Potato Procurement Intelligence Report 2025-2030

Potato Demand Overview

The potato procurement market is further buoyed by the increasing global population, dietary changes, and consumer preference for processed potato products. Key growth drivers of the industry include increasing demand for convenience food, fast-food industry growth, and agricultural technological advances that boost potato production while cutting down production cost. 

The increase in preference for organic produce and local sourcing is also strongly contributing to the growth of the market as per the potato procurement report. With a well-established market, new growth opportunities are opening up with innovation in potato-based food products and their nutritional benefits. Asia-Pacific and Africa have great prospects for growth, while Europe and North America are still dominant regions in the production and consumption of potatoes.

Moreover, according to the potato procurement report, on the supply side, the market expansion is expected to face a series of hurdles, including vulnerability to climate change, pest and disease attack that block potato yield, and variable prices of inputs, such as labor, fertilizers, and water, that disrupts the supply chain. 

Potato Cost Structure

As per the potato procurement report, key factors driving the cost modeling of production is influenced by several key factors, including the cost of seeds, land, fertilizers, labor, water, and energy. Potato production requires intense labor. Hence, the pricing models in the market is determined mainly by labor costs which can vary significantly depending on the region. Fertilizer and pesticide prices are particularly impactful on the overall cost, as potato farming heavily relies on chemical inputs to control pests and ensure a good yield.

According to the potato procurement report, water usage is another critical factor to consider. This is because potato farming requires substantial water. Transportation costs also add to the entire cost structure because potatoes are perishable and must be properly transported to avoid spoilage, primarily when they are transported over long distances. Storage costs can be quite staggering, mainly when stored for potatoes that have undergone some form of processing, as they need refrigeration in order to maintain freshness.

Potato Pricing Trends

Pricing strategies, according to the potato procurement report, are influenced by various aspects such as crop yields, input costs, and consumer demand-oriented changes. Drastic alternations, can be however, caused by environmental or economic factors, which can lead to price volatility. For example, bad weather like drought or floods causes a decrease in harvests, leading to a drop in supply and price hikes. On the other hand, when there is a good harvesting season, and when supply surpluses exceed suggested rates, it can lead to a reduction of prices because of an oversupply of potatoes in the market. 

The growing demand for processed potato products, such as frozen French fries and potato chips, is pushing up demand and, thereby increasing prices in the overall market. Additionally, the growing demand for organic potatoes is resulting in increased prices, according to the potato procurement report. However, downturns and price deregulations may reduce demand for high-value potato products, resulting in fluctuation in prices.

Potato Procurement Best Practices

The best practices, as considered in the potato procurement report, include sourcing from reliable producers and ensuring quality while controlling price volatility. In most cases, these take the form of long-term contracts and strategic partnerships with farmers meant to ensure an uninterrupted supply of potatoes. As a result, large-scale buyers, including food processing companies, often invest in advanced supply chain management practices, including forecasted product inventories and on-time delivery systems, as part of their negotiation strategies, to assure that supply is consistent while minimizing waste.

Geographic diversification of procurement regions forms part of an acute strategy to mitigate supply risks arising from stochasticity associated with variable weather conditions, diseases, or political instability. Efficient logistics and storage solutions are vital, particularly for fresh potatoes, as their shelf life is relatively short. Moreover, according to the potato procurement report, the growing focus on sustainability has encouraged buyers in the supply chain to consider environmental-friendly farming methods and the traceability of potatoes in procurement.

Key Players in the Potato Industry

Recent Developments in the Potato Industry

• In November 2024, McCain Foods announced a new initiative to reduce water usage in its potato farms, aiming to improve sustainability in its supply chain by 2030.
• In October 2024, Lamb Weston opened its new production facility in Kruiningen, The Netherlands. This investment increases Lamb Weston’s annual production capacity by 195 million kilos and is intended to support the growing global demand for high-quality frozen potato products.
• In July 2023, the U.S. Department of Agriculture announced funding for research on pest-resistant potato varieties to address threats posed by late blight and other diseases.