A good demand for chips potatoes will ensure that the area of consumption potatoes in the United States will increase slightly before 2023. There is clearly more demand from processors, especially in the potato states of Idaho and Washington. Nevertheless, the cultivation area remains one of the smallest ever.
In 2022, the potato area will shrink to 365.000 hectares. Never before in recent history have so few potatoes been grown. Insiders expect this to change this year. An increase of 2,4% is estimated. That is good for 373.500 hectares. The idea is that more potatoes are going into the ground, especially in Idaho and Washington.
Potato toppers
With 123.000 and 64.750 hectares, these two states are the absolute potato toppers in the US. In percentage terms, states such as Texas, California and Nebraska show greater growth, but the area there is much smaller. An increase of 3% in the most important states will make much more impact.
An increase of almost 9.000 hectares can certainly be called significant, but if you look at the longer term, this is not too bad. If it comes to fruition, the US will grow its fourth smallest acreage in thirteen years this year. Only in 2020 and 2022 fewer potatoes were grown.
Late start in Idaho
The largest potato state, Idaho, received relatively high rainfall last winter, which replenished moisture reserves. Yet reservoirs remain a quarter less filled than average. Restrictions on water use are therefore likely this growing season. In early April, several inches of snow fell in eastern Idaho, causing the planting of the early varieties to be about two weeks behind schedule. The cold weather can have an impact on yields.
The table potato market is showing record high prices this year. Yet insiders think that the area will not expand much. Buyers of table and flake potatoes are trying to contract more. It is difficult to determine what happens in French fry potato cultivation. Negotiations between the three factories and growers are at a standstill. What also has an inhibiting effect is the availability of good quality seed potatoes. Growers are forced to choose a lower class, cut more, plant more widely or farm-saved seed use.
More early potatoes
The situation is similar in Washington. There too, the chip factories are trying to contract more hectares of potatoes. Planting took place under good conditions in the most important growing area, the Columbia Basin, from the beginning of March. Due to the shortage on the open market, growers have tried to plant as many early potatoes as possible. Low temperatures and snowfall ensure that initial development is slow. The weather in May and June must ultimately determine when the new harvest will appear.
The US Department of Agriculture (USDA) will not release its first figures for this year's potato acreage until the end of June. Insiders agree that the French fry industry in particular is driving the cultivation. This makes sense given the demand and production shortage seen last year. Depending on the processor and growing region, growers are still negotiating prices, which they believe do not include sufficient premium to cover the risks. In 2022, a cold and late spring, followed by a hot summer, resulted in lower yields.
Table potatoes stable
The open table potato market for Russet varieties is booming in the US and is at a record high. Prices have risen up to 80% above last year. Insiders therefore think that this area will only increase slightly. Mainly due to a lack of water, a shortage of seed potatoes and higher cultivation costs. The potato area for the chips industry also remains stable.