Canadá: Potato holdings, planting projections suggest strong season for industry

Greg Donald, general manager of the P.E.I. Potato Board, returned last week from the ‘crop transition conference’ in Minnesota, held annually by the United Potato Growers groups where industry experts and analysts from Canada and the United States converge. 

“We study the supply situation of the old crop relative to what the market needs, and then look at everyone’s projections in anticipation of the new crop coming on, like acres planted. We try to get a handle on the supply-demand situation from old to new,” said Donald. 

Donald said early projections are that P.E.I.’s acreage will be similar or slightly larger this year than last. The same projections are being offered by other potato growing areas like Idaho, Manitoba and Alberta. 

That would put P.E.I.’s acreage at between 83,500 to 84,000 acres this season but Donald said until Stats Canada releases its final figures around mid-July, “we just don’t know for sure, but I’d say somewhere close to last year.” 

“Some people are still planting (as of June 20) because of delays cused by a period of cool, wet weather in early June.” 

Donald said those figure point to “positive feelings in the industry around North America . . . that we’re kind of holding our own.”  

Idaho, which grows more potatoes than all of Canada, is looking at more acres, in response to increasing processing needs, with a similar case in Alberta where new processing came online. 

Donald said processing is pretty much at capacity on P.E.I. and there’s been expansion of the industry in Western Canada as the processing market is still expanding in North America and globally. 

“Processing is probably expanding at the pace of one processing plant per year, so there’s some growth there.” 

He said table stock numbers are holding their own. “There’s been strong demand.”  

Although its early, indications are that potato holdings are tight across North America and the marketplace is placing added demands for more production. 

New potatoes are already hitting the market from Florida and other early areas in the U.S. and a lot of the market outlook will depend on how the crop finishes as the summer progresses. 

“We’re shipping processing potatoes from P.E.I. to Alberta and all the way to Oregon,” said Donald, to help with processing needs. “So obviously there’s room for growth. Low holdings demonstrate that the market is growing.” 

Donald said it’s too early to make price projections – whether the market is going to hold or not. We don’t see any change for a while.” 

“We had a really good crop last year,” said Donald, noting that P.E.I. was more fortunate in terms of growing conditions than many other potato growing areas. "Our exports are up significantly to the U.S., over our historical movement there.” 

Donald said the demand for P.E.I. potatoes is not all weather-related. “Island producers are working hard on improving soil health and there’s a lot of different varieties that are being used on P.E.I. that work more favorably in our growing season. It was kind of a spotty spring, a decent early April and they got some early varieties in, and then things kind of stalled because it was cold and wet. Some guys are still putting in the late varieties.” 

“Things are off to a good start. We’re always optimistic at this stage. Producers have done all they can do, and now it’s up to Mother Nature to co-operate.” 

Donald said the board is still awaiting word on its appeal of a federal court ruling that came down April 14. The board sought to lift a ban on Island seed potatoes put in place by the Canada Food Inspection Agency (CFIA) and then renewed by ministerial order after potato wart was detected in two fields in the fall of 2021. 

The board appealed the judge’s decision in early May. A similar export ban on tablestock potatoes was lifted in April 2022, allowing shipments to resume to the U.S. and elsewhere, but the seed ban remains in place. 

The Federal Court of Canada heard the original case March 23 in Charlottetown where the board sought a judicial review on the CFIA’s order. 

“There hasn’t been a whole lot new on that file other than we gave the go ahead to appeal the decision. Unfortunately, that process doesn’t move very fast.”  

P.E.I.’s seed acreage remains steady at about 7,500 acres to supply local demands, leaving some 50,000 acres for processing contracts and the other 25,000 acres for fresh and table stock markets. 

While two per cent of P.E.I.’s seed production would have been exported, Donald said “it’s a very important two per cent. If you’re a grower, those sales are gone . . . that’s what they do. They are the foundation of all our industry.”