Farmers have been growing mostly red and yellow potatoes in the Red River Valley since the 19th century. While the fields may look the same as they did generations ago, the industry itself has undergone a remarkable transformation.
Potato varieties have evolved. State-of-the-art machinery now handles planting and harvesting. Advances have been made in grading, sizing and packaging technology. And the latest buying, selling and inventory tracking systems are now everyday tools for many companies.
At the same time, the number of potato facilities is said to be on the decline even as the size of the plants increases.
NoKota Packers
NoKota Packers Inc., a 46-year-old family-owned potato wash plant in Buxton, N.D., is an example of the strides the industry has made.
“We started fairly small,” says Carissa Olsen, president and CEO.
NoKota shipped about 220,000 hundredweight of potatoes its first season. Today, its annual volume tops 600,000 cwt. The company shipped almost exclusively red potatoes at first, but yellow potatoes were added several years ago in response to growing consumer and customer demand.
The business itself also has changed considerably over 46 years, Olsen says.
“We have continually invested in storage, washing, grading, packaging and, more recently, automation,” she says.
The robotic palletizing has been particularly impactful.
“Stacking 50-pound bags and boxes is physically demanding work, and historically an absence in one of those positions could stop an entire line,” she says. “Automation allows us to continue running, reduces repetitive manual lifting and lets us use our employees in areas where their experience and decision-making bring greater value.”
Optical sorting technology is another important advancement because it allows grading staff to evaluate potatoes more consistently while increasing throughput, she adds.
H&S FreshPak
In Hoople, N.D., 9-year-old H&S FreshPak, which is owned by two fourth-generation family farms — Hall’s G4 and O.C. Schulz & Sons — processes and ships red and yellow potatoes for the fresh market, says Bernie Mullen, general manager.
“We have a state-of-the-art automated grading line and packaging line,” he says. “This has enabled us to ensure our product is shipped with a consistent high standard of quality.”
The company can pack anything from 3-pound bags to 2,200-pound totes.
“Since H&S was started, it has grown and changed with the times and technology,” Mullen says.
One of the latest developments has been the addition of crates to store potatoes. The crates help extend the shipping season on red and yellow potatoes, but especially on the yellows, he says.
“This has really made a huge impact by reducing the pressure bruise later in the season, which promotes less waste and ensures that high-quality standard,” Mullen says.
O.C. Schulz & Sons
O.C. Schulz & Sons Inc., a 67-year-old family-owned operation in Crystal, N.D., grows wheat, soybeans and sugar beets in addition to potatoes, says Dave Moquist, an owner.
The company gradually shifted from processing potatoes in the 1970s to the 1990s and added more and more fresh market potatoes.
“The biggest change recently is the demand for yellow-fleshed varieties,” he says. “We have increased our production of yellows and decreased our red production accordingly.”
Today, about 70% of the company’s potatoes remain the red variety. The company markets mostly to wholesalers and repackers.
Another major change at O.C. Schulz & Sons is the technology in the storage and packing shed.
“All the storages’ air systems are computerized, and the grading line is all automated with computer grading,” Moquist says.
Black Gold Farms
A major change that Keith Groven, director of operations for Grand Fords, N.D.-based Black Gold Farms, has seen is the increasing influence of consumer demand on potato types and variety decisions.
“The growth in the yellow potato segment has given growers an incredible opportunity to diversify their acres,” he says.
The company also continues to see adoption of automation throughout its entire production process.
“Optical sorters, stackers and palletizers and improved packing technologies have become common across the industry,” Groven says. “These technologies are helping us as growers ship a higher quality, more consistent product to the folks who love Red River Valley potatoes.”
Black Gold Farms was established in 1928 in Forest River, N.D., and today is operated by brothers Eric and John Halverson, fourth-generation family members, he says.
Consolidation and Complexity
Aside from varietal changes and the latest technical innovations, Olsen says she’s spotted a trend toward consolidation in the industry.
“There are fewer growers, fewer wash plants and generally larger operations than there were years ago,” she says. “At the same time, the cost and complexity of growing, storing and packing potatoes have increased tremendously.”
These changes aren’t necessarily good or bad, she says, but they have caused the industry to evolve.
“There are certainly pressures that come with consolidation and increasing costs, but those changes have also pushed our industry toward greater efficiency, better technology and stronger collaboration,” she says.
“The challenge is making sure we don’t become so focused on efficiency that we lose some of what makes this region special — our growers, our relationships and the identity of Red River Valley potatoes,” Olsen says.
What’s in store for the future of the Red River Valley industry?
Mullen cites the development of new red and yellow potato varieties as well as further advancement in handling and grading equipment for harvest.
“From there, our potatoes will continue to grow in market share,” he says.
