|
Click to listen to this article
|
The U.S. potato market enters 2026 with a mix of record-breaking yields and persistent pricing pressures that create a challenging environment for growers and processors alike. U.S. potato production is estimated at 412 million cwt for 2025, down 2 percent from last year, according to USDA projections. This decline comes despite a record-high average yield of 461 cwt per acre, the highest in the past decade, as planted area fell to 901,000 acres, the lowest in ten years.
Despite lower production, low open-market prices—especially in Idaho and other major shipping regions—are fueling overall potato shipments as growers and shippers work to clear contract overages and manage abundant supplies. U.S. fresh potato shipments rose in November despite one fewer business day. Adjusted for that, movement was up 8.8% nationwide. Idaho led the overall increase, posting its strongest November in at least 25 years. Shipments from Idaho were up 18.1% season-to-date, while Columbia Basin gains were modest.
Nationwide, early-season disappearance totaled 144.4 million cwt, down 1.7% from 2024. Dec. 1 stocks were 267.7 million cwt, 2.4% lower than a year ago. Processing use matched last year’s pace nationwide, with frozen demand offsetting weaker dehydrated usage.
Carryover supplies from 2024 displaced some new-crop demand. Although contract volumes for the 2025 crop have been significantly reduced, raw-product supplies are still tracking above budget, largely due to higher-than-expected yields in regions such as Idaho and the Columbia Basin. Fryers purchased contract overages during harvest, but those procurements have mostly ceased, signaling for now that processors are well covered.
Grower returns are under strain, and concerns are mounting about overages leading to additional storage needs and even potential dumping or cattle feed usage. For now, the U.S. potato market stands at a crossroads: abundant supply and steady demand on one side, economic and competitive pressures on the other.
SOURCE: AGWEST