Sunday, April 09, 2006

Japan Opens Wide to U.S. Spuds Again

Japan is now allowing the import of fresh U.S. potatoes. Japan put the ban on fresh U.S. potatoes because of diseased and pests. Since the U.S. eliminated the diseased, Japan lifted the ban. Now, the U.S. will be allowed to ship fresh potatoes from February to June under the new trade agreement to Japan for potato chip production. This is very good news for potato farmers who have been struggling in past years due to America's sliding prices and low-carb diets. Potato farmers from 14 states in the U.S., including Washington, Idaho, and Oregon will be allowed to trade to Japan, which together produce about 60 % of the nation's potato crop.
As was mentioned in the article, this trade agreement will be very profitable for potato farmers. Expansion of the potato market overseas will benefit the farmers since demand for potatoes has decreased in the U.S. because many Americans have become more health conscious over the years. More potato exports from the U.S. might result in a decrease in the supply of potatoes available to U.S. consumers, which will, as a result, increase demand along with the price, and doubly benefitting potato farmers. While potato consuming Americans might not be thrilled with the price increase, potato chip lovers maybe won't mind quite as much.

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