The two big stories out of California’s Kern County potato deal this year are 1) that there is a fairly good market and 2) there are no russet potatoes.
The russet deal, which was the core of the California fresh potato industry for decades, has been in decline for 20 years, and finally, it is no more. A survey of the acreage revealed zero russet-dedicated acres this year. For the past three years, russet acreage has been below 1,000 acres, which is a far cry from its relatively recent peak of 8,600 acres in 1996.
Gary Askenaizer of Progressive Produce Corp. in Los Angeles said that over the years it has been harder and harder for Kern County producers to compete against the Northwest storage crops. Those areas have lower production costs that made it difficult for Kern County russets to get the premium pricing that the new potato crop used to command every year.
“It is just a sign of the times for the potato deal,” said Askenaizer. “They just can’t compete on russets, but it is remarkable considering how many russets Kern County used to grow.”
Instead, growers have focused on red, yellow and white potatoes with yellows showing the biggest gain in recent years. This season, Kern County yellows are up about 20 percent with an additional 300 acres, bringing that item’s acreage above the 1,800-acre level. Reds still lead the way with more than 2,000 acres, followed by the white rose potato at about 1,100 acres. There are also some specialty potatoes, such as fingerlings, but those acreage numbers are not reported.
Askenaizer said the other news is that the deal got off to a good start. With the beginning of production in early May, the market was strong and though it settled down, it remained strong through the month. According to the U.S. Market News Service, 50-pound cartons of reds were selling in the $14 to $18 range, while yellows and whites were a couple of dollars less.
Askenaizer said the reds, yellows and whites still give Kern County a very nice new potato crop and a niche marketing opportunity as the storage-crop deals wind down in late spring.
Kern County is expected to have good supplies through the Fourth of July, with most sheds closing down by around July 10. However, there are several packer-shippers with potatoes from other California districts that continue shipping from Kern County through the summer.
Mike Haddad, sales manager for Kirschenman Enterprises Inc. in Edison, Calif., also noted good early pricing for the deal, but he was a bit dismayed by a weakening of the market in late May. He said May is typically a feeling-out period as all the production comes on line and Kern County finds its niche competing against other regions. June is usually a strong marketing month, especially for reds, as other areas see a decline in red, yellow and white varieties.
On May 25, Haddad said the red market was not as strong as he expected it to be. After Memorial Day weekend, demand typically increases, and he is again expecting that to occur.
Looking at the June marketing situation, Askenaizer was more optimistic and said he expects the market to get stronger. He noted that Florida’s production of the same potatoes that California produces is winding down, which should create better demand for Bakersfield area production. Haddad acknowledged that possibility but said potatoes from Arizona also appear to be affecting the supply-demand situation.
The weather has cooperated very well this year, with cooler than normal temperatures so far. Heat is often the enemy of the potato crop, which is grown in the lower San Joaquin Valley, where 100-degree days are not unusual in the late spring.
Source: The Produce News