Market Update

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on U.S. No. 1 Grade norkotah russet potatoes:

50-pound cartons of size 40s, 50s and 60s, mostly $6; size 70s, 80s, 90s and 100s, mostly $6.50; baled five 10-pound film bags, size A, $5-5.50.

* Prices from the USDA's Fruit & Vegetable Market News, Nov.4.

The Shipping Scene

Quality of Colorado's potato crop this year is excellent, grower-shippers say, and there should be plenty to go around. In fact, some potato growers are afraid there may be too many tubers out there.

"The quality in Colorado looks really good this year," said Trampas McCormick, sales coordinator for Worley & McCullough Inc. in Monte Vista.

But with high yields in Colorado and throughout the U.S., he said, "Movement definitely needs to pick up."

The company finished its 2009 harvest on schedule Oct. 9, and the potatoes are in storage and looking good, he said.

"There's a few problem lots, but those will be run out before long," he said. "Long-term, I think the quality will hold up well in Colorado."

But with the shaky economy and restaurants cutting back, McCormick joins growers everywhere who wish business would pick up. If sales would improve, he said, "We could be really rockin' and rollin'."

McCormick hopes the economic downturn might prompt supermarkets to try to move more volume by slashing prices to around 10 pounds for $1.99.

"That's a good buy," he said. "They need to bring that movement back."

With the amount of potatoes available, McCormick expects Worley & McCullough to have enough product to ship out of storage until July or August.

The company ships standard cartons and just about any size consumer bag a buyer could want, he said.

As much as McCormick would like to see higher prices, he said the Colorado market is fairly strong compared to some other growing areas.

"Colorado has done a really good job at holding a market," he said.

The harvest has been over for two or three weeks at Blanfort Inc. in Blanca, and warehouse manager Rodney Smith likes what he sees.

"Quality in general of this crop looks real good," he said.

Sizing is better than last year in part because of optimal growing conditions, aside from an unusually wet June, and partly because the company implemented special growing techniques designed to produce larger potatoes.

Blanfort offers a variety of russet potatoes, including norkotahs, canellas, centennials, nuggets and rio grandes, and packs them mostly in 10-pound poly bags.

This year's volume will be similar to last year's, Smith said.

Now is a good time for retailers to promote potatoes, Smith said, adding, "It's always a good time for that."

Dwayne Weyers, owner with Rick Ellithorpe of Aspen Produce LLC in Center, also reported good conditions at his company, where harvesting was completed Oct. 16.

"We've got a beautiful crop here," he said. "Shipping quality is excellent."

Some of the later product had a bit of frost in it, but it was put in storage to dry out and, so far, Weyers hasn't seen any problems with it.

Sizing is good, too. This year's crop managed to avoid the huge, 40-count tubers that were quite prevalent last year. Weyers said there are lots of good-quality middle sizes available this year - 60s, 70s, 80s and 90s.

"Prices are depressed a little bit now," he said, but with the harvest over, growers across the country can take a count, and industry members can figure out how many potatoes they actually have to sell.

"That's what it takes to solidify the market," he said.

Weyers anticipates better markets as weather gets cooler and consumers start eating heartier meals featuring potatoes. And he's hopeful that retailers will promote potatoes now that prices may be as low as they've been in three or four years.

Volume is about the same as last year at Aspen Produce, which sells russet, red and yellow potatoes.

Volume of Colorado potatoes this year should be 16.5 million hundredweight, an increase of 3% to 4% over last year, said Jim Ehrlich, executive director of the Colorado Potato Administrative Committee in Monte Vista. About 1,500 acres of potatoes were taken out of production because of weather problems and disease in a couple of fields, but overall yields were up 8%, he said. Also, a marketing order change increased the size of potatoes packed in cartons or bags from 1 7/8 inches to 2 inches.

(By Tom Burfield, Western correspondent for The Packer. The Packer and Red Book Credit Services are part of food360º, a division of Vance Publishing Corp., Lincolnshire, Ill.)

Resources

November 6, 2009

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