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International Year of the Potato 2008
The global potato economy
World potato production 1990-2006 200
Ad valorem import tariffs are used Developed countries Developing countries to protect domestic potato markets. Other
China and India now account for of 30processed percent products Imports and exports now dominate world potato trade of world potato output Russian Russian Global potato trade volume (tuber equivalent), Federation Federation USA 13%1986-2005 11% USA 6% 7%
million tonnes
EU 29%
EU 20%
25
processed volume
fresh volum
20
others* 30%
100 15
India 6%
China 15%
China 22%
10
Major producers, 1992/94 (av.)
Major producers, 2003/05 (av.)
5
2002
2001
2000
1998
1997
Developing countries
1996
Developed countries
* including Ukraine, Belarus, Canada, Islamic Republic of Iran, Turkey, Bangladesh, Peru, Brazil 0 1995
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
1994
0
1993
50
others* 33%
India 8%
1999
150
Despite its importance as a staple food and in combating hunger and poverty, potato has been neglected in agricultural development policies for food crops
0 Trade policies 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 200
1992
Developing countries are net importers in international potato trade, which in 2005 was estimated to be worth US$6 billion.
Potatoes are commonly regarded as a bulky, perishable commodity with high transport costs and limited export potential, confined mostly to cross-border transactions. These constraints have
World potato production International trade in 1990-2006 potatoes and potato products still remains thin 200 relative to production, as only around 6150percent of output is traded. High transport costs, including the cost of 100 refrigeration, are major obstacles to a50wider international marketplace.
1991
In international trade, both the value and volume of traded processed products far outweigh trade in fresh tubers
not hampered the international potato trade, which has doubled in volume and risen almost fourfold in value since the mid-1980s. This growth is due to unprecedented international demand for processed products, particularly frozen and dehydrated potato products. To date, developing countries have not been beneficiaries of this trade expansion. As a group, they have emerged as leading net importers of the commodity.
1990
Global consumption is shifting from fresh potatoes to addedvalue processed products
Fresh potato consumption, once the mainstay of world potato utilization, is decreasing in many countries, especially in developed regions. Currently, more potatoes are processed to meet rising demand from the fast food, snack and convenience food industries. The major drivers behind this development include growing urban populations, rising incomes, the diversification of diets and lifestyles that leave less time for preparing the fresh product for consumption.
In 2006, the world produced some 315 million tonnes of potatoes. Photo: © FAO
1989
Subsistence potato growing in developing countries is declining as producers reorient toward domestic and international markets
In 2005, the developing countries’ share of global potato output stood at 52 percent, surpassing that of the developed world. This is a remarkable achievement, considering that just 20 years ago the developing countries’ share in global production was little more than 20 percent. Even so, world potato production and consumption are currently expanding more slowly than the global population.
1988
In 2005, for the first time, the developing world’s potato production exceeded that of the developed world
Commonwealth of Independent States, has declined on average by one percent per annum over the past 20 years. However, output in developing countries has expanded at an average rate of five percent per year. Asian countries, particularly China and India, fuelled this growth.
1987
Key points
Potato production in developed countries, especially in Europe and the
1986
Developing countries are now the world’s biggest potato producers – and importers – and consumer demand is shifting from fresh tubers to processed products
Countries wishing to supply potato commodities to the international market – especially to the more lucrative developed country markets – also face
About IYP 2008 The International Year of the Potato, to be celebrated throughout 2008, aims at raising global awareness of the potato’s key role in agriculture, the economy and world food security.
Credits: Information provided by the Trade and Markets Division, FAO.
20
-2 -3 -4
WTO Bound Tariff (%) Product
Trade Weighted Average
Maximum
Fresh potatoes (inc. seed)
29
378
Frozen potatoes
16
414
Potato flour*
38
446
Potato starch
109
550
* includes flour, meal, flakes, granules and pellets
Contact: International Year of the Potato Secretariat Food and Agriculture Organization of the United Nations Room C-776 Viale delle Terme di Caracalla 00153 Rome, Italy Tel. + (39) 06-5705-5859, 06-5705-4233 E-mail: [email protected]
2004
2003
1999 2003 2000 2004
1997 2001 1998 2002
1995 1999 1996 2000
1993 1997 1994 1998
1991 1995 1992 1996
Potato’s positive attributes, particularly its high nutritional value and potential to boost incomes, have not received the attention they deserve from governments. The lack of established marketing channels, inadequate institutional support and infrastructure, and restrictive trade policies are impediments to commercialization of the sector. National and international stakeholders need to place potato higher on the development agenda.
