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12-09-2019 08:47 AM - edited 12-09-2019 08:49 AM
by Ashley Robinson, Bloomberg News
Potato processors are rushing to buy supplies and ship them across North America in order to keep French fries on the menu after cold, wet weather damaged crops in key producers in the U.S. and Canada.
Cool conditions started to hit growing regions in October, lashing potatoes with frost. Farmers in Alberta and Idaho were able to dig up some damaged crops for storage. But growers in Manitoba, North Dakota and Minnesota received snow and rain, forcing them to abandon some supplies in fields.
As the wild weather hurt crops, an increase in fry-processing capacity in Canada has boosted demand. The combination will lead to tight supplies, and it’s likely that potato prices could climb this year across North America, Stephen Nicholson, a senior grains and oilseeds analyst at Rabobank, said in a phone interview. International costs may also rise as the U.S. won’t be able to export as much.
“French fry demand has just been outstanding lately, and so supplies can’t meet the demand,” Travis Blacker, industry-relations director with the Idaho Potato Commission, said in a phone interview.
The United Potato Growers of Canada estimates about 12,000 Manitoba acres (about 4,900 hectares), or 18% of the province’s planted area, were left unharvested -- equal to what was abandoned for all of Canada last season. About 6.5% of Alberta’s potatoes are estimated to be frost damaged. Manitoba is the country’s second-largest grower, followed by Alberta. Prince Edward Island is No. 1. The government will issue estimates for the nation’s crop on Dec. 6.
The U.S. Department of Agriculture forecasts domestic output will drop 6.1% this year to the lowest since 2010, the agency said in a Nov. 8 report. In Idaho, the top producer, output is forecast to fall 5.5%.
Part of the problem for processors is the crop damage means potatoes are coming in smaller. French-fry makers usually favor longer spuds.
In Canada, Cavendish Farms recently opened a new processing plant in Lethbridge, Alberta. Thanks to a better harvest on the country’s East Coast, the company isn’t expecting any customer shortages at this time, Mary Keith, a spokeswoman, said by email.
“It’s a manageable situation,” Kevin MacIsaac, general manager of the United Potato Growers of Canada, said in a phone interview. “Potatoes are going to have to move from one channel to another that they sometimes don’t move in a normal year.”
12-09-2019 08:56 AM
Just a ruse to raise prices. This all started in in 70's with sugar and coffee. The "threat" of a shortage is big food companies trying to pull the wool over our eyes with an excuse to raise prices.
We are not stupid, just raise the price and quit the ignorant lying to us.
12-09-2019 09:23 AM
Fortunately potatoes are one of the easiest to grow home garden vegetables and do well in containers.
Maybe I should put some in containers now so I can get multiple harvests next year.
12-09-2019 09:38 AM - edited 12-09-2019 09:39 AM
I considered this to be a somewhat humorous story.
OMG, French Fry Shortage!!
And recently harvested potatoes could be smaller, but French Fry makers like to use "longer spuds".
OMG, shorter fries are in our future!!
Just thought the five-alarm headline was kinda funny. But then, I don't eat fries, so I'm not too affected by the looming spud crisis.
12-09-2019 10:44 AM
@novamc1 wrote:I considered this to be a somewhat humorous story.
OMG, French Fry Shortage!!
And recently harvested potatoes could be smaller, but French Fry makers like to use "longer spuds".
OMG, shorter fries are in our future!!
Just thought the five-alarm headline was kinda funny. But then, I don't eat fries, so I'm not too affected by the looming spud crisis.
🤣 🤣 🤣
12-09-2019 11:05 AM
I guess Maine isn't part of the group that was impacted.
12-09-2019 11:31 AM
Poke fun if you must, but this is a real problem for the potato farmers. Idaho is just up the interstate from me. This is a big story on the news around here. The early frost damaged their crops and they couldn't get the potatoes out of the ground fast enough. Neighbors were helping neighbors try to save whatever crops were left. This is big money to the potato farmers. Would you like people poking fun at you if your income was slashed due to uncontrollable conditions?
12-09-2019 11:44 AM - edited 12-09-2019 11:56 AM
No, I don't think the plight of farmers is funny. And nothing in that story or my comments pokes fun of them.
In Georgia and elsewhere in the south, some of the largest crops such as blueberries, peaches and more have been ruined by weather in the past year or two, and the farmers are still waiting for some promised federal aid.
Note that the potato story indicates the industry can recoup and adjust to the changed dynamic in supply vs. demand.
Farming has always been a business subject to weather and natural disasters. When one region suffers crop losses, another region region benefits from greater demand for the same products.
What is funny is the dramatic media-specific way of hinting that consumers will somehow have to do without fries or make do with shorter french fries. How much consumers will suffer is waiting to be seen.
12-09-2019 11:47 AM
I'll stock up on Idahoan potato pouches. There have been some good sales recently, probably because of the holidays.
The price of potato chips will probably increase but it's okay if we eat less of those.
12-09-2019 12:21 PM
Being diabetic I try to avoid the huge mounts of fries some restaurants insist on. But when I ask for a substitution I get blank looks. Usually leave the fries for trash.
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