Editor’s note: This is the fifth story in a series exploring opportunities and issues facing potato growers across the region.

While the U.S. market for potatoes is very lucrative, says Andy Anderson, the real growth potential is in exports, especially Asia and the Pacific Rim.

“The U.S. only makes up 4.5% of the world population. So if you look at the world in terms of grocery sales, our country could be considered a mom and pop corner market while the huge store is outside our borders,” says Anderson, executive director of WUSATA, short for Western United States Agricultural Trade Association.

GLOBAL OUTREACH: Janet Nuzum, director of USDA’s Asian American and Pacific Islander Affairs, speaks with others attending a trade show in Shanghai, China. Among the U.S. organizations having booths at the show was the Western United States Agricultural Trade Association, background.

“So is U.S. agriculture—including potato growers in our region—going to be content staying in the little local market, or do we want shelf space in the real big market?”

Some companies, including several that process potatoes, along with growers themselves are already answering that question.

“During a recent trade mission to Vietnam, we saw Idaho Russets in one of their stores,” Anderson says. “A lot of fresh potatoes are going overseas, and I believe that is a growing market for producers.”

Anderson says that more farms in the region are becoming vertically integrated, and some are joining with neighbors in these efforts.

“Unless they are willing to put in a processing facility of some kind, their opportunities are more in the fresh market,” Anderson says. “We haven’t been approached by individual potato farmers or groups of potato farmers wanting to discuss opportunities, but we believe there is a lot of potential out there.”

Market booster

Exports bring a variety of benefits.

For starters, Anderson notes, “The more potatoes and potato products that are sold outside of the U.S., the better chance that local growers have in seeing prices stay high and not being caught with the ups and downs of the U.S. market.”

Anderson says that the primary goal of WUSATA is to help value-added companies break into foreign markets while at the same time attracting those markets to purchase agricultural goods from 13 Western states, including all eight covered by Western Farmer-Stockman.

For example, he says, WUSATA has assisted companies in Washington, Oregon, Idaho and Colorado develop foreign markets for frozen french fries, tater tots and hash browns, dehydrated mashed potatoes, canned taters as well as potatoes in frozen vegetable mixes.

“A substantial amount of these potato products are going to the Asian market and Pacific Rim. It’s significant enough that we’re seeing more companies wanting to participate in our activities,” Anderson says. “And the companies that have been participating with us are increasing their activities. That tells me they are making money at it.”

Among the companies WUSATA has assisted into foreign markets is Salem, Ore.-based NORPAC, which annually processes approximately 600 million pounds of vegetable and fruit products, including potatoes. About 250 farmer-members supply NORPAC with crops grown on some 50,000 acres.

Anderson says that the trade missions to countries like Vietnam, China, Malaysia, Indonesia and the Philippines make it evident that farm products from the Western U.S. have exceptional growth potential abroad.

“We’re seeing french fries and hash brown patties made from potatoes grown in our region at McDonalds, KFCs and other franchises in those countries,” Anderson says. “And as residents of those countries get a taste for potatoes, they begin looking for them in grocery stores and requesting the products.”

While on trade missions, Anderson says the traditional wet markets that sell fresh meat and produce are expanding into grocery stores similar to those in the U.S.

“As that happens,” he says, “they start looking for our Western products, and potatoes figure prominently into their growing tastes. And that is among the reasons I believe there are many opportunities to see our farm products, including potatoes, move into the retail markets and restaurants of many foreign countries.”

Tomorrow we'll offer perspective on key market prospects and issues for the export business.