A weaker Canadian dollar has helped growers regain contracts from Simplot and McCain Foods, which export to the U.S.
Potato acres rebounded this spring in Manitoba after several years of decline.
Gary Sawatzky, general manager of the Keystone Potato Producers Association, said numbers are not finalized and figures are estimates, but potato acres in Manitoba will increase significantly this year.
“We’re up about 18 percent in volume,” Sawatzky said from his office in Portage la Prairie, Man.
“Whether that translates into 18 percent acreage (increase), I’m not sure.”
Manitoba’s potato acreage dropped to 63,000 acres last year from 76,000 in 2012. The 17 percent decline was the largest among provinces.
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Simplot and McCain Foods, which operate potato processing plants in the province, cut production contracts in the province in 2013 and 2014.
The companies said Manitoba potatoes were costly compared to regions such as Washington state, where growers can generate yields of 600 hundredweight per acre, which is double the average yield in Manitoba.
The weaker Canadian dollar, now trading around US80 cents, has helped Manitoba regain acres, Sawatzky said.
“Both companies went up (in volume),” he said.
“It’s good to see the volume back here.”
Sawatzky said growers would benefit from the additional acres because it boosts efficiency.
Increased production helps cover fixed costs such as machinery and storage facilities.
Alberta will see a slight decline in potato acres.
Terence Hochstein, Potato Growers of Alberta executive director, said acreage would be down about 1,000 acres from last year’s 53,000 acres.
Hochstein said the weak loonie isn’t as helpful for Alberta’s potato industry because most of the french fries and frozen potato products from Alberta are exported to Asia.
“Our markets are very different than Manitoba’s. (Their) market is south into the … U.S. Midwest. Our markets are offshore,” he said.
“The (Asian) market is growing, but everything is exported based on U.S. dollars, and the U.S. dollar is strong.”
Hochstein said the weak euro is aiding European potato growers and processors because their products have become more competitive globally.
Sawatzky said this year’s potato prices are three percent higher than last year, but contract prices fell by two to four percent in 2014, which means prices may still be lower than they were in 2013.
In Alberta, process potato prices are up about 1.5 to two percent, Hochstein said.
He said the price isn’t ideal, but Alberta’s potato crop is progressing nicely.
Growers planted early this spring, and the crop is about a week to 10 days ahead of normal development, he added.
“We’re still ahead of schedule, but we could use some heat now.”
