W26: Potato Update

In W26 in the potato landscape, in the United States, Idaho officials are working to promote market access for fresh United States (US) potatoes in Japan. Representatives from the State Department of Agriculture and the Idaho Potato Commission traveled to Japan from June 5 to 8, partnering with 11 state departments, 40 agribusinesses, and farm organizations. Japan is Idaho's fifth-largest trading partner and fourth-largest market for US. food and agricultural products. The potato industry on Prince Edward Island (PEI) and in North America is based on current holdings and planting projections. The general manager of the PEI Potato Board's early projections indicate that PEI's acreage will be similar or slightly stronger in 2023 than in 2022 due to tight potato holdings across North America and increased demands for more production.

Ukraine's potatoes saw an 87% YoY increase in price due to supply shortages. The market experts believe this increase is due to extreme weather conditions and increased competition from processors. Ireland plans to distribute potatoes to 10 thousand vulnerable Ukrainian farms. Potato prices in Poland have increased by 31% since June 14, 2023, reaching USD 0.98/kg (PLN 4/kg). Industry representatives predict high prices due to delayed planting and difficult harvesting. Young potatoes stood at USD 0.66/kg (PLN 2.70/kg) on the Lublin Wholesale Market. European potato processors are encountering difficulties obtaining materials due to limited supply and high prices. The Mintec Benchmark Prices for Processing Potatoes EXW Netherlands have witnessed a substantial increase of 202% YoY. Market sources anticipate extended summer shutdowns and delayed harvests.

Morocco's organized potato production structure depends on seed imports, with 60 thousand mt imported in 2022/23. Morocco spent over USD 40 million on seed potato imports and experienced a severe drought in 2022, leading to increased imports. Seed potatoes are imported from the Netherlands, the United Kingdom, Denmark, and France. The Finance Minister in Nepal imposed a value-added tax on onion and potatoes as a protectionism measure to boost domestic agricultural yield and discourage imports of agro products. Potato farmers in Kenya are rejoicing over a newly introduced high-yielding variety that is in high demand among fast-food restaurants. The Potato Consortium provided training to introduce this new variety, which comes with contractual farming arrangements, establishing a direct link with the market and minimizing post-harvest losses. This versatile variety is suitable for making chips, crepes, and for direct consumption, yielding 16 tons per acre. The budget for 2023/24 includes a 13.5% VAT, 1.5% income tax, and 9% agriculture service charge. The Finance Minister warns consumers to be alert to unfair practices in the market. Lastly, Austria's AMA evaluation shows a 4% nationwide decrease in potato-growing areas in 2023, with conventional potatoes growing at 15.3 thousand hectares (ha) and organic potatoes at 3.3 thousand ha.