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Eye on Potatoes: A Podcast on All Things Potatoes
Eye on Potatoes: A Podcast on All Things Potatoes
U.S. Potatoes in Mexico: Maintaining and Enhancing Export Market Access
The opening of Mexico to fresh table stock exports has created significant benefits for U.S. producers, Mexican consumers and even Mexican growers as demand for potatoes increases. During Potato Expo 2025, we brought together four industry experts to provide valuable insights on the challenges and opportunities surrounding U.S. potato exports. The episode highlights the 25-year journey to open the Mexican market for U.S. potatoes, demonstrating the collaboration between industry leaders and government officials.
• Overview of the 25-year effort to gain market access
• Strategies by Potatoes USA to educate Mexican consumers
• Differences in consumer preferences and purchasing power analysis
• Challenges in distribution channels and traditional market dynamics
• Importance of consumer sampling and education in driving demand
• Ongoing phytosanitary concerns and mitigation strategies
• Outlook on growth potential and market share for US potatoes in Mexico
Guests:
Kim Breshears, Chief Marketing Officer, Potatoes USA
Kam Quarles, CEO, National Potato Council
Luis Moreno, CEO, Grupo PM
Matt Lantz, Senior Vice President of Global Access, Bryant Christie Inc.
This podcast is possible thanks to our presenting sponsor, Syngenta. Delivering solutions to help producers face the potato industry's complex challenges, Syngenta provides growers with unmatched field expertise along with an array of effective products. Explore syngenta-us.com/spud-doctor to discover solutions for your potato-growing obstacles.
This is the Eye on Potatoes, brought to you by the National Potato Council. The Eye is the place to tune in for conversations with growers and thought leaders on advocacy, production and all things potatoes. Now here's your host, lane Nordlund.
Speaker 2:Hello friends, welcome back to the Eye on Potatoes podcast, lane Nordlund joining you here today. The Potato Expo 2025 is wrapping up here in Orlando, florida. It has been a great show this year Over 2,100 participants traveling down here to the Sunshine State, taking in all the educational sessions, the speakers and, of course, the Expo itself. And I'm excited about our guests joining us here today. But before I introduce them, of course, we just got to give a big shout out to our friends at Syngenta for bringing you today's conversation on the Eye on Potatoes podcast. Well, a topic we have discussed quite a bit here on the show is, of course, opening the fresh access to the Mexican market, and that, of course, has been achieved and a lot of work went into that and a lot of work goes into maintaining that trade relationship. Of course it's a significant benefit for US producers, mexican consumers and even Mexican growers as demand for potatoes increases, and today we brought together four industry experts to provide valuable insights on the challenges and opportunities surrounding US potato exports. So first joining us once again on the conversation is Kim Beshears, with the Potatoes USA serving as Chief Marketing Officer. She's going to share her perspective on marketing strategies and trends and work that Potatoes USA is doing in the Mexican market. Next, cam Corral, ceo of the National Potato Council, will expand on MPC's role in advocating for the industry and joining us all the way from Mexico City. Luis Moreno joining us.
Speaker 2:Ceo of Grupa PM, who brings an international perspective. Luis, it's your first time on thepa PM who brings an international perspective. Luis, it's your first time on the podcast. Welcome.
Speaker 3:Thank you very much.
Speaker 2:And finally, a frequent guest, our friend Matt Lance, senior VP of Global Access at Brian Christie. He's here to address the critical pathways for global market access. So welcome all four of you to the show today.
Speaker 4:Hi Lane. Hello, Great to be here. We are ready.
Speaker 2:And so, Matt, let's just start with you. Let's provide a quick recap of all the efforts that went into opening the Mexican market for US potatoes. What were some of the key milestones? What were some of the maybe the challenges and setbacks that we saw along the way, but all the work to overcome these roadblocks. Let's just do a quick history for maybe someone joining us on the podcast that is unfamiliar with the work that went into this.
