Americans consumed fewer potatoes in the 2020/21 season than the year before. This is apparent from a study by Potatoes USA. How big was the impact of the corona crisis on potato sales?
Trade association Potatoes USA conducts an annual sales and usage survey. The recent analysis shows that US potato use fell by 2020% between July 2021 and June 6. This is a direct consequence of sales to the foodservice channel, which fell by 8%.
Turnover in frozen fries in the foodservice market fell less sharply, namely by 4%. This is because the fast food sector recovered relatively quickly. Sales of fresh table potatoes took the biggest hit, falling by 11%, as restaurants suffered from corona restrictions and later staff shortages.
Retail sales are down, but remain strong
Retail potato sales remained extremely strong, but could not cover the decline in foodservice. Retail sales did decline slightly compared to 2019-2020. This is a decrease of less than 1%. This decline gives a somewhat distorted picture, because a huge sales peak occurred at the end of the previous sales season. That was the start of the corona crisis that was accompanied by hoarding behavior.
Sales of frozen and chilled potato products via retailers in particular increased sharply (5%) during the corona year. But across the board, chip sales fell by 19%. Less sales through the catering industry and more through retail means fewer large quantities and more small packaging. In other words, a decrease in volume.
Import and export are increasing
The lower consumption was accompanied by tight domestic supply. However, this was offset by an increase in imports of 12%. The Americans also managed to increase potato exports by 4% despite the uncertainties on international markets and logistical challenges. Exports of table potatoes increased by 9%, chips by 10% and frozen fries by 2%. Only starch exports fell by 4%.
Of all potatoes grown in the US in 2020/21, 40% were used for chips and other frozen products. Table potatoes had a 25% share. The destination chips and starch accounted for a share of 23% and 7%. Starch production suffered from a tight supply of raw materials and staffing problems in factories.