Since 2019, Potatoes USA has been conducting foundational activities to create a new outlet for U.S. fresh, frozen, and dehydrated potato exports. Two brand new target markets, Saudi Arabia and the United Arab Emirates (UAE), have seen significant steps toward building the U.S. potato supply chain.
Saudi Arabia and the UAE are developing markets in the Gulf Cooperation Council (GCC) region. Although the region has seen increases in U.S. potato exports, these have been irregular and typically part of consolidated shipments; the GCC food industry has little to no experience with U.S. potatoes and no recognition of product origin. The key factor contributing to the lack of recognition is the absence of a major U.S. supplier representation in the market.
However, as of the end of June 2021, a major U.S. supplier of frozen potatoes will be shipping a full container of U.S. frozen potato products. This has resulted from two years of sustained effort to build partnerships between U.S. suppliers and regional buyers. Potatoes USA originated a trade lead and then carried out ongoing communications with Bidfood Middle East, a wholesale food distributor in the foodservice and catering industries. Bidfood received a sample U.S. product to compare against its current European fries, resulting in the container order.
Another breakthrough was achieved thanks to the Gulfood trade show in Dubai, UAE, in February 2021. A meeting at the show resulted in a regional consolidator/importer deciding to carry two brands of U.S. frozen potatoes for direct distribution. This is the third year Potatoes USA has participated in this show, which has helped establish U.S. potato products and build trade contacts.
Another impactful activity in creating a foundation for future sales was a series of Virtual Trade Missions conducted during December 2020, connecting U.S. exporters with potential buyers. These consisted of virtual one-on-one meetings between U.S. suppliers and GCC companies. While the meetings were confidential, participants’ feedback was very positive, and follow-up between companies has been occurring. So far, Choithram’s Supermarkets, a retail chain with 42 outlets throughout the UAE, now regularly carries a line of U.S. fresh potatoes in the majority of its stores. Previously, it had sporadically sold these in some outlets; however, the one-on-one meetings helped consolidate their relationship and make these a recurring item.
Further, virtual trade mission participant Barakat, a leading UAE importer/distributor of fresh produce, partnered with Potatoes USA to conduct a trial shipment of five U.S. fresh potato varieties. Barakat previously purchased U.S. fresh russet potatoes, which were shipped air freight, but the February 2021 sample shipment included russet, red, white, yellow, and fingerling potatoes, shipped ocean freight. The trial shipment provided Potatoes USA with valuable information about how well the varieties survived the trip and how they compared to potatoes from other sources.
The work Potatoes USA is doing to strengthen the supply chain in the region for U.S. potatoes is laying the foundation for future growth.
