Spudman November/December 2022 - 38

Foodservice sales drove U.S. potato
utilization growth of 2.1%
POTATOES USA
Kim Breshears
Chief Marketing
Officer
Images: Potatoes USA
To help the
industry understand
the demand for domestically produced
potatoes, Potatoes USA conducts a sales
and utilization study annually. This past
year, the utilization of U.S.-grown potatoes
increased by 2.1% (683MM lbs.) during July
2021-June 2022 (FY22), bolstered by the
foodservice channel.
This growth is a strong indicator that
the foodservice sector is recovering from
the impacts of the pandemic. Utilization
shows the share of potatoes sold, by
form (fresh, processed, dehydrated), from
the domestically grown crop. All data is
calculated using a fresh weight equivalent
measurement to ensure we understand what
happens to the total crop regardless of how
the potato is used after harvest.
As mentioned, foodservice bolstered
the utilization of potatoes in FY22.
Potato sales to foodservice grew 11.9%
(1,963 MM lbs.). It was the only channel to
grow this past year. Retail sales declined
3.1%; however, compared to two years ago,
retail sales were only down 0.6%. Exports
were down 2.3% in FY22, while imports were
up 8.7%. When calculating the utilization of
U.S. potatoes, imports are deducted to
ensure we're only measuring the U.S. crop.
The share of volume sales by form remained
similar to the previous year: 39% of potatoes
sold were frozen, 26% were fresh, 22%
were chips and 7% were dehydrated, with
smaller categories making up the remaining
6% of sales.
Let's look at all potato sales in the U.S.
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during July 2021-June 2022. The following
data includes imported potato products, but
excludes U.S. potatoes exported to other
countries. This analysis shows how many
potatoes were sold for consumption in the
United States.
This past year, 54% of potatoes were sold
to foodservice. This increase is a significant
change from the prior year when sales were
balanced between retail and foodservice -
however, the sales of different forms varied
by channel. The majority of fresh potatoes,
56%, were sold at retail, whereas the
majority of frozen potatoes, 83%, were sold
at foodservice. All forms of potatoes sold at
foodservice grew in FY22, whereas domestic
retail sales losses were across all formats.
The U.S. sales and utilizatiotn report
uses retail data from IRI and Nielsen/Label
Insights, estimated foodservice sales from
Technomics, and import and export data
from the United States Department of
Commerce.
For more information, please contact Kim
Breshears at Kim@PotatoesUSA.com.
38
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Spudman November/December 2022

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