Potato seed producers in the Portage la Prairie area are expressing deep concern over the recent wave of cancelled orders. While the exact cause remains unclear, some are pointing to U.S. tariffs as a possible factor.
Larger potato growers could be facing losses of up to $1 million in seed sales. These farmers supply the seed potatoes that other producers rely on to grow their crops.
Industry voices growing concern
Keystone Agricultural Producers president Jill Verwey says her organization is working with producers to bring attention to the issue.
"Tariffs are trickling down and affecting all sectors," notes Verwey. "With large percentage being exported to our trading partner to the States, certainly the potato industry is -- and Manitoba specifically is -- feeling that significant, I think, impact from from the fallout."
She adds the province has also been engaged in discussions.
"With that date coming just around the corner is top of mind of all producers and it's certainly affecting all sectors. With further impact, if there's any counter tariffs, then that's going to affect all of us here with the inputs. And supplies that we buy, we're going to be as purchasers of goods that are coming from the state."
Local MLA weighs in
Portage la Prairie MLA and Provincial Ag Critic Jeff Bereza, who spent seven years in the potato industry, says he’s well aware of the scope of the problem.
"It's a little bigger than the seed potatoes because the seed potatoes, of course, were grown this past season and are grown out into the processing potatoes for this spring. With a reduction in the seed potatoes also comes a reduction in the potatoes that will be processed as well."
He says the issue runs even deeper, pointing to U.S. economic conditions and political changes.
"If you look at what President Trump is doing in the U.S., they're cutting jobs like nobody's business. Those people that have lost their jobs won't be able to eat out. The other thing is the tariffs play into this as well."
Ripple effects across agriculture
Bereza says the impact goes far beyond just the seed growers.
"If we look in Portage la Prairie, we've got fertilizer companies like Portage Agri-Sales or Shur-Gro Farm Services. We've got a large aerial applicator with Jonair. Those guys are all involved in the potato business. There are lots of agronomic services that are affected, too. This could have a a real trickle-down effect to much more than just the seed potatoes."
While Bereza has spoken with companies like McCain and J.R. Simplot, he says it’s not yet clear whether they are behind the cancelled seed orders. But if major processors are pulling back, he says, the economic impact is inevitable.
A call for stronger government action
He’s urging the province to take immediate action.
"I've been really pushing on the AG Minister of what this provincial government is going to do about this. We've known about these tariffs and I've talked to him since before the U.S. election about these tariffs. We should be looking for other markets. The U.S. has come out and is not very friendly to Canada on a lot of fronts here."
Bereza says the responsibility lies not just with the Minister of Agriculture, but also with those overseeing trade.
"It's the government's responsibility to help the farmers out, but also to try and look for new markets, whether it's our Agriculture Minister or our Minister of Trade. We can do our part, as well, a little better, I would say."
Beyond potatoes: a wider trade concern
Bereza notes the problems aren't limited to potatoes, referencing China’s tariffs on canola oil and meal.
"There's a lot of our agriculture industry that is under attack and we have to find ways to resolve this. The federal government and the provincial government is talking about AgriStability. The problem is with that is it's nothing more than an election promise right now."
He warns the program’s future remains uncertain depending on the outcome of the next federal election.
"The Liberals made that commitment on the federal side of things. But if the Liberals don't get in, I'm not sure what happens with AgriStability. We've got to come out with some solutions and some plans and move forward with them so that these farmers aren't impacted."
Bereza stresses that potato growers have made significant investments in specialized equipment and storage, and that the consequences run deep.
"This goes a lot deeper and it's the same thing with canola. The Chinese aren't going to be buying our canola oil and canola meal. If we looked at other countries to sell this to; we need to be better prepared for situations like this."