Red River Valley potato growers are expecting a good crop with excellent color and quality, a good mix of sizes and average tonnage. The question is, what are they going to get for their efforts?
“Markets aren’t very good,” said Bryan Folson, general manager of Folson Farms in East Grand Forks, Minn. “We’re trying to hang on.”
On Oct. 2, the USDA reported prices of $7.50 to $9 for 50-pound cartons of grade U.S. 1, size A red potatoes from the Red River Valley. Size B reds were shipping for $13.50 to $15.50.
“Does the price need to be higher to make it work for everyone? Yes,” Steve Tweeten, president and CEO of Nokota Packers in Buxton, N.D., said Sept. 24. “It’s too soon to tell what’s going to happen with the market.”
The Red River Valley is the nation’s third-largest potato-growing region—producing more than 40 million hundredweight per year—and the largest producer of red potatoes. It faces competition, however, from places like Wisconsin, Florida and Washington’s Skagit Valley.
For the 52-week period ending July 25, red potatoes contributed nearly 19 percent of total potato dollar sales at retail, down slightly from a year ago, according to the Nielsen Perishables Group. Red potato sales were valued at $446.1 million during that period, a dip of 2.8 percent. That decline occurred because, although volume sales increased 1.5 percent, the average retail price decreased 4.2 percent.
Tweeten said Sept. 24 that weather conditions had slowed down harvesting with temperatures climbing into the 90s. However, what he had seen to that point looked promising with good quality. Yields were above average, he said, which should make up for a high incidence of growth cracks. After those defects are sorted out, Tweeten said, tonnage for the region should be normal.
Dave Moquist, partner in O.C. Schulz & Sons Inc. in Crystal, N.D., said Sept. 24 that his company was two-thirds done with harvest, and he expected to start shipping in mid-October.
“Harvest has gone really well so far,” he said. “Sizing is normal or average.”
Folson said Sept. 24 that his company needed rain before it could complete its harvest.
“Our crop looks decent, but we need some rain to dig,” he said. “We’re caught in between. We’re about 30 percent done. If we get rain in the next few days we can get back on schedule. We’re getting behind.”
Keith Groven, salesman for Black Gold Farms in Grand Forks, N.D., said his company already was shipping in late September. He said storage supplies should last into April. “We enjoyed a fantastic growing season this summer and the yield and quality of the crop is definitely reflecting that,” he said. “We’re seeing both yield and quality coming in above average this year.”
While growers would like to see higher prices, Groven said U.S. Potato Board data indicates demand for red potatoes is increasing.
“We believe that the more consumers learn about the versatility and flavor of red potatoes, the more often they are utilizing them,” he said. “For foodservice, we continue to engage our partners to develop programs and recipes to help grow red potatoes’ share of that market.”
Paul Dolan, president of Associated Potato Growers, Inc. in Grand Forks, N.D., agreed that demand is increasing, but he said increases in production have stifled any improvement in pricing.
Ted Kreis, marketing director for the Northern Plains Potato Growers Association in East Grand Forks, said Sept. 15 that harvest should hit “high gear” by Oct. 1.
“Test digs have shown some very promising results for both yields and quality,” he said. “The deep red color for which the Red River Valley is known should be an asset for us this year.”
Although the region is known for red potatoes, Dolan said his company has increased its production of yellow potatoes this season.
Heimbuch Potatoes in Cogswell, N.D., grows only yellow potatoes. Chad Heimbuch, president and sales manager, said the company started its harvest in mid-August and expects to ship from storage into April.
“We have an excellent crop because of early planting, resulting in a long growing season,” he said. “Favorable early weather resulted in an excellent stand.”
Source: The Packer