2005
2004
Potato potential
2003
2002
2001
2000
1999
1998
1997
1996
1995
1986
2005
2004
2003
2001 2005 2002
1999 2003 2000 2004
1997 2001 1998 2002
-5
-5
2001 2005 2002
20
20
20
20
20
19
19
19
19
19
19
19
19
19
19
19
19
considerable hurdles in the form of food Net trade position of developing countries continues to deteriorate health standards and technical regulations. Potato net trade (exports-imports) The Doha Development Round of in tuber equivalent, 1986-2005 trade negotiations recognizes the million tonnes 5 developing negative impacts of tariffcountries escalation 4 developed countries 3 and contains important provisions 2 1 aimed at ensuring that standards and 0 regulations-1 do not become de facto -2 barriers to-3trade or hidden protectionist -4 policies, while at the same time putting -5 public health concerns foremost. Unfortunately, negotiations pertaining to the Doha agenda have suffered a series of setbacks, and agreement on a final solution has yet to materialize. 1994
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
2005
4 500
www.potato2008.org
0
1993
million US$ freshpotatoes value processed value Import tariffs on and potato 4 000 3 500 products are applied by most countries. 3 000 The binding rates agreed under the 2 500 2 000 aegis of the World Trade Organization 1 500 vary 1 000considerably. Potato provides a 500 classic example of “tariff escalation”, 0 where importing countries protect processing industries by levying higher duties on processed products than on raw material. By preventing countries from diversifying their export base into higher-value processed products, tariff escalation can therefore keep them “trapped” as providers of raw material.
-1
-4 1995 1999 1996 2000
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
policies that restrict access to markets Global transactions worth close to US$6 billion, driven by processed include sanitarypotatoes and phytosanitary Global potato trade value, 1986-2005 measures and technical barriers to trade.
0
-1
-3
500
0
1
0
-2
1 000
500
0
1986
1 500
1992
1 000
1991
1 500
5
1990
,) 1992/94 (av.) Major producers, Major2003/05 producers, (av.) 2003/05 (av.)
Belarus, Canada, Islamic Republic of Iran, Turkey, nada, Islamic Republic of Iran, Turkey, Brazil
2
1
1989 1993 1990 1994
2 000
2 000
2
1987 1991 1988 1992
2 500
1989 1986 1990
2 500
3
1988
3 000
5
developing developing countries countries 4 developed developed countries countries 3
4
1987
3 500
3 000
1993 1997 1994 1998
10
3 500
5
value fresh valuefresh value processedprocessed value
1989
China 22%
a
4 000
1991 1995 1992 1996
China 22%
4 000
1988
15
4 500
1987
others* 33%
others* 33%
India 8%
million tonnes million tonnes
4 500
1986
20 India others* 8% 30%
million US$million US$ fresh volume
1989 1993 1990 1994
processed volume
1987 1991 1988 1992
20%
1989 1986 1990
20% 25
Net tradeNet position developing countriescountries tradeof position of developing continuescontinues to deteriorate to deteriorate Potato net tradenet (exports-imports) Potato trade (exports-imports) in tuber equivalent, 1986-2005 in tuber equivalent, 1986-2005
1987
others* 30%
EU tonnesEU million
Global transactions worth close to US$6 Global transactions worth closebillion, to US$6 billion, driven bydriven processed potatoes potatoes by processed Global potato value, 1986-2005 Globaltrade potato trade value, 1986-2005
1988
account for 30 percent dia now account for 30 percent Imports and exports of processed products ut ato output now dominate world potato trade Russian sian Russian Federation ation Federation Global potato trade (tuber equivalent), USAvolume 11% USA % 11% USA 6% 6% 1986-2005 7%
19
19
Developing countries
1986
d countries
The global potato economy
World potato production 1990-2006 200
Ad valorem import tariffs are used Developed countries Developing countries to protect domestic potato markets. Other
China and India now account for of 30processed percent products Imports and exports now dominate world potato trade of world potato output Russian Russian Global potato trade volume (tuber equivalent), Federation Federation USA 13%1986-2005 11% USA 6% 7%
million tonnes
EU 29%
EU 20%
25
processed volume
fresh volum
20
others* 30%
100 15
India 6%
China 15%
China 22%
10
Major producers, 1992/94 (av.)
