Does the potato board see itself as a product development organization?
The downturn in the global economy is eroding demand for agricultural products in some important export markets. While consumer spending on food and agricultural products is expected to stay steady in the United States and Europe for 2009, the rising value of the U.S. dollar and decreases in national gross domestic products could adversely affect fresh and processed potato exports, according to USDA’s Economic Research Service (ERS). The 2009 forecast for horticultural products is expected to be $21.5 billion, an increase of $700 million from 2008. That’s mostly the result of higher prices, because sales volume is expected to be flat. A growth rate of 3 percent is the lowest in the last seven years “by a large margin,” according to ERS. The markets most affected by the downturn in the economy will be exports to Canada, Japan and Korea – but those losses should be offset by increased exports to Mexico, China and Taiwan. The export forecast for fresh fruits and vegetables is expected to
