The 2021 total economic contribution of the U.S. potato sector is valued to be USD100.9 billion, the latest National Potato Council “Measuring the Economic Significance of the U.S. Potato Industry” analysis by Michigan State University’s economists and researchers reveals.

“The contribution stemming from farm production makes up about USD10.8bn. These estimated economic contribution estimates entail USD37.2bn direct economic activity arising from growing, processing, wholesaling, and retailing potatoes and potato products. The remaining USD63.7bn is made up of indirect activity from affected industries and expenditures from household consumption that can be traced back to the activity generated by the potato sector,” the experts wrote in their document.

More than 714,000 domestic jobs are expected to be created by the potato industry overall, of which 405,000 are employed directly in the supply chain and more than 309,000 work in related fields or other companies. The annual gross domestic product (GDP) of the U.S. is increased by USD53.5bn as a result of this employment, which pays about USD34.1bn in wages and salaries. To put these results into perspective, the supply chain for the domestic potato business supports about 0.4% of the domestic workforce in the U.S.

“The Potato Industry is Widespread Across the Country”

The potato industry encompasses a wide range of activities, starting with agricultural production and continuing through wholesale, processing, and distribution to customer purchases of finished products through retail channels or food service providers. Since there are farms and companies in every region of the U.S. that grow, prepare, and sell potatoes and potato products, the potato industry is widespread across the country.

The U.S. is the fifth-largest potato producer in the world, and Americans eat the most potatoes of any vegetable, according to the analysis.

Contracts are most common in the potato processing industry, particularly when it comes to potatoes produced for fries and chips. In 2018, more than two-thirds of the potatoes distributed in the US were processed. Of those, one-fourth were sold to families; the remainder were used for other purposes. The food industry is a particularly significant market for potatoes, particularly in the shape of fries.

Although most of the potatoes produced in the United States are eaten domestically, exports are a significant market for potatoes. Although the United States imports and exports fresh, processed, and products made from potatoes, only 20% of the potatoes produced or processed in the country are exported in either their raw or processed form. Major markets for American fresh and dehydrated potatoes are Canada and Mexico, while significant markets for American frozen potatoes are Japan and South Korea. The majority of potatoes imported for preparation come from Canada. These imported potatoes from Canada may later be shipped as processed potatoes or in products made with potatoes.