Foodservice Shutdown Hits Maine Potato Industry Hard

Published online: Apr 28, 2020 Articles David Marino Jr.
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Source: Bangor Daily News

Few foods are as associated with American cuisine as french fries. So why are potato processors sitting on pounds upon pounds of America’s favorite side dish?

About 12 to 15 percent of potatoes from the 2019 harvest have gone unsold so far, Maine Potato Board executive director Don Flannery said. And because of the steep decline in demand for the 2019 crop, farmers’ spring potato planting likely will be down at least 5,000 acres—about a 10 percent drop in acreage since last year.

“It’s going to have a negative impact on every potato grower in Maine and every potato grower in the United States,” Flannery said. “That level has yet to be seen because there are still too many questions unknown.”

Lower demand from restaurants leaves potato processors with bags of frozen french fries that can’t find a home, even as a spike in frozen french fry sales nationwide leads to shortages in many supermarkets.

“These french fries are already in the bags,” Flannery said. “[Processors] may not have the equipment to package retail because it’s a whole different infrastructure.”

Garrett Hemphill, co-owner of Hemphill Farms in Presque Isle, is one of many farmers whose bottom line is being hurt by the “new normal.”

But those processors are now asking for 16 percent fewer potatoes from those growers, leading to a decline in sales for Hemphill Farms. The farm has begun to seek alternative markets, including selling 50-pound bags directly to customers across The County.

While Hemphill said his family farm—which celebrates its 100th anniversary this year—would survive, 2020 will not be nearly as successful a year as it had projected.

Dominic LaJoie, a partner at the Van Buren-based LaJoie Growers, said millions of pounds of his potatoes are still without a home because of a reduction in demand from manufacturers and planters.

The economic shutdown creates a “domino effect,” causing potatoes to have fewer and fewer markets across the country, LaJoie said. And it is about far more than just restaurants—the regular sale of potato products to cafeterias, colleges, sporting events, concerts and conventions are all on hold right now.

LaJoie said he was saddened by the precarious situation potato growers across the country are now in because of the country’s economic shutdown.

He remained hopeful that the economy will not be in the same state when the harvest completes in the fall. Otherwise, it could spell ruin for many potato farmers in Maine and beyond.

As growers prepare to plant the 2020 potato crop in the coming weeks, uncertainty looms over what the economy will look like when the harvest finishes in the fall. And because of decreased demand from the foodservice sector, farmers said their businesses won’t come close to regular sales as long as the economy remains partially closed.

The decline in demand represents a potential crisis for the County potato industry unlike anything it has seen before. Indeed, the nationwide food industry has remained open through past struggles.

Even during the aftermath of the 2007 financial crisis and resulting recession, restaurants remained open and the industry remained strong, according to press reports from the time.