As a result of the corona crisis, Canada is also struggling with a large stock of potatoes intended for the processing industry. Moreover, potato processors in the country are shrinking considerably in the contracted area.
The total inventory of French fries potatoes in Canada on May 1 was 4,2% above the 3-year average. This is evident from the latest figures from the United Potato Growers of Canada (UPGC). It is the direct result of the corona outbreak, which has caused French fries sales to stagnate, including through fast food chains.
Canada still has a total of 22,9 million cwt of French fries potatoes in storage. Converted, that is just over 1 million tons. In April, almost 34% fewer potatoes were processed than in the same month last year.
Alberta hit hardest
Most chip potatoes are in storage in the province of Alberta, where the stock is 18,4% higher than the 3-year average. The stock is also significantly higher in Ontario, at 11,4%. Only in Manitoba is the stock smaller than in previous years (-13,3%), but this is due to the disappointing harvest in the province.
The Potato Growers of Alberta estimate there are about $60 to $70 million worth of processing potatoes left in storage. The province's three major potato processors, Cavendish Farms, McCain Foods and Lamb Weston, are said to have reduced contracted acreage by 20 to 25%.
Area shrinking
The UPCG's call at the end of April for growers to reduce acreage was responded to. The organization expected that processors would contract 15 to 30% fewer French fries potatoes. Partly thanks to the later planting season, this could still be anticipated. Canadian growers are expected to do so this year 9% fewer potatoes cultivation, with the largest decline in Alberta.