On March 4, the U.S. imposed a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on imported goods from China. In response, Canada immediately imposed a 25% tariff on US products. The Canadian government also is considering a second round of tariffs which will include fruits and vegetables. Mexico’s government is expected to announce retaliatory tariffs on U.S. products on March 9. China will implement a 10% tariff on U.S fruits and vegetables starting on March 10. U.S. Secretary of Commerce Howard Lutnick suggested yesterday that some tariffs could be rolled back quickly if Mexico, Canada, and China ramp up efforts to stop the flow of fentanyl into the U.S.
Canada and Mexico are major US trading partners for fresh potatoes, french fries and other frozen potato products, dehydrated products, and seed potatoes. North American growers, shippers, processors, retailers, and consumers are concerned about the impact that tariffs will have on potato markets and production costs. During the fourth quarter of 2024, the U.S. exported 1.52 million cwt of fresh potatoes to Mexico and 261,000 cwt of fresh potatoes to Canada. The U.S. also imported 2.91 million cwt of fresh potatoes from Canada during the period. Frozen processors have production capacity on both sides of the border. Trade between the two countries has helped maximize efficiency and offshore trade advantages. Canada shipped 680.7 million pounds of frozen potato products to the U.S. during the fourth quarter. On the other hand, U.S. exports to Canada totaled 32.3 million pounds, and exports to Mexico totaled 100.9 million pounds. The U.S. also imported 3.4 million pounds of potato flakes from Canada during the fourth quarter of 2024. U.S. potato flake exports to Canada and Mexico totaled 4.3 million pounds and 6.9 million pounds, respectively. U.S. growers also import a substantial volume of seed potatoes from Canada each year.
U.S. packers shipped 1.688 million cwt of table potatoes during the week ending March 1. That is up from 1.618 million cwt shipped a year earlier. Michigan packers shipped 76,524 cwt during the week ending March 1. That is up from 68,328 cwt shipped during the same week in 2024. Last week’s reported Michigan shipments were 87.1% russets, 10.1% yellow potatoes, 2.7% round white potatoes, and 0.2% red potatoes.
The USDA reports that Michigan packers are selling size A russets in 10-pound bags for $10-$11 per 50-pound bale, unchanged from last week. They are selling size A russets in 5-pound bags for $11-$12 per 50-pound bale, also unchanged. Wisconsin packers are selling size A russet potatoes in 10-pound bags for $9-$10.50 per 50-pound bale, unchanged from a week ago. They are selling russet 40-70 count cartons for mostly $12-$13 per 50-pound box, also unchanged. The weighted average shipping point price for Idaho Russet Norkotahs is $16.25 per cwt, down from $16.49 per cwt the previous week.
Red River Valley packers are selling size A yellow potatoes in 2,000-pound tote bags for mostly $19-$21 per cwt, unchanged from last week. They are selling yellow creamers for mostly $26-$28 per 50-pound carton, also unchanged. Florida packers are selling 50-pound cartons of size A yellow potatoes for $23.70-$26.25 per box, up from $20.95-$28.25 per box a week ago. Florida packers are also selling yellow creamers in 50-pound cartons for $40.25-$40.95 per box, up from $35.95-$40.25 per box last week.
– Report by North American Potato Market News