The big price gap between small and large russets isn’t going away anytime soon, grower-shippers said.
On Feb. 3, the U.S. Department of Agriculture reported prices of $14 to $14.50 for 50-pound cartons of Idaho russets 40-70s, up from $8 to $8.50 last year at the same time.
By contrast, size 90 russets were $7, down from $8 $8.50 last year.
“I don’t remember a time like this before,” said Mike Carter, CEO of Rosholt, Wis.-based Bushmans’ Inc. “It’s pretty unusual.”
The cause is a dearth of large Idaho potatoes. Once Mother Nature told potatoes to stop growing last year, they obeyed, said Kevin Stanger, senior vice president of sales and marketing for Idaho Falls-based Wada Farms Marketing Group LLC.
“With the rain we had late in the summer, it just kind of turned the crop off,” Stanger said.
The main effect of the sizing issues in Idaho is the large number of consumer bags that will need to be marketed for the remainder of the year, said Randy Shell, vice president of marketing and new business development for RPE Inc. in Bancroft, Wis.
“Retailers will see prices that will be promotable for the remainder of the season on 5- and 10-pound bags. For foodservice and bulk retail, large russets will continue to be in tight supplies and prices will likely continue to rise into the summer.”
Wisconsin’s size profile this season is actually the exact opposite, Carter said, with big spuds taking up a bigger slice of the pie than usual. “I can’t say we’re disappointed with the current market.”
Stanger said that because of the size profile of the 2015 crop, Wada Farms has been moving more potatoes in 10- and 15-pound and other sized bags. “We have to drum up demand for small potatoes, which we’re accomplishing. Right now they’re a good buy for consumers, and I think they’re moving well.”
Demand was “right where we expect to be” in early February, Carter said.
Both Carter and Stanger reported good quality and few storage problems, and said that despite the lack of large potatoes nationwide, there should be enough to get through the summer before the 2015 harvest begins. The price gap between big and small spuds should remain about what is has been, they said.
“The cellars are full, and the profile won’t really change,” Stanger said. “It will remain tight, but I don’t think we’ll run out.”
Source: The Packer