Opinion

End of Season Update from Canada’s Potato Harvest

Potato Starch
In 2021, Canada’s potato production has increased in comparison to the previous year but it the volume is highly imbalanced across different regions of Canada. Western Canada witnessed a severe drought in this season resulting in recorded high temperatures and reduced potato yields. On the other hand, Eastern and Atlantic regions reported large harvest and improved yields and usual harvest volumes. The french fry manufacturers are now increasing their prices by quoting a lack of supply of potatoes in Canada.

Potato harvest season is reaching its final stages in Canada. Canada and while areas in Western Canada are in short supply there is an ample supply in eastern Canada. Poorer than average potato yields in Western Canada are likely to impact potato production in the long term due to the nature of contracts in the industry. On contrary, Eastern provinces have recorded large yields due to ideal growing conditions this year while the western regions suffered from severe droughts. A reduced harvest has impacted the French fry manufacturers who have increased the prices due to limited potatoes.

Potatoes are grown in different regions of Canada across 141,157 hectares of land with more than 1,000 potato farms. Atlantic Canada accounts for 39.9% of the production with major potato farms across Prince Edward Island and New Brunswick. Western Canada has the second-highest share of 37.9% in potato production followed by Central Canada with a share of 22.2%. About 65% of the potatoes grown in Canada are processed frozen for French fries, potato chips, flakes purposes, and sometimes dried into potato starch. A share of 21% is for fresh table consumption and the remaining 14% for seeds. By October end, the majority of the potato producers are done with the harvesting process and ready to market their potatoes to retailers, traders, processing industries, and agents. In general, Canada has recorded an increase in potato production during this year but the volume is highly imbalanced across different regions with below-average potato yields in the western provinces due to warm temperatures.

Canada witnessed a severe drought in this season which has made the future for farmers very uncertain due to reduced harvest volumes. Western Canada in particular, recorded high temperatures, below-average rains and it is predicted that the situation will continue during the next few months. The drought has been detrimental to potato yields in many regions of the country. Even in areas like Manitoba where the growing process is irrigated, the increased temperatures stressed the canopy and prevented the potatoes from growing to optimum size. Farmers in New Brunswick have recorded a dramatic fall in the potato harvest by at least 30% to 35% below average yields. The dry conditions had a detrimental impact as the region relied solely on precipitation.



Despite a drought in Western Canada, the country’s potato production is expected to rise by 15.2% compared to the volumes of 2020. As per the North American Potato Market News (NAPM), 17,000 acreages of the area are dedicated to potato plantations. It is expected that strong yields from eastern provinces will make up for reduced yields in the West. Eastern provinces have recorded large yields due to nearly ideal growing conditions this year. The drought conditions in Western Canada could likely eat into potato supplies for the upcoming year.

Poorer than average potato yields in Western Canada have created contracting headaches and supply issues for the potato processing sector. The limited potato supplies have also impacted the availability of potatoes in the retail selling sector. Unlike other crops, production is aligned to contracts and the processor’s need assured volumes well ahead of the growing season. With the opening up of restaurants and fast-food restaurants, the demand for processed potatoes has come back to the pre lockdown levels. The french fry manufacturers in particular are increasing their prices by quoting a lack of supply. On the supply front of potato seeds, the supplies are expected to be plentiful in the eastern provinces, while supplies could run short in the West by the end of this year.

Sources

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