Canadian potato growers have harvested a record amount of potatoes in 2023. This is clearly reflected in the stock figures. There is 10% more product in the storage sheds compared to last year. In some states, the stock is even almost half as high as last season. All those extra potatoes put a heavy burden on production for 2024.
At the end of January, the Canadian statistics agency published the final figures for the 2023 harvest year. These amount to 6,5 million tons of potatoes, which is a record. In 2022, 6,2 million tons were harvested. The potatoes come from 155.956 hectares. This means that more than 4.000 hectares have not been cleared. Partly because of the weather conditions. Plots have also not been harvested due to the lack of demand.
Stock up to 50% higher
On reference date March 1, there were 3,2 million tons of consumption and seed potatoes in stock, according to figures from the sector itself. That is 10% more than was the case in 2023. On the east coast, inventories are smaller, while in the west they are significantly higher. In Alberta, the stock is almost half higher than in 2023. Looking at French fries potatoes alone, the stock is one fifth higher than in 2023. Almost all of those extra potatoes can be found in the provinces of Alberta and Manitoba.
At 1,96 million tons, the quantity of chip potatoes is 345.000 tons higher than last year. Potato processors do their best to process as many potatoes as possible, but that is not easy. In one month, 340.000 tons of potatoes were processed, which is 3% less than a year earlier.
Long season
While the Americans purchased a considerable volume of potatoes and potato products last year, this season is very different due to their own good harvest. If the current pace is maintained by the chip producers, the old processing season will run until the beginning of September.
This situation has a major effect on potato production before 2024. Potato growers in the prairie states have concluded their contract negotiations with the three major potato processors. This does not mean that the price is final. It will probably decrease slightly, despite growers' efforts to keep it stable. The volume under contract decreases by 10% or more. That has everything to do with the large old stock.
Hoping for export to the EU
Canada and the US compete with each other in both the chip market and the table potato market. Canada also sees opportunities to sell fries to other destinations, such as Europe. This is what Victoria Stamper, president of the Canadian Potato Growers Organization, says. Due to a shortage of potatoes in Northwestern Europe, Canada hopes to benefit from additional demand for fries. She also expects fewer exports from Europe to North America.
On both sides of the border, a small proportion of potatoes are probably sold as animal feed or simply destroyed. As a raw material for biodigesters, this is not an option for North America. Growers in the US are also seeing a decline in acreage and contract prices are under pressure.