Industry News - Wk ending 22 Apr '22
Potato News - North America
Potatoes: demand is greater than supply
Demand for potatoes is high, while supply remains low. That could be good news for Florida producers hoping to take advantage this spring, said John Toaspern, chief marketing officer for Potatoes USA.
The Date of Expanding US’s Fresh Potato Access in Mexico, Settled
A recently agreed work plan between the United States of America (US) and Mexico agriculture officials states that the entire Mexican market would be open no later than May 15, 2022, for all US table stock and chipping spuds.
US Inflation Could Enforce Chips Shortages or Total Disappearance From Store Shelves
Experts expect that the price of potatoes will increase by 30%, so they are more expensive, and stores may have less supply, according to Newsbreak.
Variable Canadian Potato Stocks in April 2022
Even though the total Canadian Potato Storage Holdings on April 1, 2022, counts up 20%, they grew 33% in the four Eastern Provinces and down 8% in Western Canada, showing the regional differences in the country.
Idaho UPS pilot killed instantly after her plane crashes into potato processing plant
An experienced female pilot was killed instantly after her plane crashed into a potato processing plant with a large chimney next to a rural airport in Idaho.
CFIA to boost staff numbers in effort to ‘accelerate’ potato wart investigation on Prince Edward Island
Stu Neatby reports for Saltwire Network that a $12-million influx of federal dollars will help the Canadian Food Inspection Agency (CFIA) to boost staffing in Prince Edward Island and speed up its investigation into the spread of potato wart that prompted an 18-week lockout of P.E.I. fresh potatoes from the U.S. market.
Potato News - Overseas
Riots in Cuba as people queue for potato quota
In February, the Government doubled the price of potatoes due to the rise in the price of agricultural products and the increase in labor costs per employee. One pound of the tuber went from three to five pesos, and six in the case of refrigerated potatoes.
South Korea’s Lotteria burger chain seeking potato suppliers ‘other than U.S.’ due to supply chain frustrations
Lotte GRS, operator of Lotteria, reportedly said it is seeking other global potato suppliers instead of the U.S., where the fast food franchise imports most of its frozen potatoes from. “We started to import frozen potatoes from Europe last year to cope with repeated supply difficulties. The quality of potatoes may be different (from American potatoes), but the company decided it is better to supply the food stably first,” a Lotte GRS official said.
Market Analysis: The impact of Russia’s war on the potato industry of Ukraine
In 2020, Ukraine ranked as the third biggest producer of potatoes in the world when the country produced 20,8 mln tonnes, according to figures released by the FAO. Despite this, the country’s domestic production is not enough to satisfy local market demand, and Ukraine is importing hundreds of thousands of tonnes annually.
UK food production to shrink as input inflation hits 24%
The analysis also shows that no farming enterprise has been able to avoid the impact of soaring costs, with cereals and oilseed producers seeing the greatest increases at 28%, followed by potatoes, dairy, and beef and lamb producers – all hit by inflation of more than 20%.
Logistics News
Food shippers still face major logistics challenges
Conditions in the trucking industry are showing signs of improvement since the onslaught of COVID, which is critical since trucks transport more than 70% of US freight and are responsible for nearly all “last mile” deliveries. Railroads have been challenged by labor shortages and other factors that have seriously hurt performance with grain deliveries running weeks behind schedule in the Southwest hard red winter wheat region. The rail industry has experienced a major merger in the past year and averted a prolonged strike in Canada with government intervention.
National diesel average is up, for the week of April 18, reports EIA
The average price per gallon of diesel gasoline saw an increase, for the week of April 18, according to data this week issued by the Department of Energy’s Energy Information Administration (EIA).
Diesel prices turn back north
U.S. average for trucking’s main fuel rises 2.8 cents to $5.101 as most regions of the country struggle to shake the $5-per-gallon mark. Meanwhile, fuel surcharges and freight rates have been following diesel’s track.
Food Industry News
Demand for clean label drives new innovative dough conditioners
An area that is impacting bakery manufacturers is consumers’ increasing demand for clean-label ingredients. Kerry shared a few key data points from their proprietary research, Kerry “Beyond the Label,” stating that 82% of U.S. consumers believe clean label is important, with almost as many evaluating ingredients called-out on food packages.
FDA proposing more aggressive approach on food allergens
The Food and Drug Administration issued a draft guidance April 18 that outlines the agency’s approach to evaluating the public health risks of food allergens that are not one of the major nine allergens. Comments on the guidance are due within 120 days of publication in the Federal Register.
Sanctions will play role in Russian wheat distribution
Though futures markets already have priced in uncertainty tied to the ongoing Russia-Ukraine conflict, grain markets the world over will truly begin to feel the impact of supply deficits on the global wheat and corn balance sheets beginning in August and September.
Alternative flours fuel snack food innovation
The term “alternative flour” implies a foodstuff other than traditional milled cereal or seed that has been ground into a fine consistency. Among reasons a product developer may use such flours is to eliminate gluten-containing grains, namely wheat, from formulations. Other motives include replacing nutrient-void flours such as those from rice and tapioca with flours that contain protein, fiber, heart-healthy fats and other nutrients.
Upcycled Certified program expands into Canada
This Earth Day 2022 the Upcycled Food Association (UFA), the premier trade association for the upcycled industry, has announced the expansion of its Upcycled Certified program into Canada after seeing extraordinary success in the U.S. market.
USDA planting report adds more volatility to market
The typically market-moving US Department of Agriculture Prospective Plantings report didn’t disappoint on March 31. Planting intentions for spring wheat, corn, soybeans and some other crops far different from pre-report trade expectations added more uncertainty to already volatile markets.
Producer Price Inflation Gets Entrenched at 10%, Worst Level in the Data
This marks the fourth month in a row that producer price inflation clocked in at around 10%, and all four months were by far the worst in the data going back to 2010 (red line). And it does not yet include the spike in fuel prices following Russia’s invasion of the Ukraine. That’s still to come.