A Great Business Opportunity

Published online: Nov 03, 2020 Articles
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This column appears in the November 2020 issue of Potato Grower.

The once-lowly potato did not rise to the top of America’s classiest menus by accident: Some decades ago, when Idaho replaced Maine as the nation’s largest potato-producing state, Idaho potato growers formed the Idaho Potato Commission (IPC) and promptly charged the commission with promoting “Famous Idaho Potatoes.” Putting significant economic muscle behind branding Idaho potatoes resulted in an ad campaign that lifted the heretofore dreary vegetable from being a boring staple to a delectable dietary delight. It remains there today, unchallenged.

No one questions, nor could question, the IPC’s success in placing the “Idaho baker” at the top of fine-dining menus. It is not uncommon for North America’s highbrow restaurants to feature the “Idaho Baker” at prices ranging from $5to $11 each! Apart from that, retailers of any and all potato products know and appreciate the value of having the Idaho brand on grocery shelves and in grocery freezers. But, for a variety of reasons, Idaho potato growers have yet to take advantage of the IPC’s extraordinary efforts regarding the oft-orphaned grocery/consumer side of the business. Of course, Idaho growers are proud of what the IPC has accomplished, especially in the restaurant trade. Gloating about it comes as natural to Idaho growers as breathing Idaho’s clean mountain air. But breathing air, regardless of its mountainous origin, does not help one efficiently manage one’s business; understanding and executing informed, market-based economics does. 

Putting significant economic muscle behind branding Idaho potatoes resulted in the heretofore dreary vegetable being viewed as a delectable dietary delight.

Often handled as byproduct that must be cleared from the loading dock, inaction to correct a problem that amounts to roughly 40 percent of Idaho’s total fresh potato shipments is a huge economic issue. Name another business that would stand for it. This situation not only injures the Idaho potato grower, it undermines total retail market value for everyone else in the russet consumer supply chain. How often have you heard, “If Idaho growers would just manage their portion of the consumer supply chain, what a happy world it would be—happy for them and happy for everyone else in the grocery side of the fresh-potato business.”

In the early 1970s, when Idaho growers lost the legislative battle to disallow non-size A and No. 2s being exported from the state, some believed that Idaho’s consumer battle was lost. That mistaken impression assumed that Idaho growers were incapable of effectively managing their part of the grocery supply chain. But, because the Idaho brand retains such significant brand value across every potato category, all that is lacking to significantly increase Idaho grower’s return in the grocery side of their business is a bit of grower/shipper collaboration.

Summation: Don’t give up, Idaho growers! Don’t let someone tell you that mechanisms don’t exist that enable you to manage the grocery side of your crop from a purely business perspective. Why compromise 40 percent of your exported crop? Producing potatoes is a business—your business. You assume the entire risk that comes with it. It is your skin that is in the game, no one else’s.