Demand remains strong for red potatoes - The Packer

Demand remains strong for red potatoes

10/11/2011 12:34:00 PM
Dan Gailbraith

Although Red River Valley’s red potatoes are still viewed as a specialty item, demand is strong and grower-shippers expect it to remain so.

The Packer’s 2011 Fresh Trends reported that 16% of consumers surveyed preferred to purchase red potatoes, while 43% preferred russets.

Still, overall demand for red potatoes has been strong since the spring and throughout the summer, said Ted Kreis, marketing and communications director for Northern Plains Potato Growers Association, East Grand Forks, Minn.

“Demand outstrips supply,” he said.

This season, a short supply likely will continue through fall because Red River Valley crop production is down. As a result, Kreis said he expects prices to remain relatively high.

In early October, 50-pound sacks of U.S. No. 1 size A round red potatoes from Minnesota were priced at $20 in the Chicago terminal market, the U.S. Department of Agriculture reported.

That’s much higher than a year earlier, when 50-pound sacks of U.S. No. 1 size A round red potatoes from Minnesota and North Dakota were priced at $12-16 in Chicago, according to the USDA.

It wasn’t just red potatoes that were priced higher — overall commodity prices rose sharply, Kreis said.

Early this season, around Sept. 21, red potatoes were priced at $28 per cwt., said Tom Campbell, co-owner and sales manager, Campbell Farms, Grafton, N.D.

But not many sheds were shipping yet and market supplies were low, he said.

“Pricing compared to any year I remember is phenomenal,” said Steve Tweten, president and sales manager at NoKota Packers Inc., Buxton, N.D. “It’s a very good price with good demand. Buyers are wanting great red potatoes.”

Cory Seim, general manager, Northern Valley Growers, Hoople, N.D., also described the $28-per-cwt. price as “phenomenal” and “record-setting.”

The market was strong in late September, and it started with good quality potatoes, which was just what Northern Valley’s buyers were looking for, he said.

Seim said he expected demand to remain strong, and though prices were likely to fall, he hoped to maintain good returns to growers.

Demand in September was good, but it was too early to say how it would be throughout the remainder of the season, Campbell said.

“The whole story isn’t in yet,” he said.

Paul Dolan, general manager of Associated Potato Growers Inc., Grand Forks, N.D., said he expected demand to pick up later in the season, when prices likely will drop as more supplies enter the market.

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