Potatoes offer one solution to food inflation

If consumers are looking to get the most bang for their buck, the potato category at their grocer is the place they should make sure they shop, says Carissa Olsen, president and CEO of NoKota Packers Inc., Buxton, N.D.

“We want to put a focus on how affordable potatoes are for the family,” Olsen said. “If people are tightening their buying, then there’s no better place to start than by eating potatoes. The potato is still the most affordable and best bang for your buck at the supermarket.”

To maximize retail sales, merchandisers should promote potatoes of all colors, Olsen said.  

“Promoting an item doesn’t mean they need to discount the price excessively, or at all,” she said. “Store displays/locations and signage are important in drawing attention from the consumer."

NoKota Packers specializes in red and yellow potatoes, she said. The company has been packing and shipping potatoes in a small farming community in Buxton since 1979.

“We focus on not only the health benefits that potatoes provide but also the benefits to a family’s budget at the grocery store,” Olsen said.

In a typical year, Olsen said NoKota stores, washes, packs and ships out over 550,000 cwt of potatoes.  

Operating in the Red River Valley, the company works with growers from the best potato growing area around, Olsen said.

“We are a partner in Fresh Solutions Network — a group of family-owned growers and shippers who choose to work together to make the potato and onion industry better for everyone,” Olsen said. “The Partners of Fresh Solutions Network deliver more than just superior quality potatoes and onions. They deliver solutions. From supply chain optimization and category management best practices to innovative new products, processes and marketing programs, Fresh Solutions Network and its Network Partners work with you to drive profitable category growth and shopper loyalty.”

Olsen said that NoKota offers buyers plenty of packaging options, including private label.

“The move to private label packing exploded over the last handful of years,” she said. “We pack dozens of different private labels here at NoKota already.”

The market outlook seems to call for tighter potato supplies than a year ago for the next few months, though new crop Florida potatoes are coming soon, Olsen said.

Grower returns continue to be under pressure because of higher costs, Olsen said, resulting in flat to negative returns to the farm.

“At some point, growers need to make money, or there won’t be any growers left,” Olsen said.