US POTATO EXPORTS TOP $1 BILLION

DENVER, September 25, 2007—For the marketing year July 2006 – June 2007 (MY07), the United States Potato Board (USPB) reports total US potato exports were valued at a record $1,000,252,000. On a volume basis, total exports were 1,108,391 metric tons (MT). This represents an increase over MY06 of 5% in volume and 13% in value. On a fresh weight equivalent basis, exports were equal to 52,174,591 hundredweight (cwt) of raw potatoes, representing roughly 15% of total potato production in the United States and continuing a five-year trend of increasing exports.

The increase was led by exports of frozen potatoes which reached 679,510 MT, valued at $550 million and with a fresh weight equivalency of 25 million cwt. This is an increase in both volume and value of over 15% from MY06 and represents record levels of exports of frozen potato products. The top export market for frozen products continues to be Japan at 253,810 MT, which grew by 6% this past year. Other top export markets with their annual growth percentage are Mexico, 91,627 MT (2%); Canada, 80,266 MT (63%); China, 39,561 MT (31%); Taiwan, 31,642 MT (64%); Korea, 28,779 MT (-11%); and the Philippines, 28,328 MT (56%). It is interesting to note exports to the Central American Free Trade Agreement (CAFTA) countries grew 8% to a total of 45,007 MT. In most cases increases in US exports were due to overall expansion of consumption in the foreign markets, however, the US also benefited from short supplies in Europe to take market share away from the EU.

Tight world supplies and high prices of dehydrated potatoes resulted in a slight decline of 2% in the volume of worldwide exports by all producers, but a 29% increase in value. US exports took advantage of reduced production in the EU and Australia to record a 6% increase in volume to 101,268 MT and a 32% increase in value to $143 million. These exports are equivalent to 15,637,805 cwt of raw potatoes. It is valuable to note the unit value of US dehy exports rose 25% from $1,135 to $1,414 per MT. Exports to the largest market, Mexico, actually declined 31% by volume, but were up 8% in value, as usage was impacted by decreased usage in fabricated chip production. The US continued to regain sales to Japan following the GM issues in 2001 to reach 18,413 MT, valued at $22 million in MY07.  Other markets that showed good growth were China, Israel, the Philippines and Indonesia.

Declining exports to Canada led to an 11% decline in the volume of fresh potato exports to 258,679 MT, valued at $125 million. However, the decline in value was only 2% due to higher prices for US potatoes. Canada still accounts for over 60% of US fresh potato exports, so the 14% decline in exports to this market had a big impact. Fresh exports to the second largest market, Mexico, were also off by 3% this past year as the 26 kilometer border area has become saturated with US potatoes. Further growth in this market will require increased market expansion through the changing of Mexican regulations which currently prevent US potatoes from going below the 26 kilometer frontier zone. Fresh exports of both table-stock and chip-stock potatoes to Asia were off 11%, as exports to Taiwan corrected from an unusually high level in MY06, due to an almost complete failure in local production that year. Exports to Korea increased 208% to 6,157 MT; while Malaysia took 20% more US potatoes and Japan imported 1,529 MT in just the second year of exports to this newly opened market.