Weather
Locations
Careers
Login
Potato updates
Potato demand faces headwinds.
Potato growers nationwide are facing challenges with reductions in contracted acres and prices, leading to an estimated 40,000-acre decrease in planted acreage. Of this reduction, the Pacific Northwest accounts for 33,000 acres. With fewer plantings, the seed market has weakened significantly, causing widespread seed dumping. Planting is progressing across the West; growers in the Columbia Basin and western Idaho have finished planting, and those in eastern Idaho have reached about 75–80% completion. Meanwhile, in Oregon’s Klamath Basin, planting is set to begin in the coming weeks. Notably, producers in this region will receive a full water allocation for the first time in four years.
Potato demand, however, remains under pressure. McDonald’s, a major purchaser of french fries, reported a 3.6% decline in year-over-year sales and a 2.6% drop in customer visits this quarter, citing reduced dining out as consumers tighten budgets. Compounding these issues, tariffs could impact export demand, which accounts for nearly 15% of potato production. This adds uncertainty to domestic markets and raises concerns about whether processors have sufficiently adjusted to changing demand levels. If these economic pressures and demand patterns persist, there is a possibility of continued oversupply in the french fry market.
Profitability
March 12, 2025
Potatoes (Contracted): Breakeven profitability - Neutral 12-month outlook
Potatoes (Uncontracted): Slightly unprofitable - Neutral 12-month outlook
Stable pricing agreements benefit contracted potatoes, but many producers face reductions in contracted acres.
Recent surpluses of open market potatoes have driven prices down and will keep them below breakeven levels in the near term.
