Canada: Manitoba potato industry fears big losses as companies cut orders

The Manitoba potato industry — from seed producers to those who grow the main crops — is scrambling to adjust to news that the companies they supply are slashing orders, leaving them facing potentially huge losses.

"I know there’s some seed growers that are gonna get hurt a lot worse than others," said Mark Peters, who owns Spruce Drive Farms just north of Portage la Prairie, where he grows around 80 hectares (200 acres) of seed potatoes, but calls himself "pretty small" in comparison to other farms in the province.

"Definitely some of the larger seed growers, they’re going to be probably losing at least $1 million, maybe more, [worth] of seed that they have in storage that might not have a home."

A seed potato is one that can be replanted to produce a potato crop. Peters sells his to potato growers, who use them to create their yields.

"It was a shock to me, because I was under the impression everything was good. With the weather warming up, we’re able to start shipping our seed to the growers," he said. 

But just as the wheels were set into motion, they stopped. 

"That started here last week on Thursday. [We] got a call Friday saying, ’yeah, we’re gonna have to cut our contract with you by half because we got cut by half from McCains," Peters said.

McCain Foods Limited and  J.R. Simplot Company are the two biggest buyers of potatoes in the province, using them for a variety of frozen potato products that are supplied to grocery stores.

In 2024, Alberta produced 23.7 per cent of Canadian potatoes, followed by Manitoba (21.6 per cent) and Prince Edward Island (20.4 per cent), according to Statistics Canada.

"It’s a big part of our economy. There’s a lot of money involved in the potato industry," Peters said.

’Trying to figure out what exactly is going on’

Producers he has spoken to said the cuts in orders range from 10 per cent to 100 per cent, which creates a trickle-down effect.

"As a seed grower, that means that now you’re going to be stuck with seed that you grew, and that’s another pill to swallow," Peters said.

"So it’s pretty frustrating as a seed grower to try and grow for these [producers] that have promised they want this seed, but then when spring comes and it’s time to take it now they can’t.

"Their hands are tied too, so it is kind of a messy situation."

It’s unclear why the cuts are happening, and whether they’re related to the ongoing trade war between Canada and the U.S., said Peters.