Canadian Potato Situation and Trends 2006-2007 (3 of 9)

Table Stock Potatoes

Based on the 2005-2006 marketing year, Canada's exports were 305,813 MT, down 3% from 2004-2005. The value of table stock potato shipments was C$121 million, up 33% from 2004-2005. Prices of 2005-2006 were 37% higher than to those of 2004-2005, and 16% more than the previous five-year average. This was mainly due to a production decline in Canada and the United States in 2005.

During 2005-2006, Canada's fresh exports to the U.S. were 274,022 MT, valued at C$110.9 million, up C$28.3 million from 2004-2005. The United States accounted for 91% of export value. Other important markets (C$ million) were Thailand (2.0), Trinidad-Tobago (1.72), Dominican Republic (1.54) Venezuela (1.53), and Barbados (1.22).

Canada imports U.S. fresh table potatoes mainly during May to July period with 64% coming from the state of Washington and California. These Imports from the U.S. increased by 7% in 2005-2006 at 192,268 MT, valued at C$93.4 million. Average prices were 34% higher than in the previous year.

Seed Potatoes

Seed export volume increased by 11% during the 2005-2006 crop year from 111,980 MT to 124,500 MT, and the value increased by 35% from C$29.5 to C$39.7 million. Exports to the U.S. accounted for C$27.5 million or 69% of Canada's exports. Other valued seed markets during the period (C$ million) include Mexico (5.3), Cuba (3.6), Venezuela (1.1) and Uruguay (0.8). Alberta exported 53,100 MT of seed potatoes followed by New Brunswick at 31,600 MT, Prince Edward Island at 13,900 MT, Saskatchewan at 11,300 MT, British Columbia at 10,800 MT and Manitoba at 2,900 MT. In 2005-2006, Canada exported seed potatoes to 18 countries compared to 20 the previous year. In the same year, Canadian imported 8,400 MT worth C$2.2 million of seed potatoes all from the U.S.

Processed Potatoes

During the 2005-2006 year, the Canadian French fry production experienced a 3% decline over the previous year (Table 9). During the same period, Canadian exports of frozen fries decreased by 4% in value compared to the previous marketing year, the second decrease in 15 years. The volume of exports increased by .35% from 966,731 MT to 970,104 MT. (Table 7)

A higher Canadian dollar has reduced the competitiveness of Canadian potato products in U.S. markets and encouraged fry processors to move a part of their processing capacity from Canada to the U.S. Canadian exports to the U.S. represent 78% of export volume, Japan 5%, Mexico 3.4%, Venezuela 1.8% and China 1.8%. In all, fries were shipped to more than 64 countries around the world. During 2005-2006, the relative importance of Canadian French fry exports to the United States compared to total exports decreased by 2% from 80% to 77%, based on the previous marketing year. Canada's exports to the U.S. accounted for about 57% of the total Canadian fry production. Canada imported C$58.5 million of frozen fries, an increase of 14% over 2004-2005. The U.S. accounted for 99.8% of these imports.

During 2005-2006, Canada also imported C$82 million of other potato products representing 20% less in value than the previous year, mostly potato chips (C$42.2 million).

It should be noted that Canada's processors are currently not contracting any genetically-engineered (GE) potatoes to comply with their customers' preferences.