Industry News - wk ending 3 Jun '22
Potato News - Domestic (North America)
Canada: The heart of PEI’s economy, potato farmers now face financial chaos and an identity crisis
As reports for The Globe and Mail, after potato wart was detected in two Prince Edward Island fields last fall, Canada quickly shut down most shipments of the province’s potatoes to the U.S., in order to dissuade the Americans from imposing their own ban.
US Potato Stocks
According to the Norther American Potato Market News (6/2/22, Vol. 30, No. 34), as of June 1st total potato stocks were up almost compared to last year, but down almost 6% compared to the average level of the past three years. Potatoes stocks marked for processing were down almost 2% for the same time period.
Russet Prices Increase
Prices for Idaho Russets have gone up each week for the last 7 weeks as stocks continue to decrease.
Potato News - Foreign
Burger King Japan is offering dried ramen instead of French fries in its combo meals
In recent months, Japan has been rocked multiple times by a potato shortage. Some might say “rocked” is too strong a word, but how else can one describe the collective simultaneous rumbling of unsatisfied stomachs across the country as fast food giants like McDonald’s and Mos Burger were both forced to suspend French fry sales?
Potato planted area in Europe forecast to remain stable amid increased input costs
According to market participants, preliminary estimations show that there is expected to be a marginal growth in the area devoted to potato production, if any, within Europe for the upcoming 2022/23 season. As Mintec reports, growers have faced significant rises in various input costs, including fuel, fertiliser, electricity and labour, and this is expected to have influenced planting decisions for the 2022/23 potato season.
Potatoes to be grown in the Arctic
Two entrepreneurs have become residents of the Russian Arctic and are planning to grow potatoes. In Pinezhye (a municipality in the Arkhangelsk region), potatoes are grown relatively recently. Until Soviet times, the fields were usually occupied with barley. And in the difficult nineties, when wages were not paid for months, potatoes became the first bread.
The head of the German farmers’ union asks to increase food prices for the survival of agribusiness
The German Farmers’ Union is advocating for higher retail food prices amid soaring prices in various sectors of the economy. This was stated by the head of the association, Joachim Rukvid, in an interview published on Wednesday with the newspaper Augsburger Allgemeine.
Values in the Fresh Potato Market are Holding Steady
Fresh cultivar market prices are keeping constant, and new spud crop from Spain and Italy is becoming more visible. The potato export demand from Eastern Europe, notably Poland, is still strong, but the market is price sensitive, according to a recent Irish Farmers’ Association report.
Planting of early potatoes in France has been completed and the harvest has started in some areas
According to the French Potato Interprofessional (CNIPT), the harvest of the early varieties in France is progressing smoothly despite the difficult conditions caused by the lack of water in recent weeks, and the volumes should be in line with the expected production.
Peru celebrates Potato Day
In Peru, the national holiday, the Day of the Potato, was merrily and noisily celebrated.
Logistics News
Diesel Fuel Shortages Are Worsening Inflation in the U.S.
It cost Carl Smith $999 to refill the 275-gallons fuel tank of his semi-trailer on Sunday for a run from Ohio to Wisconsin—and that’s just because his fuel credit card cuts off at $1,000. In the nearly 40 years he’s been driving, the price of diesel fuel has never been that high. “That’s the most it ever cost me to fill up, and I didn’t even get all the way filled,” he says.
Diesel Sheds 3.2¢ to $5.539 in Third Straight Decrease
The national average price for diesel dropped 3.2 cents to $5.539 a gallon, according to Energy Information Administration data released May 30.
US exports even more oil as domestic gasoline, diesel prices spike
U.S. oil exports are booming at the very time domestic gasoline and diesel prices are at or near their peaks. With America’s fuel prices expected to rise even further, the “resource nationalism” debate — should we be exporting commodities we need? — is heating up.
Report: Drayage rates will continue to surge in 2022
Drayage service provider Book Your Cargo (BYC) released its BYC Drayage Spot Market Index forecast for June, revealing a 28% increase in spot market rates this month compared to June 2021. Drayage is the term for moving freight short distances, typically from a terminal or port to the next mode of transportation.
Food Industry News
Global events spur search for alternative oils
High-oleic oils, though value-added and higher in price, extend shelf life, possibly saving money on a cost-in-use basis. Fortunately, high-oleic versions of soybean, canola and sunflower seed oils are available. Unfortunately, all have increased in price for various reasons.
General Mills has taken pricing five times
General Mills, Inc. has raised prices five times over the past year, a development likely without precedent, said Jonathon J. Nudi, Group President of North American Retail.
Nudi details General Mills supply chain issues
“We’re seeing 10 times the number of disruptions in our supply chain from an ingredient standpoint coming into our plans than we ever experienced before,” Mr. Nudi said. “And this gets really challenging because we can’t see them coming in many cases. So a truck is supposed to show up with oil at our refrigerated dough plant in Tennessee and doesn’t show up. So we have to shut the line down. Obviously, that creates lots of issues in terms of having the right amount of product and supply to our customers. And at the same time, it drives a lot of incremental costs as well. So we have thousands of these material disruptions every single month now, and it’s something that we haven’t seen before.”
PLMA debuts theme of 2022 Chicago trade show
The 2022 PLMA Show will put special emphasis on food and non-food areas where store brands innovation is exploding. These include plant-based and free-from; new flavors & ingredients; wines & spirits; fresh, frozen & refrigerated; restaurant-style cuisine at home; hemp-derived CBD; self-care; health & wellness; beauty & cosmetics; kitchenware essentials, tools & gadgets; pet care; food & non-food products with an international flair; and sustainable, clean label & packaging.
Organic food sales growth rate slows to 2%
Organic food sales in the United States increased about 2% to $57.5 billion in 2021, according to the Organic Trade Association’s industry survey released May 31. Overall organic sales were over $63 billion thanks to a 2% increase. Non-food sales jumped 7% to $6 billion.