Speaker 6:Well, Lane, you're asking me to do a quick summary of basically a quarter century of negotiations and setbacks and successes, but let me hit the highlights. We opened the market in 2003. We had access to the border region and we thought we would have access to the rest of Mexico. That did not happen. Mexico passed some laws to make sure that did not happen. In 2010, we basically had a court case. We had international experts take a look at both of our arguments regarding pests and they came out in favor of the United States side, which allowed for a market access agreement to go into place in 2014. We had access for three weeks in 2014, and then we got hit with a bunch of injunctions called emparos that kept us out of the market for years.
Speaker 6:The real change came in around 2017, 2018. Cameron came in. We started working on the political aspect of this, because this really is a political dispute. The avocado issue was also tied into this. Eventually, we made it all the way up to the Mexican Supreme Court, so our humble potato issue is being decided by Mexican justices. They ruled unanimously in 2021 in favor of our access and then it was a matter of negotiating and getting it opened in May of 2022. Good enough, Cam, for a brief summary of 25 years of work.
Speaker 7:That was very impressive. Yes, that was a whirlwind of over two decades of fighting these battles. Very well done.
Speaker 6:But it's nice to be on this side of the parapet, to actually be in the keep and selling our potatoes throughout Mexico. It's something we've long wanted and we're doing successfully now.
Speaker 2:And, of course, a lot of work, as you mentioned, close to three decades really of the time and effort from Matt's perspective and from Cam and MPC's perspective and work on Capitol Hill and with international teams, and it paves a way for Kim and uh potatoes usa to really look at this market and and reach out to these consumers. And really from your perspective, how has potatoes usa really contributed to building the demand for us potatoes in mexico on the fresh uh table stock end of it and are there some strategies or campaigns that you all have really focused on to grow this demand and really just get more potatoes on dishes down there?
Speaker 4:Yes, potatoes USA has had a long-term relationship with Group OPM. Luis is with us today. His organization has partnered with the US potato industry for several years to promote potato products across Mexico. So when the market opened after the 25-year endeavor to get fresh potato access, they were really well positioned to be boots on the ground, so to speak, and continue to work with importers and distributors to bring the product in and then help to distribute it. And they have longstanding relationships with retailers and consumers in the market. So we partnered with them right away.
Speaker 4:It's the US fresh potato that goes in. Those potatoes that are going into Mexico are quite different than a fresh Mexican potato. So a lot of our work has been around education, and that's educating at all levels, from the importers and distributors all the way down to the consumers, about the benefits and the value that they provide, and Luis and his team have helped us to do a really good job of that. So it's all about education and a lot of sampling, because the product's very different for consumers, especially a Mexican consumer, and they can see the benefits firsthand once they're able to put a wonderful US potato in their mouth.
Speaker 2:So, louise, in your experience, how does the Mexican market differ from the US in terms of consumer preferences, the distribution channels and other key factors, and what are the unique opportunities or challenges is this market going through at present, since it is a new opportunity for US fresh access?
Speaker 3:I think first of all, we need to talk about the issue, that is, the Mexican market is the number one in the world. Okay, we are talking about the high potatoes, frozen potatoes and fresh potatoes In fresh we are not number one, but we will be by far number one in the world. We are over Canada and Japan. The market in Mexico is different and basically, the most important is that price is important for Mexicans. The purchasing power is not like in the US. In the US, we are talking about a very medium-class country with a good purchasing power. The Mexicans don't have this purchasing power and take decisions based on the price.
Speaker 3:It opens an opportunity for agro-growers because sometimes you know, in the production areas you have small potatoes or largest potatoes or different quality grades, and it is an opportunity because these different products have different prices and Mexicans could allow these products. In Mexico, we have from people that pay the most expensive product in the world okay, and people who is trying to obtain a cheap product. You know, an attractive product, a competitive product, and it is a good opportunity for our words because it's a complement with the US market. Okay, that is very, very standard. It is a good with the US market. Okay, that is very, very standard. It is a good opportunity for us.
