#PotatoIndustry #CanadianPotatoes #StorageHoldings #FreshPotatoStocks #ProcessingSector #SeedInventory #ShippingPatterns #MarketDemand #PlantingSeason #UPGC
The Canadian potato industry is experiencing fluctuations in storage holdings, with estimates showing higher levels than the three-year average as of June 1, 2023. However, these figures are down by 3.3% compared to the previous year. This article explores the developments in potato storage, including the decline in inventory levels, monitoring of supplies by shippers, and the impact of crop transitions. Additionally, it examines the consequences of these developments on fresh potato stocks, processing sector potatoes, and seed inventory.
The recent data reveals that in May 2023, a record-breaking 731,553 tons of potatoes were transported out of storage, marking a 13% increase from April and a modest 4.4% rise compared to May 2022. The experts at the UPGC (United Potato Growers of Canada) highlight the decrease in fresh and processing disappearance, along with a doubling of seed disappearance, which aligns with the planting season in May. Quebec and Manitoba witnessed slight increases in fresh shipments, while other provinces experienced declines in this sector. On the contrary, all provinces, except Quebec and Manitoba, saw increased shipments in the processing sector for May.
In terms of seed movement, the majority of it took place in May in the eastern regions, with 94% of the December seed holdings having been shipped by the end of May. In contrast, the majority of seed potatoes in the western regions were already shipped in April. Planting conditions across Canada were excellent, offering a significant improvement over the previous year’s chilly and rainy spring. Although hot and dry weather since planting has yet to have a significant impact on the crops, growers remain vigilant about the forecast as the plants mature.
Fresh Potato Stocks Down 17.2%: Canada’s fresh potato stockpiles reached 181,364 tons by the end of May, marking a 17.2% decrease from the previous year. However, the stocks remain significantly higher than the three-year average. Due to declining inventories, fresh potato shipments in May decreased by 13% to 106,684 tons. The future pace of shipping, as well as weather conditions in June for the new crop, will play crucial roles in determining market dynamics.
Processing Sector Potatoes Show Slight Increase: Potato storage levels for the processing sector in Canada have increased by a marginal 6,248 tons as of June 1, compared to May 2022. The sector experienced a 5.2% increase in movement from December through May, shipping a record-breaking 370,857 tons. This growth can be attributed to high demand from processors, driven by global demand for frozen fries and the need to catch up from shortages in the previous summer. Most provinces observed greater movement in May, except for Quebec and Manitoba, where shipments of processing potatoes declined.
Seed Inventory Remains Stable: The potato seed stock recorded as of June 1, 2023, stands at 33,021 tons, only 304 tons less than the previous year but higher than the three-year average. Despite this slight decrease, the shipping pace for potato seeds has increased by an average of 6,655 tons per month from December to May, compared to the same period in 2022. New Brunswick, PEI, and Manitoba witnessed significant increases in shipments in May, while other provinces reported decreases due to depleted stocks. Notably, New Brunswick holds the bulk of the remaining seed storage, which may be due to ongoing planting activities and reporting delays.
The Canadian potato industry is witnessing changes in storage holdings, with fresh potato stocks declining, processing sector potatoes showing slight increases, and the seed inventory remaining relatively stable. These developments reflect the interplay between market demands, seasonal transitions, and regional variations in planting and shipping. Stakeholders in the industry will continue to monitor inventory levels, shipping patterns, and weather conditions as they navigate the upcoming months.
