Potato processors are rushing to buy supplies and ship them across North America in order to keep French fries on the menu after cold, wet weather damaged crops in key producers in the U.S. and Canada.
Cool conditions started to hit growing regions in October, lashing potatoes with frost. Farmers in Alberta and Idaho were able to dig up some damaged crops for storage. But growers in Manitoba, North Dakota and Minnesota received snow and rain, forcing them to abandon some supplies in fields.
As the wild weather hurt crops, an increase in fry-processing capacity in Canada has boosted demand. The combination will lead to tight supplies, and itâ€™s likely that potato prices could climb this year across North America,
Stephen Nicholson, a senior grains and oilseeds analyst at Rabobank, said in a phone interview. International costs may also rise as the U.S. wonâ€™t be able to export as much.
â€œFrench fry demand has just been outstanding lately, and so supplies canâ€™t meet the demand,â€ Travis Blacker, industry-relations director with the Idaho Potato Commission, said in a phone interview.
In Canada, Cavendish Farms recently opened a new processing plant in Lethbridge, Alberta. Thanks to a better harvest on the countryâ€™s East Coast, the company isnâ€™t expecting any customer shortages at this time, Mary Keith, a spokeswoman, said by email.
â€œItâ€™s a manageable situation,â€ Kevin MacIsaac, general manager of the United Potato Growers of Canada, said in a phone interview. â€œPotatoes are going to have to move from one channel to another that they sometimes donâ€™t move in a normal year.â€