Speaker 2:Well, and, as you mentioned, the growth opportunity for the fresh potato in Mexico. There's a lot of potential there, but as of the beginning here of 2025, how is it performing and what additional resources could be put forward to really continue to grow that in terms of getting more down there and, of course, being price competitive as well?
Speaker 3:I think we are starting working with the distribution system. It is another important difference with the US. In the US, everything is supermarkets. 90% or more of the distribution in the retail is supermarkets. In Mexico we have a very important traditional market For this. We have to work with the wholesale markets or terminal markets, as you call here More. We have to teach them about this new product, to convince them about this new business opportunity. Normally with them we work and we provide them intelligence, market information. Okay, that they take decisions and help us to buy the product, to import the product and to do the distribution. And after this we go with the retailers traditional retailers and supermarkets. Okay to work and to promote with the retailers traditional retailers and supermarkets. Okay to work and to promote with the consumer because by far our product is better in flavor, but Mexican product.
Speaker 3:Normally the potatoes in Mexico are very white, okay, and when the people see the rosettes sometimes it looks very ugly or unclean. You know unclean. But in this case when the people try US potatoes, okay, when we are running the sampling, they really like it. Besides, we are not trying to face an open competition talking about it. It is a US product. Okay, we are not selling sport shoes, we are selling potatoes and we are based on flavor. Okay, so we show the flavor, when the people see the flavor. Even we are doing sampling, not just for the consumers, it is for the same two. We are doing sampling in the wholesale markets. The medium wholesalers arrive to the market. We offer the market, we offer the product. They see that they have very good flavor and they are transmitting people by people. When they sell to the retailers or the small wholesalers in other cities, they say it's a very good flavor product and it is the way that it's working.
Speaker 3:We, when we started, we started in the second largest city in Mexico, guadalajara, and they told us that it's complicated to sell our product. As soon as we help them with the sampling, okay, we provide a chef. I suppose that was a small, because everybody talks about chefsito. Chefcito means small chef. Okay, with the Chefcito was a success because people arrive, they try the product. When they taste, they like it and they start moving the inventory. It was really good. So we have to keep pushing with them. Okay, and of course, we need the support of the authorities, us authorities, okay, because the Mexican growers are still pushing. You know they are not happy with our product. They are facing competence. In the past they didn't. Okay, it was more comfortable for them and at this moment it makes a great opportunity and we see this game like. The game is starting. You know, if we talk about football, we are just in the first quarter, so we have a lot of opportunity for points.
Speaker 2:I do want to touch on the threats and the issues, matt, I think we can really expand on that. But, kim, just hearing what Luis was just talking about, how do you take the interactions with consumers and the work that Potatoes USA and Luis's crew are doing to really evaluate that and look at these new strategies and make adjustments to that education and outreach on these potatoes? Because when you are used to one type of potato that has grown there traditionally, it's humorous. But that is a hurdle that we have to get over, just based on the different types of potatoes we produce in the US that we have to get over, just based on the different types of potatoes we produce in the US.
Speaker 4:You know, lane, I had the opportunity to go to Mexico just in November and spend a week there. Nothing beats first-hand experience in talking with consumers, talking with retailers, seeing how they buy product, what they're looking for, those insights that we not only gain at Potatoes USA but Group OPM's team and the merchandisers that are out there gain by being in these areas. And learning allows us to constantly enhance our story right, so we can constantly leverage those key benefits that the US potatoes have and the things that Mexican consumers should know about to make sure that they're educated in it. And, as I said earlier, you really can't replicate tasting the product. Our products cook a little bit faster than the Mexican potato and that's appealing to a lot of consumers. And then the flavor profile, the mouthfeel and all of that is there as well.
