Supply of sweet potatoes out of North Carolina, the state that is responsible for two thirds of U.S. sweet potato production, was less than ideal due to uncontrollable environmental factors. "Yields are down about 50 percent and packouts are well below historical averages," says Norman Brown with Wada Farms. "Overall, the 2024 sweet potato storage season will come with some challenges that we will have to carefully mitigate to protect the growers and retailers."
What caused this drop in supply? The state experienced a lot of rain in July, which was followed by a very dry August. "The crop did not fare well against the elements," Brown said. During harvest, growers have seen a fair amount of the crop impacted by rot due to the excessive moisture. As a result, yields are being impacted upwards of 50 percent.
High prices
The law of supply and demand is in full effect with below-average supplies. Prices continue to climb, and demand is still very high as the Thanksgiving holiday is the biggest pull of the year. "We are seeing great movement, but it is unfortunate we were delayed with harvest. If we would have been able to start harvest earlier, more sweet potatoes would have been available for Thanksgiving," shared Brown. A significant share hasn't finalized curing for long-term storage.
With a growing bull market for sweet potatoes, returns will still be below cost of production to account for losses in yield. Brown expects pricing to increase even further after Thanksgiving as supplies will be diminishing. With supplies being tight this season, U.S. growers are expected to limit supply chain risks and focus on domestic distribution. "Meeting the needs of domestic retailers is our primary concern now." Traditionally, North Carolina has a year-round storage program to meet the market demand, but it will be very tough to stretch supplies to meet a 12-month shipping window.
For more information:
Norman Brown
Wada Farms
Tel: +1 (919) 578-4020
[email protected]
www.wadafarms.com