Alberta's potato industry is booming thanks to a global appetite for french fries

Alberta's potato industry is in the midst of a growth spurt thanks in part to a growing appetitein Asia for french fries and hash browns.

The number of harvested acres of potatoes in Alberta has grown about 35 per cent since 2019, according to Farm Credit Canada, and with McCain Foods doubling the size of its potato processing facility near Coaldale, a town in southern Alberta, the sector is expected to grow even more.

"Generally speaking, it's [looking] very optimistic for the sector going forward," said Leigh Anderson, senior economist with Farm Credit Canada, which provides financing to agricultural producers.

The rise of potato production in Alberta, as well asManitoba,is shifting the balance of potato power in this country westward. As of 2022, 45.6 per cent of potato production took place in the Prairies and British Columbia, while 35.7 per cent was in Atlantic Canada and 18.7 per cent in Central Canada, according to Agriculture and Agri-Food Canada.

That year, Alberta even managed to snatch the crown away from Prince Edward Island as the country's top potato-producing province.

The overall economic impact of the sector is now valued at $2.87 billion Cdn, according to analysis from the Potato Growers of Alberta.

Still, as with any agricultural product, the sector faces risk from unpredictable weather patterns and unpredictable consumer preferences.

Industry expanding in Alberta

The rise of Alberta's potato industry picked up in earnest around the turn of the millennium, when rival french fry makers McCain and Lamb Weston set up processing plants in southern Alberta within about 15 months of one another.

New Brunswick-based Cavendish Farmshas also gotten in on the action, buying out rival potato company Maple Leaf Potatoes and spending $430 million to open a newLethbridge potato processing facility,roughly the size of seven football fields. When theplant opened in 2019, it employed 238 workers.

Today, 73 per cent of the acres of potatoesgrown in Alberta are for processing of frozen potato products and potato chips, according to the Potato Growers of Alberta.

(While less significant than the processing side of the industry, Alberta also carries on a brisk business exporting seed potatoes and a small-but-growing industry producingpotatoes for consumers, thanks in part to the expansion of Edmonton's Little Potato Company.)

Rising demand for processed Alberta potatoes has been linked to a growing appetite for these products in Asia, according to the Potato Growers of Alberta. The province is exporting potatoes directly to that continent andto the United Statesto fill some of the need that's opened up as a result of the U.S.sending more potatoes overseas.

"The consumption in Asia and eastern Asia is expected to grow more over the coming years," said Anderson, the FCC economist. "There's lots on the horizon that's good for the sector."

McCain Foods, in particular, is betting big on the future of Alberta potatoes. The Toronto-based manufacturer announced last year it would spend $600 million to double the size of its plant near Coaldale, a rural community about 15kilometres east of Lethbridge.

"The doubling of the McCain's plant is a big deal," said Alison Davie, who grows potatoes as an owner of North Paddock Farms, south of Taber, addingit's an exciting time to be in the potato industry.

"It's an opportunity for farms to expand, [and] it's an opportunity for new farms to come on board."

Weather, shifting tastes pose challenges

Southern Alberta is considered a good areain which to grow potatoes because of its sunny days and cool nights, but the region has also faced persistent droughts in recent years.

The availability of irrigation has meant the sector has been able to weather the hot, dry summers, and the Potato Growers of Alberta says upgrades to irrigation infrastructure will help the sector going forward.

Still, there will be risk in whether "Mother Nature delivers enough rainfall or snowfall through the winter to feed the irrigation canals," Anderson said.

Another challenge to the potato industry could come in the form of shifting consumer tastes.

French fries are popular across age categories and demographics, and have reliably been the top-selling item across Canadian restaurants and food service chains for at least 15 years, said Vince Sgabellone, a food service industry analyst in Toronto with retail analytics firm Circana Canada.

But the taste preferences of GenerationZ, who range in age from about 12to their late 20s,are shifting. An increasingly popular restaurant item today, for example, is the "bowl" a noodle, rice or grain-based dish that doesn't tend to come with a big pile of fries on the side which could be bad news for potato growers and processors.

"What Gen Zs do [is] going to help to define the future of restaurants and french fries for the next 20 years or so," Sgabellone said.

Still, there's plenty of optimism about the future of Alberta's potato industry, perhaps best evidenced by the relative youth of potato farmers, whoare almost a decade younger than the average farmer.

"There's lots of young people coming back to the potato industry where you might not see it in other parts of agriculture," said Davie of North Paddock Farms.

"People are truly excited about coming back because they can see the opportunities in the potato industry."

WATCH | Farm in Lethbridge gives away 100,000 pounds of potatoes:

Lethbridge farm gives away 100,000 pounds of potatoes

2 months ago

Duration 1:57

Nice weather last year made for an abundance of potatoes on the Johnson Taber Corn and Potatoes farm so many they couldn't sell them all.So they decided to give back to the community by sharing free potatoes with all. At a service station east of Edmonton, people filled totes, wagons, and vehicles to the brim.