Speaker 4:So we work with a lot of influencers. We work in-store to do some samplings and a lot of social media as well to get out to consumers so that they really have the opportunity to see and understand and look to other people that they trust and value in-country and see how they appreciate the product and that will just continue to grow. I mean, our distribution has gradually grown since the market opened. Adoption has grown. Obviously it's stronger in the northern regions because there's more familiarity with US products to begin with, but as we go further south in the country there's a lot of receptivity and I am highly encouraged and excited about the opportunity for the US industry.
Speaker 2:Are there any data points that were surprising that maybe you thought obviously you're talking about just that the US potatoes do cook faster. But was there any data points that were just like? We were not expecting this trend in consumer preference?
Speaker 4:I think the objection about the look and feel of the product being so different than the Mexican product took us a little bit by surprise. It may not have taken the team at Grupo quite as much as a surprise, but those of us here in the States who market the product, that that being such an objection but it's overcome. I mean it really is about helping them understand. No, the product's not dirty and yes, it comes in different colors, different color profiles, than they may be used to. But take a taste, see how quickly it cooks or see how effectively it works in your traditional recipes, and it has just led to the adoption of it.
Speaker 2:Well, again we're going to continue our conversation about the fresh market access opportunities for US potatoes in Mexico, but first a quick break to hear from our friends at Syngenta. We'll be back right after this.
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Speaker 2:As we return back today continuing to discuss maintaining and enhancing export market access for US potatoes in Mexico Matt Lance is with us here today and Matt what threats still exist that could really jeopardize our trade relationship for full, fresh access to Mexico? What are you and your team at Brian Christie watching and what are some of the key things that you're cautioning the US industry about?
Speaker 6:I will answer that question in just a second, but beforehand I want to just say, when I hear Luis and Kim talk, as we just did before the break, of everything that's going on and how this market is growing, I'm just so happy. It's like after 25 years, we've planted this seed and it's growing, and you hear about the consumers learning about the product and the taste, feel and how it's spreading. It's just, I mean, it's everything we were hoping for all these years. You know, I'm the trade negotiator, I'm the person, along with Cam, who's working these issues, trying to open this market and then to hand it over to the marketers and the people who know Mexico and to introduce it to the Mexican consumers. It just makes me really proud and really happy that you know all of this effort over all these years is worth it and that's just fantastic. That being said, as Luis mentioned, we have adversaries. We have people who really don't want us there. They don't want the competition, and we have to be prepared for that, because all of this that's growing needs to continue to grow. The longer we are in the market every single day we are in the market the more we are becoming entrenched in the market and the more Mexican consumers are trying our products, and so we have to watch, and the biggest thing we have to watch for as it's been since we opened the market is pest fines.
Speaker 6:Mexico has opened the market. There are some pests on the list that we need to be concerned about. There's some we don't have any issue with whatsoever, but there are one or two that we have and we have to make sure that we are addressing successfully. The quickest way for us to close the market is to send product down that has pests, which would give them a justification to say we're concerned about the quarantine threat of US potatoes and, as a result, we're going to close the market. I will say that we do question one pest in particular on their list and we are going to work to try to get it off the list because we don't think it is concerned, and that panel I talked about way back in 2010,. They also did not think it was a concern. So we're trying to get that off the list and we will feel a lot more secure once we've dealt with that.
Speaker 2:So how do you get that off the list? And we don't. I mean, you did so well, describing 25 years worth of work in about a minute, but obviously it is a complicated process. But how do you and CAM work on that to make sure that you can remove those concerns off of there?
Speaker 6:Science. You basically use science and say this is pest, is not a concern, it is not a concern for consumers, it's not going to be passed into the Mexican potato industry and that is your best argument to use it. And I'll defer to Cam on other angles that we'd want to use to do this.
Speaker 7:Matt is exactly right that the foundation of it has to be science. You have to get the science right. The technical pieces always have to be right whenever you're dealing with a phytosanitary issue, a market access petition. But it often is more than that. You have to get the public pressure right. You have to get the politics right. You have to understand what's going on in the country you're trying to ship to and you know where are their politics at and how can we interact. You know you don't want to be in conflict with. You know ultimately these folks are your customers and you know it clearly was a challenge.
