Potato prices back off (LW)
Prices for Russet potatoes have fallen since peaking in early September. Potatoes USA said all potatoes have been strong, including fresh, dehydrated, frozen, and refrigerated. Quick service restaurant demand was described as vigorous, with frozen fry demand exceptional.
The USDA reported that fresh potato shipments for the week ended November 20 were down about 6%. The USDA’s shipment report indicated season to date movement of Idaho fresh potatoes was down 15% compared to the same date a year ago. The shipping point price for Idaho russet potatoes for two common sizes was up 74% and 100% in late November compared to the prior year. The potato processors have long-term contracts with the farmers. Therefore, spot prices do not indicate the overall costs to the processors, but the additional price supplies could be purchased. The higher prices reflect the heat stress the crops received this summer and strong domestic and export demand seeking additional supplies.
October beer shipments tick up (BUD)
The Beer Institute’s unofficial estimate of domestic tax-paid shipments in October increased 1.8%. Year to date through October shipments are estimated to be up 0.7%. October represents a reversal in the trend of declines in July through September. Supplies will need to increase through the end of the year based on inventory levels.
Alcohol imports (STZ)
Total alcohol beverage imports grew 18% by value over the last 12 months ended October. Over the last three months, imports were up 7% by value. 35% of all imported beverage alcohol by value came from Mexico over the last 12 months. Total beverage alcohol exports grew 4% by value over the last 12 months and grew 9% over the last three months. 28% of all exported beverage alcohol by value went to Canada over the last 12 months.
Imported beer grew 13% by volume and grew 16% by value over the last 12 months. Over the last three months, imports declined 1% by volume and grew 1% by value, decelerating from +1% and +3% respectively in the three months ended September. 75% of imported beer by value comes from Mexico. Exported beer grew 20% by volume over the last 12 months and grew 62% by value. Over the last three months, exports grew 11% by volume and grew 22% by value. 25% of exported beer by value goes to Chile. Constellation Brands represents a majority of Mexican beer imports and 60% of imported beer. The latest three months indicate decelerating volumes and growth in price/mix.
Imported packaged wine grew 16% by volume and 24% by value over the last 12 months and 8% by volume, and 23% by value over the last three months. Imported packaged spirits grew 16% by volume and 21% by value over the last 12 months. Over the last three months, spirits volumes declined 1% by volume and grew 8% by value. 35% of all imported packaged spirits by value come from Mexico, while 19% of all exported packaged spirits by value goes to Canada.
