Idaho potatoes are in tight supply this year, but that doesn’t mean an end to Idaho potato promotions, said Ross Johnson, vice president of retail and international for the Idaho Potato Commission.
“What we are gearing up for right now is Potato Lovers Month [in February],” Johnson said. Despite the tighter supply this season, Potato Lovers Month is an opportunity for retailers to promote potatoes in unique ways, he said.
“A promotion doesn’t necessarily mean a price discount,” he said. “One of the things that we focus on for Potato Lovers Month is getting the potatoes out from the back of the [produce department],” he said. Normally, potatoes are the category consumers have to seek out, he said.
“We encourage retailers to bring those potatoes front and center and just watch what it does to [their] store sales, and to their category sales,” he said. When potatoes are placed front and center in the produce department, retailers see a 22% lift in sales on average, he said.
The commission’s Potato Lovers Month contest draws thousands of entries and offers substantial cash and non-cash prizes.
Because potato supplies are tighter this year and prices are elevated, the Idaho Potato Commission’s Potato Lovers Month promotion won’t require retailers to build massive displays for the contest, he said.
“But we are expecting that [retailers] get those potatoes out front and center because it’s an opportunity to really get consumers purchasing the product,” he said. The beauty of potato purchases is that consumers also think of recipes to use potatoes and what other food ingredients they need to buy, Johnson said.
Changing expectations
Tight market conditions will likely continue, he said
Frozen and dehydrated potato processors are attempting to purchase Idaho fresh potatoes that were earlier earmarked for the fresh market.
“Our fresh shippers are doing their best to hold on to the potatoes that they can,” he said.
Johnson said potatoes and bananas are fresh produce categories that have traditionally not experienced significant price increases, but inflation in farm inputs and shorter yields have changed that, he said
“We have not seen the ability for farmers to take [price] increases as they have needed to over the past 10 years,” he said. “It’s coming due, unfortunately, all at once.”
Still, consumers understand that food is costing more, and Johnson said retailers should adjust their expectations for promotions.
“A 99-cent [10-pound] bag of potatoes is just not in the cards anymore,” he said. Besides a shorter crop and higher input costs, shippers have invested heavily in packinghouse automation to deal with labor challenges. That technology is expensive and also has contributed to higher costs, he said.
If the U.S. slides into a recession, Johnson said consumers will know that potatoes will be a key food staple that has greater shelf life than other produce options. “Recessions are good for potatoes, and consumers understand that,” he said. “If you’re in a bind and looking to save, pound for pound, [potatoes] are still the best value in the produce department.”