Speaker 7:It was kind of a binary decision previously where you know we had a very entrenched industry there. It just flat out didn't want us there. Now, all the great things that Kim and Luis are doing in the market, clearly we're in there. It's open. We want to deal with issues that are going to come up. We don't want those issues to become showstoppers and obviously our competition would like that manage. This is a little bit more delicate than the very aggressive political strategy that we had to get the market open in the first place and that was a much more rigorous, aggressive, in-your-face type of advocacy campaign because of what we were up against. These are smoothing over the rough edges of some of these FIDO issues. It's a little bit more delicate in nature.
Speaker 6:I would say. I would just add that we have had Mexican officials come look at the US potato industry, audit the program. That was part of the protocol. They had to come and they went to Colorado and they were pleased. They thought we were taking the protocol seriously, we were working hard, we were sending clean product down. They'll be coming back next year to take another look. But I agree with Kim, unlike the really difficult adversarial situation we faced and the pressure we needed, now it is more tactical. Now it is more cooperative about what can we? You know, here's the little thing here we need to deal with. What can we do together to try to address this? We'd like you to work on this. We have requests of them we have. They have requirements on us that we don't think we need and we're asking them to make adjustments. But it is more collaborative than the real hard political fight we had. That's not to say that couldn't come back if they tried to close the market. But right now everyone is trying to make this work and that's greatly appreciated.
Speaker 2:So, looking ahead to the next five years with keep dotting our I's and crossing our T's on the phytosanitary side of things, Kim, I'll start with you. What does the work look like? Where do you hope to see the market be in five years? We're going with Luis and his crew. What are some of the goals from Potato USA's perspective?
Speaker 4:Well, certainly, continuing to do what we're doing and getting to more parts of the country, more customers, more consumers, is paramount to our success and helping them understand there's choice. But we, within five years I believe, we can see the market double in size of exports. We've already seen tremendous growth from where we are. In fact, I was looking at some trade stats from the July to June time frame so July 23 to June 24 time frame Our fresh potato exports to Mexico increased 63% year over year during that year. So we've just seen steady growth and that's just. You know. We're getting into more parts of the country and I would anticipate that growth to continue. But it's about education and consumers understanding what the US potato can bring to their plates.
Speaker 2:A follow-up on that, it's 20% of US potatoes are exported right In some form yes, in some form In some form. So what are the forecasts, though, as we see that, if that doubles, how much more does that bump up the overall potato product exports from the US? Am I throwing too much to optimistic questions there?
Speaker 4:Well, there's a lot that goes into export market and the fresh sector is one piece of it. Mexico, especially due to the proximity to the US, is a really great market for our industry. Other parts of the world and the product mixes that are out there have different conditions in which, so I don't think we can really predict five years out from now because there's a lot of things on the horizon. But I think for fresh potatoes and our exports to Mexico overall whether it's a frozen, dehydrated, finished chip product or fresh potatoes Mexico is a key trading partner of ours and that will continue for sure, and the growth potential is very large.
Speaker 2:Louise, from your perspective on this, where do you hope to see the growth of US potatoes, fresh potatoes in Mexico, and what are some goals that you want to continue to work with with Kim and the team, with MPC as well?
Speaker 3:I think, first of all, we have to consider this In Mexico, the consumption per capita is very low. The consumption per capita is very low. According to the Food and Agriculture Organization FAO we call it in Spanish normally we are the number 108th in the ranking. So it's a lot of space to grow. What I mean? The market will grow and we will increase our market share, but it's a very good opportunity. Besides, yes, we are thinking that we'll be double.
Speaker 3:Okay, you talk about the challenge. That is a different product. Okay, in the US you produce. 70% of the production is rosettes and sometimes rosettes looks a little ugly or something like that and it looks like it's a challenge. I see exactly this other way. It's an opportunity Because if you see Mexicans, we always are very proud Because the Mexican food is flavor.
