New National Potato Council report shows $1B export potential
Already a significant contributor to the U.S. economy, the potato supply chain has plenty of growth potential with expanded foreign market access.
That's according to the National Potato Council, which recently released its latest "Spud Nation" economic report on the eve of the 2024 Washington Summit. NPC said the study, authored by Michigan State University economists, shows the U.S. exports about 20% of potatoes grown in the country.
“Potato and potato products generated around $4.78 billion in economic activity, and it supported approximately 34,000 U.S. jobs throughout the value chain,” NPC incoming president Bob Mattive, a Colorado potato grower, said during the council's announcement. “That ... economic activity didn't just benefit potato growers, but also farm laborers, process workers, truck drivers, longshoremen and the communities that they live.”
NPC estimates expanded foreign market access could add $1 billion and 5,600 domestic jobs, an increase of 21%. Mattive said these markets include Canada, Japan, Mexico, South Korea and other East Asian and Middle Eastern markets.
“We all know that potatoes are America's favorite vegetable. Now we know that potatoes also hold the key to unlocking some further job growth and economic development,” he said.
Current NPC President RJ Andrus, a potato grower from Idaho, said growers looking to export face tariffs, quotas and phytosanitary barriers. NPC members worked to help eliminate barriers and gain 100% market access to Mexico two years ago, which benefits the country’s potato industry, according to the council.
“As a result, we've seen exports increase by more than 100 million and we believe the market has additional room for growers,” Andrus said during the announcement. “We're now working to achieve the same access to Japan for U.S. potatoes, the market that's been shut out to us.”
Andrus said NPC estimates market access in Japan would mean an additional $150 to $200 million.
NPC CEO Kam Quarles said the true opportunity for the potato industry in Japan is in fresh table stock potatoes. Quarles said while there is a limited domestic industry, the country does not import any fresh table stock potatoes.
Quarles said though the NPC and the USDA have worked to open market access, negotiations have stalled.
This year's report is available at NationalPotatoCouncil.org/SpudNation.
Last year's NPC “Spud Nation” report found the potato supply chain drove $100.9 billion in U.S. economic activity, supported more than 714,000 jobs and contributed $34 billion in wages in 2021.
