On May 1, 2022, Idaho potatoes became the first U.S. spuds across the southern border under a new trade agreement that opened up all of Mexico for fresh American tubers.
It was a moment 25 years in the making, after the two countries reached an agreement late in 2021 to expand market access for U.S. potatoes. For decades, Mexico had pointed to pest control concerns as the reason behind its ban on fresh U.S. potato sales everywhere in the country except for a 26-kilometer border region. A Mexican Supreme Court decision in April 2021 paved the way for the new trade agreement, which permits fresh U.S. potatoes in any Mexico municipality with a population of 100,000-plus people.
“Of all the U.S. potato producers, Idaho is almost the furthest away from Mexico, yet we were the first ones into the country with shipments of fresh potatoes when the market opened up. That speaks to the importance of our Idaho Potato Commission marketing programs in Mexico,” said Ross Johnson, IPC vice president of retail and international. “Because we already had contacts and connections in Mexico, our relationships meant that we were ready to go.”
IPC marketing director Ines Masallach Armijo, who is based in Mexico, added that the Idaho potato will enjoy a natural advantage in the expanded market because of its strong branding. “The excitement is already there, and we are working with our partners to make sure we have the right supply for our retailers in Mexico,” she said.
The springtime border opening was well-timed, said Masallach, because it was the end of spud season, so potatoes didn’t flood the market. “We were really able to show our partners what the last weeks of the potato harvest are like,” she said. The supply shortages later in the summer also limited the initial sales expansion, added Johnson, but Idaho shippers still have been able to increase the number of sales points for distribution.
“When we do have a bigger crop, we’ll be ready because we will already have relationships in place throughout Mexico for distributing the potatoes,” Johnson said. “Idaho potatoes are famous because we are the only state that can offer more than just the product. Our partners appreciate the plethora of options when it comes to marketing expertise to help increase sales.”
Fresh Opportunities
Mexico was the second-largest market for U.S. fresh potato exports in 2021 —124,449 metric tons valued at $60 million — even with the previous 26-kilometer border region restriction. The U.S. potato industry estimates that the expanded access to all of Mexico will provide a market potential of $250 million per year for fresh U.S. spuds, in five years.
“It’s great that we are finally experiencing what it means to have the border fully open,” said Masallach. “When we had Idaho potato marketing programs only in the Mexican border states, we saw many opportunities for growth that we couldn’t tap yet. Now that we’re way past that 26-kilometer line, the only way we can go is up.”
Masallach said that in the Mexican border states where Idaho potatoes are well-established, Mexican consumers are quite familiar with russet potatoes, which now outsell white potatoes there.
“As you go farther south in Mexico, the number of potential customers is incredible, but these consumers are not used to russet potatoes,” she said. “There’s still a lot more education that needs to be done about what a russet potato is — why is it that color and texture? How is it grown? And more importantly, what kinds of dishes can you use it in?”
Idaho Potatoes 101
Educating both retailers and consumers about why Idaho potatoes are a cut above is the goal of IPC marketing programs designed especially for the Mexico market, said Masallach.
“We are working with retailers through produce managers, showing them how this is another opportunity to sell even more potatoes,” she said. “We have a program similar to the U.S. Idaho Potato Lovers campaign where we encourage retailers to create attractive displays to capture shoppers’ attention and spark their curiosity about Idaho potatoes.”
The most famous potato in the world is now coming to Mexico is the theme of IPC’s Mexican consumer marketing programs, which focus on the potato’s nutrition, its versatility and its Idaho roots. Social media campaigns have been especially important, said Masallach, because most Mexican consumers will go online to find out more about a food that is new to them and how to prepare it.
“We are partnering with key opinion leaders like Mexican racquetball champion Paola Longoria, the most successful international racquetball player in history,” said Masallach. “She promotes healthy and natural eating, she loves potatoes, and she has been traveling with IPC mascot Spuddy Buddy all over the world. She is wonderful at communicating to consumers what makes the Idaho potato so special.”
Mexican chefs who cook with Idaho potatoes also are helping to boost visibility for the brand among diners, said Masallach. “Some of our best advocates are the chefs,” she said. “They have been introduced to Idaho potatoes in the United States or in other parts of the world when they are working there or visiting as tourists. Their leadership can help drive retail sales because Mexican consumers are eating more at home and experimenting with replicating restaurant recipes for their families.”
Consumer education is especially important for the Mexican market, said Johnson, because the new trade agreement specifies that U.S. fresh potatoes can be sold only in bags, not in bulk as local potatoes are purchased in Mexico.
“Mexican consumers don’t get to touch the Idaho product, so we have to persuade them to buy five- to 10-pound bags,” said Johnson.