Market Update

Market Snapshot*

The U.S. Department of Agriculture reported the following prices on potatoes from Colorado's San Luis Valley:
Russet norkotah U.S. No. 1, baled, five 10-pound film bags, size A $5.50; baled, 10 5-pound film bags size A $6.50; 50-pound cartons 40s $7-7.50, 50s mostly $7.50, 60s mostly $7.50-8, 70s mostly $7.50-8, 80s mostly $7.50, 90s mostly $7.50, 100s mostly $7.50.
Round red U.S. No. 1, baled, five 10-pound film bags size A mostly $6.50-7; baled, 10 5-pound film bags size A mostly $7.50-8; 50-pound cartons size B mostly $12-14.
Yellow U.S. No. 1, baled, 10 5-pound film bags size A $9-10.

*Prices from the USDA's National F.O.B. Review, Nov. 7.

The Shipping Scene

Yields are down slightly on Colorado potatoes this season, but quality is good, and supplies should be ample for Thanksgiving dinner, grower-shippers say.

In fact, Shannon Casey, president of Tan-O-on Marketing Inc., Albuquerque, N.M, said business already is picking up in anticipation of the late-November holiday.

Tan-O-on Marketing is sales agent for Hi-Land Potato Co. Inc. and Metz Potato Co. LLC, both in Monte Vista, Colo. Hi-land grows mostly norkota russets, and Metz produces russets, reds, yellows and specialty potatoes.

"Quality is excellent," Casey said.

Most of the tubers weigh 5 to 9 ounces, he said, with some smaller, which will go into consumer bags, and some larger, which will go to cartons.

So far, prices have been relatively stable, except for a few Thanksgiving ads, he said.

Whether prices hold will depend on how aggressive people will be on Thanksgiving and Christmas ads, he said.

Casey has found fresh-market demand to be off over the past three years as a result of consumers eating more precut and processed product.

"When that happens, price suffers," he said.

Demand from processors and the Mexican market is up, however.

Yields have been off this season because of extreme whether - hail, wind, then a freeze - during the growing season, he said. He estimated that the entire San Luis Valley is off as much as 10%.

He expected to be able to ship Colorado potatoes from storage until May or June.

Dave Warsh of Warsh Farms, Center, Colo., who is also chairman of United Potato Growers of Colorado in Monte Vista, said it seems that the size profile on this year's crop is centering on smaller and larger potatoes, with mid-sized tubers in shorter supply, depending on how weather affected the crop.

Extremely windy weather in early June followed by two nights of freezing temperatures had an effect on at least some of the crop.

"The potatoes that weren't out of the ground came on and had a pretty nice crop," he said. "The ones that were out of the ground got set back pretty hard."

"The quality is still good," he said.

Supplies of larger potatoes - 50-, 60- and 70-count - are getting tight, he said, which means cartons could be hard to come by as the season progresses.

He estimated that yields will be down to 355 bags per acres from about 380 last year.

Digging in the San Luis Valley started in mid-September and was finished by Oct. 19, he said. Weather cooperated, with only one rainy day during that time and no frost until early October.

Most of the state's potatoes - about 59,000 acres worth - are grown in the San Luis Valley in the south central part of the state he said. There are 4,000 or 5,000 acres in the northern part of the state east of Denver, but that deal is just about over.

Nearly all of the potatoes in the valley are fresh market, but many of those grown in the north go to processors.

About 85% of the state's potatoes are the russet variety, but Colorado growers also produce yellow, red, purple, organic and specialty potatoes, including fingerlings, he said.

Rick Ellithorpe, an owner of Aspen Produce LLC, Center, said wet, cloudy weather interfered with the cultivation of the crop this season and affected yields.

Supplies of larger potatoes are becoming tight, he said, and he agreed with Warsh that cartons could be hard to come by as the season progresses.

"There's no question in my mind that we'll finish early," he said.

If shipments continue at their normal pace, he estimated that he will have shipped all of his Colorado potatoes by the end of May. Some growers might slow their pace and hold onto some potatoes in hopes of collecting higher prices later in the season, he said.

Quality is excellent, he added.

"Nothing indicated that there was any compromise in quality," he said.

(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.)

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