Major producers, 2003/05 (av.)
5
2002
2001
2000
1998
1997
Developing countries
1996
Developed countries
* including Ukraine, Belarus, Canada, Islamic Republic of Iran, Turkey, Bangladesh, Peru, Brazil 0 1995
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
1994
0
1993
50
others* 33%
India 8%
1999
150
Despite its importance as a staple food and in combating hunger and poverty, potato has been neglected in agricultural development policies for food crops
0 Trade policies 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 200
1992
Developing countries are net importers in international potato trade, which in 2005 was estimated to be worth US$6 billion.
Potatoes are commonly regarded as a bulky, perishable commodity with high transport costs and limited export potential, confined mostly to cross-border transactions. These constraints have
World potato production International trade in 1990-2006 potatoes and potato products still remains thin 200 relative to production, as only around 6150percent of output is traded. High transport costs, including the cost of 100 refrigeration, are major obstacles to a50wider international marketplace.
1991
In international trade, both the value and volume of traded processed products far outweigh trade in fresh tubers
not hampered the international potato trade, which has doubled in volume and risen almost fourfold in value since the mid-1980s. This growth is due to unprecedented international demand for processed products, particularly frozen and dehydrated potato products. To date, developing countries have not been beneficiaries of this trade expansion. As a group, they have emerged as leading net importers of the commodity.
1990
Global consumption is shifting from fresh potatoes to addedvalue processed products
Fresh potato consumption, once the mainstay of world potato utilization, is decreasing in many countries, especially in developed regions. Currently, more potatoes are processed to meet rising demand from the fast food, snack and convenience food industries. The major drivers behind this development include growing urban populations, rising incomes, the diversification of diets and lifestyles that leave less time for preparing the fresh product for consumption.
In 2006, the world produced some 315 million tonnes of potatoes. Photo: © FAO
1989
Subsistence potato growing in developing countries is declining as producers reorient toward domestic and international markets
In 2005, the developing countries’ share of global potato output stood at 52 percent, surpassing that of the developed world. This is a remarkable achievement, considering that just 20 years ago the developing countries’ share in global production was little more than 20 percent. Even so, world potato production and consumption are currently expanding more slowly than the global population.
1988
In 2005, for the first time, the developing world’s potato production exceeded that of the developed world
Commonwealth of Independent States, has declined on average by one percent per annum over the past 20 years. However, output in developing countries has expanded at an average rate of five percent per year. Asian countries, particularly China and India, fuelled this growth.
1987
Key points
Potato production in developed countries, especially in Europe and the
1986
Developing countries are now the world’s biggest potato producers – and importers – and consumer demand is shifting from fresh tubers to processed products
Countries wishing to supply potato commodities to the international market – especially to the more lucrative developed country markets – also face
About IYP 2008 The International Year of the Potato, to be celebrated throughout 2008, aims at raising global awareness of the potato’s key role in agriculture, the economy and world food security.
Credits: Information provided by the Trade and Markets Division, FAO.
20
-2 -3 -4
WTO Bound Tariff (%) Product
Trade Weighted Average
Maximum
Fresh potatoes (inc. seed)
29
378
Frozen potatoes
16
414
Potato flour*
38
446
Potato starch
109
550
* includes flour, meal, flakes, granules and pellets
Contact: International Year of the Potato Secretariat Food and Agriculture Organization of the United Nations Room C-776 Viale delle Terme di Caracalla 00153 Rome, Italy Tel. + (39) 06-5705-5859, 06-5705-4233 E-mail: [email protected]
2004
2003
1999 2003 2000 2004
1997 2001 1998 2002
1995 1999 1996 2000
1993 1997 1994 1998
1991 1995 1992 1996
Potato’s positive attributes, particularly its high nutritional value and potential to boost incomes, have not received the attention they deserve from governments. The lack of established marketing channels, inadequate institutional support and infrastructure, and restrictive trade policies are impediments to commercialization of the sector. National and international stakeholders need to place potato higher on the development agenda.
