The tight supply of sweet potatoes across North America could affect the export market. This is thanks in part to the international market seeing historically low pricing on sweet potatoes right now. "So it's not very favorable to do business there," says 3 Star Produce's Josh Wright.
Overall, the supply of sweet potatoes across North America is down approximately 30 percent this year. While the overall acreage was up slightly in 2024, growing conditions affected production.
Along with Egypt, the most sizable competitor to the U.S. in terms of sweet potato production, there's also less acreage in other producing countries such as Portugal and Spain.
The impact of Egyptian production
Internationally, Egypt, a region that had a good crop with good quality this season, is still shipping product, though the quality is beginning to decrease given it's later into the crop. The region is expected to finish shipping in March. "Still, the gap in pricing is too far apart between what is needed and what is offered," says Wright. "It's more of an oversupply in Europe than a quality issue."
Along with Egypt, the most sizable competitor to the U.S. in terms of sweet potato production, there's also less acreage in other producing countries such as Portugal and Spain. Other areas such as Morocco and Honduras are also trying to come on stronger and there's also product from countries such as Argentina, Senegal, and Ghana.
This situation, which Wright says is unprecedented, is leaving sweet potato exports from some U.S. shippers up in the air. "Typically, our product stands apart. Our quality has always been superb and we've always had strong, steady supply," he says. "When Egypt finishes up, we're still there with quality but not there with the inventory. So as a U.S. company, you look at these levels of inventories and ask: how can you be most profitable with the least amount of risk? That's always the situation but it's even more so when your inventory levels are lower."
Wright says he foresees a drastic decrease in the international shipments of sweet potatoes.
Reconsidering new export business
When making those assessments on the lower inventory on hand, that means exports are the first up for reconsideration. "So while we're taking care of our regular clients, we are not actively pursuing more or new export business," says Wright. "I do foresee a drastic decrease in international shipments."
Back in the U.S., it helps that the domestic market pricing on sweet potatoes is trending higher than in years past, he says. "Though if you look at the difference between the increase in price and the decrease in inventory, it is not adding up so the only thing that can happen is pricing is going to have to increase."
That comes at a time when demand for sweet potatoes is stronger domestically. That said, what is likely to be impacted is the supply of sweet potatoes to the processing market. "I see processing pricing will probably increase quite dramatically because that may be what it takes to get processing potatoes there," says Wright.
F
or more information:
Josh Wright
3 Star Produce
Tel: 1+919-223-8555
https://3starproduce.com/