Speaker 3:Mexicans likes flavor and we are competing with flavor. We have a real product that has a good flavor. So we saw this opportunity. Okay, the challenge is that people arrive, see another kind of product okay, very new for them, it's a new variety. Okay, and when they try, it's a great opportunity. It's a very good change for this one.
Speaker 3:We see a great opportunity with the consumer. You know, because we like flavor and consumer is receiving flavor. It is a base in all our communication. People see and taste the flavor and really like the product. So we see a really good opportunity on that. The Mexican consumers like that and we will go in this trend.
Speaker 3:Okay, because when we start in Mexico, we start importing the potatoes. Okay, we have a more regular supply. It was one of the problems for Mexico. For instance, the consumption per capita is below because lack of product Supply some months very good, sometimes months terrible and the consumer eliminate from the shopping list. If we start sending product from the US to Mexico, we have more stable supply and it will help that the consumers eat more product.
Speaker 3:In the north of Mexico, people in general know the product because they travel to the US. Okay, but we need, as he mentioned, we need to convince the people in the center and the south of Mexico. Okay, and we will have a good opportunity. More consumption and, as you mentioned before, because even for the Mexican growers, I believe that in the future they will sell more product. They have to be competitive. You know they have to have good prices, maybe other varieties or something like that. But the market will grow for everyone, not just for important products, okay. Besides, something that happens about two years ago in Mexico is the government is very concerned about inflation. You know it's something that we are. You are suffering in the US too, and when they talk about inflation, they eliminate some taxes and regulations for products, including potatoes. Okay, because they want more product, more supply of products, because it will help to the inflation and help to the Mexicans in general to eat better.
Speaker 2:And, matt, from your perspective. I love that you shared your personal feelings about this, that you're happy to see this, because you put a lot of blood, sweat and tears into this project. And again, phytosanitary aside, where do you want to see this market in five years from your perspective, in your work in helping trade deals come to fruition?
Speaker 6:Look, I love potatoes and I love Mexico, and I would like to see Mexican consumers enjoying our potatoes, because I enjoy them every day. Us consumers do. They should have that opportunity as well, because they're going to love them. We already see that happening. I hope Kim's right. I hope it's already become our largest fresh potato export market in the almost two years we've had it open. Think about the potential. So I would love to see that happen and we'll continue to guard the gates and make sure that we keep the market open. On behalf of the US potato farmer.
Speaker 2:Kim same question.
Speaker 7:I think Matt said it very well it's really gratifying to engage in an effort of this magnitude and have it generate results that mean something for growers and certainly for Mexican consumers as well. Our next big battle is Japan. Our next big market access battle is Japan, and I think the credibility that we have built, not only on this issue but a number of them, but most recently on this issue, how far ahead of schedule I think we are on the estimates of the growth of this market, even though there's a heck of a lot more growth to happen. I think that just reinforces, when we take on new market access petitions, that the US potato industry means what it says and can execute and justify the strength of the US government having to go in and open these markets. They know that ultimately the benefits are going to result.
Speaker 2:Well, again, it is exciting to talk about the access and again I've only had five years of talking about the work that's gone into getting the fresh access into Mexico. But it's so much fun to be able to talk about this in person and look at this success and know that there is still work to be done. So I just want to thank you all for joining us here today, and we'll continue to talk about the success down the road. I know we will. So thanks for joining us.
Speaker 3:Thanks, Lane. Thank you very much Thanks.
Speaker 2:All right friends. Thanks for joining us here on the Ion Potatoes podcast. I'm Lane Nordlund. We'll catch you next time.
Speaker 1:Thanks for tuning in to the National Potato Council's Eye on Potatoes podcast with host Lane Nordlund. For more information, visit nationalpotatocouncilorg. And make sure to subscribe to the podcast today.