While the potato industry has long been acknowledged as integral to P.E.I.'s economy, a new study is showing the public just how important spuds are to the province.
A new economic impact study suggests that potatoes are worth more than $1 billion of P.E.I.'s total yearly economic output. The study says the sector creates more than $245 million in household income and employs about 8,283 full-time equivalent jobs annually, both directly and through spinoff effects.
P.E.I. Potato Board general manager Greg Donald said the study, which was released during the P.E.I. Potato Technology Expo which wrapped up Saturday in Charlottetown, validates the arguments how important spuds are to the Island.
"I think, in general, Islanders know how important potatoes are to P.E.I. This study really validates that," said Donald. "And some of the results, even to us in the business, were surprising."
The statistics show the potato industry represents about 12.1 per cent of the total provincial employment and 10.8 per cent of the total provincial GDP.
Ray Keenan, of Rollo Bay Holdings, has known for a long time from first-hand experience how dependent the province is on the industry.
He said that the study confirms what many in the industry had believed and gives strong evidence to the government for supporting the sector.
"It gives the government an idea of the (industry's) importance in this province," he said. "Often we see government going abroad to draw industries to the province. This is a huge industry that we already have here on P.E.I."
The potato board press says while farmers recognize diversification as being important in agriculture, one of P.E.I.'s primary and traditional industries is still a major driver of the provincial economy with Islanders needing to help support the sector.
Donald said the economic study put the importance in more familiar terms to the average Islander than the usual numbers from production and farm gate value.
The impact study had funding assistance from the provincial agriculture department. The study looked at the actual business of growing potatoes, as well as backward linkages to farm suppliers and forward linkages to those involved in packaging, processing and transporting the crop.
The study was conducted by the local office of the BDO accounting firm, which outsourced the research to Canmac Econmics, a consulting firm in Halifax.
The study model used to calculate the economic value was similar to ones used in other economic impact studies and estimated the spinoff effect on the Island economy.
Apart from showing hard numbers, the study could also have some eventual implications on the total industry.
With the potato industry relying on rotation with other crops, Keenan said the study reinforces the traditional style of agriculture on P.E.I., noting the recent loss of the Island's hog industry and the government's need to invest back into rural communities.
"Potatoes are grown in the country, not in downtown Charlottetown or Summerside," said Keenan. "When you look at the wealth of these potato fields that go into the city... we need to reinvest in our local rural communities."
Donald added that the study can provide the industry with some management insight.
"If you can't measure, you can't manage," he said. "We need to look at what we have to do to say competitive and insure long-term viability."
Donald added that the study looked at the importance of the crop to other provinces when compared to P.E.I.
"There's no other province that even compares to P.E.I."
