Idaho-East Oregon onion growers contend with inflation

Inflation has been a challenge for East Oregon and Idaho onion grower-shippers, but they say rising supermarket prices haven’t affected sales of their product.

“The cost of everything has gone up considerably,” said Dallin Klingler, marketing and communications manager for Eagle Eye Produce, Idaho Falls, Idaho.

In some cases, the cost of fertilizer has more than doubled, he said. And fuel, labor and packaging costs are up as well.

“The good thing is that yields are going to be up, so those costs will be spread out more than they were last year,” he said. “But production costs ae still at an all-time high compared to pre-COVID and pre-inflation levels.”

Fob prices have risen, but not enough to counter rising input costs, he said.

Riverfront Produce Co. LLC, Payette, Idaho, also has felt the effects of inflation, said Nick Gomeza, who handles sales.

“Inflation is right up there with all-time highs, and thus costing us more to produce our onion crop,” he said.

Gomeza said he hasn’t yet seen any leveling off of the inflationary trend.

“We are hopeful there are some big-needed changes down the road,” he said.

Wada Farms Marketing Group LLC, Idaho Falls, also is dealing with rising costs.

“Every piece, from the bag to the wineglass label, the staples that close the 3-pound bag, everything is up at least 30%,” said John Vlahandreas, onion sales director.

And it gets worse.

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“You can’t get half the [needed inputs] unless you’ve got at least a six- to eight-week advance notice,” he said. “Before, you’d just call the guy, and they’d bring it over.”

The rising minimum wage has affected labor costs, and sometimes it’s a struggle to find people to work, Vlahandreas added.

Labor and fuel are the two major areas of inflation that Nyssa, Ore.-based Snake River Produce Co. LLC faces daily, said CEO Josh Frederick.

The cost of packaging, parts and repairs also increased over the past year along with bank interest rates, he said.

“Idaho Power Co. has increased all industrial electrical [rates] 20%, and that is a huge part of the expense needed for our storage facilities,” he said.

Frederick doesn’t anticipate price cuts anytime soon.

“The country is already in so much debt, and it continues to just increase,” he said. “In order for businesses to survive and farms to continue, we have to pass that increase along in our cost of goods.”

The good news is that higher prices don’t seem to have driven away consumers.

“Sales for us have always remained steady,” Frederick said. “The customers we have and work with understand the cost of farming and packing, and they fight daily to hold the markets needed to cover the cost of goods we pack and ship.”

Without loyal, supportive customers, “it would be hard to survive,” he said.

Consumers didn’t cut back on onion purchases even as prices rose because onions are an everyday staple, said Bailey Meyers, agritourism and marketing manager for Owyhee Produce, Parma, Idaho.

Inflation is affecting consumers too, but “everybody had to eat,” Gomeza said.

“We try and put a supreme product on everyone’s table and move forward with sales,” he said.

Learn: More about onions from PMG