U.S. potato exports increased by 4% in volume and 1% in value for the marketing year that ended June 30.

Volume exceeded 1.73 million metric tons while value approached $1.81 billion, Potatoes USA reported Aug. 19.

Potatoes USA is the marketing organization for 2,500 U.S. potato farmers.

International demand returned in 2021 after falling in 2020 on COVID-19 impacts, the marketing group said. But shipping problems and tight U.S. supplies continued to limit exports.

“Basically, we are looking for a continued recovery in exports this coming fiscal year,” Potatoes USA Chief Marketing Officer John Toaspern said in an interview.

He said demand is recovering in many international markets and conflicts over trade policy have eased.

“Another positive aspect is that it does appear European production will be smaller than it was the previous year,” limiting competition, Toaspern said.

Shipping delays, cancellations and increasing costs persist, he said.

“Certainly the resurgence of COVID and the continuing struggle to get that under control could have impacts on demand,” Toaspern said.

The outlook for U.S. potato supplies “has gotten less optimistic due to the hot weather this summer,” he said. “It’s still too early to tell, but it could have an impact on yields.”

Potatoes USA said the 2020-21 marketing year’s export gain was led by a 9% increase in the fresh category, a 10% increase in chips and a 2% increase in frozen products. The categories make up 51% of exports combined. Only dehydrated products declined — by 4%, mainly on labor issues and tight raw-product supplies.

A big gain in frozen exports to Mexico, partly on recovery from an earlier tariff on fries, drove the increase in the category as most Asia markets were held back by shipping challenges.

Fresh-potato exports increased to Canada, the biggest destination. They increased to Mexico but remained limited to a 16-mile border zone.

Potatoes USA said a Mexican Supreme Court decision should help open the country to U.S. fresh potatoes. The late April decision affirmed the right of Mexico’s Ministry of Agriculture to establish requirements for U.S. potatoes.