USA – The USDA Agricultural Marketing Service (AMS) has announced a USD 50 million purchase of surplus potatoes.
This move addresses a significant oversupply issue from the 2023 growing season. The National Potato Council (NPC) requested this action on behalf of the Washington State Potato Commission and the Idaho Potato Commission.
“We thank Secretary Vilsack and the entire team at AMS for taking this request seriously, as evidenced by the resources committed in their announcement,” said Dean Gibson, NPC Vice President of Legislative Affairs.
He also expressed gratitude to Randy Russell and his team at The Russell Group for their strategic counsel and to Mark Klompien, President and CEO of United Potato Growers of America, for providing vital economic data.
During the NPC Washington Summit in February, leaders from the Washington State Potato Commission and the Idaho Potato Commission asked the NPC to request the USDA’s surplus commodity purchasing authority.
This request aimed to address the oversupply of potatoes, which threatened growers’ financial stability for years. The NPC submitted the request via a letter to the USDA on April 25, following two months of discussions with state potato organizations to ensure no objections.
The letter highlighted the urgency of the situation: “After numerous meetings with officials representing the major U.S. production areas, the industry has determined that a surplus commodity purchase of USD 50 million would provide some relief.”
Kazakhstan’s Potato Export Surge
In related news, Kazakhstan has experienced a significant increase in potato exports. Over the past five months, the country sold potatoes abroad worth USD 31.7 million, nearly four times more than in the same period in 2023. This marks the highest value for potato exports in at least a decade.
Turkmenistan and Uzbekistan were the primary importers, contributing to the export of 294,000 tons of potatoes compared to 108,000 tons last year.
The average price for exported potatoes also saw a significant rise, reaching $644 per ton, seven times higher than the previous year.
While export data is available, there is no current operational data on domestic potato sales. Experts estimate that per capita consumption in the first quarter was 3.8 kilos per month, excluding catering.
The USDA’s USD 50 million purchase and Kazakhstan’s booming exports highlight the dynamic and challenging nature of the potato market.
These developments demonstrate the industry’s ongoing efforts to navigate supply and demand issues while supporting growers and meeting international market demands.
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