SANFORD, Mich. (RFD News) — As planting season ramps up, potato growers are looking beyond the farm to help manage rising input costs.
National Potato Council Chief Operating Officer Michael Wenkel says expanding into overseas markets remains one of the best ways to help offset increasing expenses for growers:
“New markets are a critical part of what we try to do for the industry. Fortunately, we now have Mexico open for fresh potatoes to move into Mexico that’s generating about $135 million a year in additional sales of U.S. potatoes into Mexico. Beyond that, we’re continuing to try to get Japan open for fresh table stock, as well as just this last couple of weeks, we’ve seen South Korea open 11 additional states for fresh potatoes to move into there, including Wisconsin and several of the Midwestern states. Certainly, continuing to push for expanded markets is something that we see as vital to continuing to offset some of the production that’s here.”
Wenkel says strong global demand and production challenges overseas are helping increase interest in U.S. potatoes.
Growers are also watching ahead to this summer’s USMCA review, which many see as another opportunity to strengthen trade relationships. However, industry leaders say there are still concerns surrounding production issues, transportation and currency rates.
“Negotiations that are set to take place this year. As we look at production concerns across the country, there certainly appear to be, from the growers’ perspective, some areas that are of concern, and that includes the provisional aspects of British Columbia, as well as potential issues with currency rates, transportation, and different things that we hear from growers throughout the Midwest. We are seeking to get a better understanding of that by having the Trump administration look into doing a section 332 investigation, just to help us truly understand those potential impacts that are there, so that as we move into any need for changes, we have the facts versus what people are hearing on the street to help us make those decisions.”
Even with the U.S. Trade Representative’s investigation into Canadian potato practices, Canada recently secured an agreement with Mexico allowing exports of fresh potatoes, with shipments expected to begin this fall.
Both countries say the agreement will help strengthen trade ties ahead of the upcoming USMCA review.
Meanwhile, USDA is preparing another push to expand agricultural exports abroad.
The department is now accepting applications for an agribusiness trade mission to Melbourne, Australia. Led by USDA’s Foreign Agricultural Service, the trip aims to strengthen export opportunities in Australia, New Zealand and the Pacific region.
USDA says there is strong demand for American pork, beef, dairy products and other agricultural goods, calling the mission a key opportunity for producers.
The trade mission is scheduled for late August, and applications are due May 18.