2005
2004
Potato potential
2003
2002
2001
2000
1999
1998
1997
1996
1995
1986
2005
2004
2003
2001 2005 2002
1999 2003 2000 2004
1997 2001 1998 2002
-5
-5
2001 2005 2002
20
20
20
20
20
19
19
19
19
19
19
19
19
19
19
19
19
considerable hurdles in the form of food Net trade position of developing countries continues to deteriorate health standards and technical regulations. Potato net trade (exports-imports) The Doha Development Round of in tuber equivalent, 1986-2005 trade negotiations recognizes the million tonnes 5 developing negative impacts of tariffcountries escalation 4 developed countries 3 and contains important provisions 2 1 aimed at ensuring that standards and 0 regulations-1 do not become de facto -2 barriers to-3trade or hidden protectionist -4 policies, while at the same time putting -5 public health concerns foremost. Unfortunately, negotiations pertaining to the Doha agenda have suffered a series of setbacks, and agreement on a final solution has yet to materialize. 1994
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
2005
4 500
www.potato2008.org
0
1993
million US$ freshpotatoes value processed value Import tariffs on and potato 4 000 3 500 products are applied by most countries. 3 000 The binding rates agreed under the 2 500 2 000 aegis of the World Trade Organization 1 500 vary 1 000considerably. Potato provides a 500 classic example of “tariff escalation”, 0 where importing countries protect processing industries by levying higher duties on processed products than on raw material. By preventing countries from diversifying their export base into higher-value processed products, tariff escalation can therefore keep them “trapped” as providers of raw material.
-1
-4 1995 1999 1996 2000
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
policies that restrict access to markets Global transactions worth close to US$6 billion, driven by processed include sanitarypotatoes and phytosanitary Global potato trade value, 1986-2005 measures and technical barriers to trade.
0
-1
-3
500
0
1
0
-2
1 000
500
0
1986
1 500
1992
1 000
1991
1 500
5
1990
,) 1992/94 (av.) Major producers, Major2003/05 producers, (av.) 2003/05 (av.)
Belarus, Canada, Islamic Republic of Iran, Turkey, nada, Islamic Republic of Iran, Turkey, Brazil
2
1
1989 1993 1990 1994
2 000
2 000
2
1987 1991 1988 1992
2 500
1989 1986 1990
2 500
3
1988
3 000
5
developing developing countries countries 4 developed developed countries countries 3
4
1987
3 500
3 000
1993 1997 1994 1998
10
3 500
5
value fresh valuefresh value processedprocessed value
1989
China 22%
a
4 000
1991 1995 1992 1996
China 22%
4 000
1988
15
4 500
1987
others* 33%
others* 33%
India 8%
million tonnes million tonnes
4 500
1986
20 India others* 8% 30%
million US$million US$ fresh volume
1989 1993 1990 1994
processed volume
1987 1991 1988 1992
20%
1989 1986 1990
20% 25
Net tradeNet position developing countriescountries tradeof position of developing continuescontinues to deteriorate to deteriorate Potato net tradenet (exports-imports) Potato trade (exports-imports) in tuber equivalent, 1986-2005 in tuber equivalent, 1986-2005
1987
others* 30%
EU tonnesEU million
Global transactions worth close to US$6 Global transactions worth closebillion, to US$6 billion, driven bydriven processed potatoes potatoes by processed Global potato value, 1986-2005 Globaltrade potato trade value, 1986-2005
1988
account for 30 percent dia now account for 30 percent Imports and exports of processed products ut ato output now dominate world potato trade Russian sian Russian Federation ation Federation Global potato trade (tuber equivalent), USAvolume 11% USA % 11% USA 6% 6% 1986-2005 7%
19
19
Developing countries
1986
d countries
