the forecast for 2020 to around 132.750 hectares, or more than 9% fewer potatoes. In the US the reduction is 7% estimated.
Table potatoes and seed potatoes
Potato growers in all areas have had to settle for fewer contracts for chip potatoes. The table potatoes and seed potatoes segments are still uncertain. Due to the smaller acreage of potatoes for processing, seed potato growers are left with their product. They are also considering downsizing if no guarantees are given that their seed potatoes will have a destination in 2021. Insiders also fear that potato growers can grow more table potatoes, as a kind of safe destination.
The largest decrease in hectares is expected in the province of Alberta, with 4.500 hectares. A drop of 18%. In 2nd place is 'potato island' Prince Edward Island with 3.200 hectares fewer potatoes and New Brunswick in 3rd place with 2.700 hectares. These provinces are also experiencing the greatest decline in percentage terms.
Alberta, PEI and New Brunswick
The acreage in Alberta is being significantly reduced because the crisis is hitting hardest here in the French fry potato cultivation. Insiders think that chip producers here have taken back contracts worth 4.500 hectares. Seed potato growers are also expected to plant less this spring, because they are now left with large quantities of potatoes. Some growers focus on table potatoes. The chips sector is considered stable.
Contracts are also being cut on Prince Edward Island. The largest processor – Cavendish Farms – delivers 85% of the seed potatoes ordered to its growers. It is still uncertain what the table segment will do. Trade association United Potato Growers of Canada and the PEI Potato Board are aiming for a reduction of 10% to 20% in anticipation of a greater market supply. However, this advice is given very late in the season, which makes it questionable whether it is sufficiently followed. Planting takes place earlier than in other years.
Just like on Prince Edward Island, seed potato growers in New Brunswick are also expected to grow less seed potatoes. This mainly concerns chip varieties. Chip potato contracts in the provinces aim for 15% less volume in this area. Planting has been delayed here due to late snowfall this spring.
Old season lasts longer
Almost 90% of the area reduction is in the French fries segment. Alberta has been hit hardest due to its focus in this market. Insiders can say something about this with the greatest certainty, because the contracts are fixed. Changes in the table and seed potato market are more uncertain, because the market has less control over it. In the meantime, the 2019 harvest is being uploaded to growers with a delay, which means that the old season could last about 3 weeks longer.