US Sweet Potato Traders Target EU to Boost Export Revival

In recent years, the United States (US) sweet potato sector has focused on the European Union (EU) as a key market for export growth. Amid fluctuating trade dynamics and the introduction of new varieties, like Purple Splendor developed by North Carolina State University, US traders are strategically positioning themselves to profit from Europe's expanding demand for sweet potatoes.

Figure 1: US Sweet Potato Export Volume 2019-2023

Source: Tridge

In 2023, US sweet potato exports to the Netherlands rose by 16.05% year-on-year (YoY), climbing to 92,922 metric tons (mt), a record from the 2019 to 2023 period. On the other hand, exports to the United Kingdom (UK) have been going down since 2020, with a whopping 37.37% drop to 51,491 mt in 2023. Pandemic logistical constraints and the strong US dollar were the main reasons for the decline of UK-bound shipments. The US' second most important market, Canada, has gradually increased its import of sweet potatoes from 2019, although in 2023, it diminished slightly by just 843 mt to 84,602 mt.

The discovery of a new purple sweet potato cultivar has the potential to increase US exports to Europe significantly. Between 2007 and 2017, there was a considerable increase in the export of sweet potatoes from the US to Europe. With its distinct appeal, this new sweet potato cultivar could boost US exports to the EU, capitalizing on the continent's growing interest in different and nutritious food options.

However, to achieve significant export growth, certain regulatory challenges need to be overcome. The EU imposed a temporary 25% levy on US sweet potatoes from Nov-20 to Mar-21, leading US growers to scale back operations.

Additionally, North Carolina, a primary sweet potato-producing state, faces hurdles when exporting to Europe. Despite excellent sweet potato crop quality, exporters from the state face difficulty meeting the European market's needs and requirements. Furthermore, exports to the EU have been impeded by the strong dollar and high sea freight costs, with current shipments trailing last year's data.

Despite these challenges, production setbacks in Europe are expected to sustain the demand for US sweet potatoes. Cultivating high-quality sweet potatoes in Europe presents its own set of challenges, from water scarcity to the need for advanced storage technologies. As a result, imports have become essential to meet the demand and ensure a consistent supply of high-quality sweet potatoes. Despite these hurdles, the trade value of sweet potatoes in Europe has surged by 53% over the past five years, with imports from developing nations skyrocketing by 161%.

In conclusion, the US sweet potato industry faces significant obstacles in expanding exports to the EU. However, the introduction of new varieties and the growing demand in Europe offer a glimmer of hope. The key to unlocking this potential lies in strategic adjustments and overcoming the logistical challenges. These actions are not just important, but crucial for US dealers to seize the opportunities in this promising market.