Trade mission facilitates relationships and markets for Northwest potato growers
Trade mission facilitates relationships and markets for Northwest potato growers
A grant from the U.S. Department of Agriculture facilitated a collaborative effort among the potato commissions of Washington, Oregon and Idaho to help open potato markets in Central America.
On Feb. 11, Matt Harris, director of trade for the Washington State Potato Commission, Seth Pemsler, vice president of retail and international for the Idaho Potato Commission, and Lon Baley, a representative of the Oregon Potato Commission, participated in a trade mission to El Salvador, Guatemala and Costa Rica. The 10-member delegation also included representatives from the states' respective departments of agriculture.
The purpose of the grant was to provide technical seminars to promote Pacific Northwest fresh tablestock and chipping potatoes.
"The use of matching fund dollars from USDA has given Northwest potato commissions an excellent means of providing technical seminars to help end- users gain a better understanding of our quality product," Mr. Harris told The Produce News.
The cooperative trade mission builds upon individual commission efforts to promote potato sales in Central America. Both El Salvador and Guatemala have implemented the Central American Free Trade Agreement, and these countries will reduce their trade tariffs from 12 percent today to zero by 2020.
Costa Rica has not yet ratified CAFTA, and U.S. exporters face a 47 percent tariff. After Costa Rica implements CAFTA, the United States will receive a tariff-free tariff-rate quota of approximately 300 metric tons, which is expected to grow to 384 metric tons by 2020. In subsequent years, the cap is expected to grow by six metric tons annually.
Bill Brewer, executive director of the Oregon Potato Commission, said that the trade mission sets a pathway for the future. "Through the cooperative efforts of the potato commissions of Washington, Idaho and Oregon, the Northwest potato growers have an excellent opportunity to increase sales of tablestock and chipping potatoes to countries in Central America," he indicated. Allen F. Johnson & Associates facilitated Spanish-language technical seminars. Attendees represented more than 80 snack food processors, distributors, retailers, hotels, restaurants and institutions.
Mr. Harris said that participants had a chance to learn more about Northwest fresh tablestock and chipping potato varieties, growing conditions, harvesting and packing procedures, potato characteristics, uses, grading, handling and storage technology.
Mr. Harris said that these topics will help Central American suppliers choose the right potato varieties to maximize profitability and expand their customer bases.
According to Mr. Pemsler, familiarity with Northwest potatoes will help these suppliers fill a three-month gap in all three countries when domestic potatoes are in short supply. "There's a real opportunity to expand into Central America," he said.
Part of this opportunity stems from the fact that Central American countries grow only one variety of potato: a round, white potato characterized by thin skin and high water content. But a number of potato varieties are grown in the Pacific Northwest, he said, which gives American growers the opportunity to make inroads.
Mr. Pemsler added that over the past 10 years, potato consumption in the United States has been declining. He attributed the decline to the busy lifestyles of Americans, who are spending more time away from home and not cooking as much as they used to. While Idaho previously focused on domestic potato marketing, Mr. Pemsler said that market dynamics have changed, and potato growers recognize this.
"There's a need for fresh growers to find new markets," he said, adding that potato exports to countries in Central America, which are modernizing, create opportunities.
Business relationships do not happen overnight, and Mr. Pemsler said that an ongoing conversation would serve the interests of Northwest potato growers in the coming years. This was Mr. Pemsler's fourth visit to the region, and he said that building trust and confidence is critical.
Globalization of fresh markets is continuing, and Mr. Pemsler presented an interesting tidbit of information to show how pervasive this globalization has become. During the trade mission, he discovered that El Salvador's national currency is the U.S. dollar. "El Salvador is most similar to the United States," he said of the triad of countries.
The number of American retirees drawn to Costa Rica continues to increase, Mr. Pemsler added. As a result, he postulated that retirees will seek out the kind of foods that are easily obtained in the United States.
Mr. Harris said that the Washington State Potato Commission is also communicating with culinary professionals to spread the word about the versatility of Northwest potatoes both in the United States and abroad.
Skagit Valley potato grower Roger Knutzen, owner of Knutzen Farms in Burlington, WA, has been reappointed to the USDA's Agricultural Technical Advisory Committee for Trade. He has actively served on the committee since 1992, and said that the committee provides important input on trade issues to the administration.
"U.S. agriculture is the hub of the wheel," he said. "We are only as economically healthy and secure as the industry that feeds us."
Mr. Knutzen is highly visible in Washington's agricultural landscape, serving with the state's Farm Bureau, as a soil conservation and drainage district commissioner, and as president of the National Potato Promotion Board. WSPC Executive Director Chris Voigt had nothing but praise for Mr. Knutzen's insight and involvement. "The Washington state potato industry is very trade dependent," he said. "Likewise, our outstanding product quality and ready access to overseas ports have made us a favorite around the world. Roger Knutzen's appointment to ATAC is critical in that our potato industry continues to have a voice in shaping U.S. trade policy for agricultural products."
Mr. Knutzen and other ATAC members met April 3 with federal officials in Washington, DC, to talk about the North American Free Trade Agreement and other issues of concern to the agricultural community.
"I have to feel it's beneficial to talk with those folks," Mr. Knutzen said of the national dialogue. "It's exciting to know people in Washington care enough to have us come back."
