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Since 2005, the U.S. potato industry has enjoyed a trade surplus in potatoes and potato products. Net export value (U.S. exports minus imports) of potatoes and potato products in 2008 totaled $180 million. Japan, Canada, and Mexico are the top three export markets; together, they account for two-thirds of total U.S. potato exports. Most exports consist of processed potatoes, such as frozen french fries, potato chips, and dehydrated potato products (e.g., potato flakes, granules, and flour).
Frozen french fries are the top potato product exported from the United States, accounting for more than half of total potato export volume. In 2008, exports of frozen french fries grew by 11 percent from 2007, with exports totaling nearly 3.3 billion pounds (fresh weight basis), valued at $642 million. Aided by the weaker U.S. dollar, 2008 proved a solid year for frozen french fry exports.
Potato chips and dehydrated potato products are also important export products. From 2004 to 2008, chip exports averaged 568 million pounds with an average value of $181 million. During this same period, exports of dehydrated potato products averaged 347 million pounds with an average value of $26 million.
Few fresh potatoes are exported from the United States, partly due to restrictive phytosanitary import regulations imposed by some foreign countries. Given close proximity to U.S. growing regions, Canada is the leading importer of U.S. fresh tablestock and seed potatoes. Mexico, the second leading foreign market, imports limited amounts of both fresh and seed potatoes. Most fresh potatoes exported to Mexico are reportedly used for processing. Over the past 5 years, Canadian imports of fresh and seed potatoes averaged $73 million, while Mexico's imports averaged $16 million. Exports to Canada are expected to maintain current growth trends, while Mexico has limited potential due to restrictive phytosanitary regulations regarding U.S. fresh and seed potatoes.
Between 2004 and 2008, the United States imported an average of $854 million in potatoes and potato products. Canada, Mexico, and the Netherlands are the largest suppliers of U.S. potato imports. Canada is the leading provider of potatoes, with most imports consisting of seed potatoes and processed products such as frozen french fries. Mexico mainly supplies chips, dehydrated products, and frozen french fries, while the Netherlands supplies potato starches and frozen french fries.
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