The potato processor Lamb Weston has now returned part of the potato harvest from 2019 to its suppliers. That reports the newspaper Capital Press. The reason given is that the company does not have the option of storing all processed potatoes.
Lamb Weston himself did not comment on this unusual event. Not only Lamb Weston, but all fry producers in America and Europe are suffering from the poor demand for French fries or other potato products because caterers and fast food restaurants were or are still closed during the Corona crisis.
The listed company Lamb Weston has already withdrawn its profit expectations for the current financial year.
Around 30% of the potatoes that are still in the barns of farmers are no longer being retrieved. In the US state of Washington, around 4 million hundredweights were no longer lost, in Idaho there are 1 million hundredweights and 300,000 hundredweights in Alberta, Canada. In these three surplus regions, the equivalent is 265,000 tons.
The three largest fries manufacturers in America are JR Simplot, McCain Foods and Cavendish Farms.You probably won't follow Lamb Weston's example. But you will not be able to process the surplus of processing raw material into French fries either.
Lamb Weston is the strongest potato processor in the Pacific Northwest. If this market leader cannot process all potatoes, nobody can, writes the Capital Press.
Source
Hansa Terminhandel GmbH