"[NAFTA] and CAFTA are really helping remove barriers and expanding markets," Mr. Pemsler concluded.
On Feb. 11, Matt Harris, director of trade for the Washington State Potato Commission, Seth Pemsler, vice president of retail and international for the Idaho Potato Commission, and Lon Baley, a representative of the Oregon Potato Commission, participated in a trade mission to El Salvador, Guatemala and Costa Rica. The 10-member delegation also included representatives from the states' respective departments of agriculture.
The purpose of the grant was to provide technical seminars to promote Pacific Northwest fresh tablestock and chipping potatoes.
"The use of matching fund dollars from USDA has given Northwest potato commissions an excellent means of providing technical seminars to help end- users gain a better understanding of our quality product," Mr. Harris told The Produce News.
The cooperative trade mission builds upon individual commission efforts to promote potato sales in Central America. Both El Salvador and Guatemala have implemented the Central American Free Trade Agreement, and these countries will reduce their trade tariffs from 12 percent today to zero by 2020.
Costa Rica has not yet ratified CAFTA, and U.S. exporters face a 47 percent tariff. After Costa Rica implements CAFTA, the United States will receive a tariff-free tariff-rate quota of approximately 300 metric tons, which is expected to grow to 384 metric tons by 2020. In subsequent years, the cap is expected to grow by six metric tons annually.
Bill Brewer, executive director of the Oregon Potato Commission, said that the trade mission sets a pathway for the future. "Through the cooperative efforts of the potato commissions of Washington, Idaho and Oregon, the Northwest potato growers have an excellent opportunity to increase sales of tablestock and chipping potatoes to countries in Central America," he indicated. Allen F. Johnson & Associates facilitated Spanish-language technical seminars. Attendees represented more than 80 snack food processors, distributors, retailers, hotels, restaurants and institutions.
Mr. Harris said that participants had a chance to learn more about Northwest fresh tablestock and chipping potato varieties, growing conditions, harvesting and packing procedures, potato characteristics, uses, grading, handling and storage technology.
Mr. Harris said that these topics will help Central American suppliers choose the right potato varieties to maximize profitability and expand their customer bases.
According to Mr. Pemsler, familiarity with Northwest potatoes will help these suppliers fill a three-month gap in all three countries when domestic potatoes are in short supply. "There's a real opportunity to expand into Central America," he said.
Part of this opportunity stems from the fact that Central American countries grow only one variety of potato: a round, white potato characterized by thin skin and high water content. But a number of potato varieties are grown in the Pacific Northwest, he said, which gives American growers the opportunity to make inroads.
Mr. Pemsler added that over the past 10 years, potato consumption in the United States has been declining. He attributed the decline to the busy lifestyles of Americans, who are spending more time away from home and not cooking as much as they used to. While Idaho previously focused on domestic potato marketing, Mr. Pemsler said that market dynamics have changed, and potato growers recognize this.
"There's a need for fresh growers to find new markets," he said, adding that potato exports to countries in Central America, which are modernizing, create opportunities.
Business relationships do not happen overnight, and Mr. Pemsler said that an ongoing conversation would serve the interests of Northwest potato growers in the coming years. This was Mr. Pemsler's fourth visit to the region, and he said that building trust and confidence is critical.
Globalization of fresh markets is continuing, and Mr. Pemsler presented an interesting tidbit of information to show how pervasive this globalization has become. During the trade mission, he discovered that El Salvador's national currency is the U.S. dollar. "El Salvador is most similar to the United States," he said of the triad of countries.
The number of American retirees drawn to Costa Rica continues to increase, Mr. Pemsler added. As a result, he postulated that retirees will seek out the kind of foods that are easily obtained in the United States.
Mr. Harris said that the Washington State Potato Commission is also communicating with culinary professionals to spread the word about the versatility of Northwest potatoes both in the United States and abroad.
Skagit Valley potato grower Roger Knutzen, owner of Knutzen Farms in Burlington, WA, has been reappointed to the USDA's Agricultural Technical Advisory Committee for Trade. He has actively served on the committee since 1992, and said that the committee provides important input on trade issues to the administration.
"U.S. agriculture is the hub of the wheel," he said. "We are only as economically healthy and secure as the industry that feeds us."
Mr. Knutzen is highly visible in Washington's agricultural landscape, serving with the state's Farm Bureau, as a soil conservation and drainage district commissioner, and as president of the National Potato Promotion Board. WSPC Executive Director Chris Voigt had nothing but praise for Mr. Knutzen's insight and involvement. "The Washington state potato industry is very trade dependent," he said. "Likewise, our outstanding product quality and ready access to overseas ports have made us a favorite around the world. Roger Knutzen's appointment to ATAC is critical in that our potato industry continues to have a voice in shaping U.S. trade policy for agricultural products."
Mr. Knutzen and other ATAC members met April 3 with federal officials in Washington, DC, to talk about the North American Free Trade Agreement and other issues of concern to the agricultural community.
"I have to feel it's beneficial to talk with those folks," Mr. Knutzen said of the national dialogue. "It's exciting to know people in Washington care enough to have us come back."
"[NAFTA] and CAFTA are really helping remove barriers and expanding markets," Mr. Pemsler concluded.
