Experts at EastFruit have observed a downturn in the international seed potato market over the last five years, with a particular decline noted among the top four exporters, who collectively represent 74% of the market. This decrease in global exports is attributed to several factors, including adverse weather conditions in 2022 and 2023 in key production areas, an increase in local breeding efforts, and growing trade barriers, both tariff and non-tariff, which have impacted the overall efficiency of the potato industry.
Andriy Yarmak, an economist with the FAO's Investment Centre, highlighted, "The global decline in international trade in seed potatoes is due to extremely unfavorable weather conditions in 2022 and 2023 in the main producing countries, which negatively affected production volumes. Additionally, there has been an intensification of local breeding programs in some countries. Recently, the factor of 'deglobalization,' or the increase in trade barriers, both tariff and non-tariff, by various countries, has further decreased the efficiency of the potato business as a whole."
From 2019 to 2023, the global seed potato market contracted by 42,000 tons, marking a 2.5% average annual decrease. The UK experienced the sharpest fall in exports, at a rate of 6% per year, while the Netherlands saw a slower decline of 2.7% annually but faced a larger volume decrease of 24,000 tons each year. Despite these trends, the Netherlands maintains a dominant position in the market, accounting for over 51% of global exports.
Germany has recently surpassed the UK, becoming the third largest exporter, with France securely in second place, holding a 12% market share. Belgium and Egypt have seen the most significant changes among the top 10 exporters, with Belgium facing the steepest decline and Egypt, particularly due to increased exports to Russia in 2023, marking the most notable growth. However, the future of Egypt's trade with Russia remains uncertain. The United States has also seen growth in seed potato exports, averaging a 9% increase per year, distinguishing itself as the only top-10 country with a consistent upward trajectory in exports.
Source: East-Fruit