Weak economy hits US Potato Industry

The outlook for the 2008 U.S. potato crop was just fine until recession reared its ugly head.

The weak economy is reducing demand from restaurants because people simply aren't eating out as often, industry officials said this week during the 2009 national Potato Expo in San Antonio.

Potato farmers hope that grocery store sales and an increase in home cooking will make up for some of the lost restaurant business, but that's not a slam dunk at this point.

Sales of frozen potato products started to fall off on the food service side last fall, processing industry executive Mark Hayden of ConAgra/Lamb Weston told producers Thursday, Jan. 8.

The retail end held up pretty well until December, when it rolled over too, he said.

"December was just awful across all channels,"he said.