High desert harvest: Potato producers readying for San Luis Valley crop

At an elevation of 7,600 feet, situated along the Rio Grande River and tucked between two mountains outlining the horizon — the San Juans and Sangre de Cristos — the second-largest fresh potato region in the U.S. is nestled in the southern heart of Colorado in an area called the San Luis Valley.

Boasting nearly 365 days of sunshine, the high desert growing region provides fertile ground for potato crops, with 150 growers calling the region home, according to the Colorado Potato Administrative Committee. As the first of the new crop harvest comes of the ground this fall, growers, shippers and distributors are taking stock.

Tater Traders, a family-run potato brokerage based in Golden, Colo., works closely with growers in the San Luis Valley. Operations Manager Morgan McCormick was enthusiastic about the season ramp up in the weeks ahead when she spoke with The Packer on Aug. 23.

“It’s always fun when we start to get busy and you get to start talking to the growers every day,” McCormick said. “I always get excited for that time of year.”

As the potato supply moves around the nation, she said she’s looking forward to when the harvest comes to Colorado, specifically the San Luis Valley, when she anticipates doing a lot of business with nearby growers.

Strong markets bode well at Colorado’s season kickoff

The current market for potatoes remains strong. Over the past year, U.S. retail dollar sales of potatoes increased double digits, growing 16.8% from July 2022 to June 2023, according to a recent Circana (IRI) report. The San Luis Valley has reaped the benefits of favorable market conditions in the lead up to the 2023 season.

“The period of the pandemic renewed consumers’ love affair with fresh potatoes and seems to have boosted consumption long term,” MountainKing Potatoes Director of Marketing Andreas Trettin told The Packer.

The potato distributor said that it’s been tracking preferences for fresh potatoes as they shift in assortment, variety and package size.

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“The days of deep-discount, large bags of russet potatoes have given way to flavorful varieties, smaller packages and smaller-size potatoes,” Trettin said.

Underlining the sustained demand — and despite a slight decrease in volume — dollar sales for the overall potato category reached a new high-water mark in June 2023, totaling $16.9 billion for the 52-week period, the highest in five years, according to the Circana report.

Retail prices for potatoes increased by 19.9% for the full year. Despite this price jump and as evidenced by the strength of sales, potatoes remain affordable for consumers with an average price of $2.36 per pound, according to the report.

Les Alderete, general manager for Golden, Colo.-based grower Skyline Potato Co., told The Packer that he’s bracing for a course-correction after a series of high-performing years.

“I’m hoping this year will still be a profitable year, but we’re coming off record highs the last couple years,” he said. “There’s got to be some kind of correction, and we’re seeing that now.”

He remains hopeful, citing decent sizing and increased acreage across the board.

“We’ll see how the year goes,” Alderete said. “In the other major areas, they’ve had strong yields where they’ve started harvesting and size profile has been good. So, we’ll have more potatoes this year than we’ve had the last couple of years.”

Eric Beck, director of marketing for Wada Farms, sees this year’s potato demand continuing to trend favorably.

“With steady pressure of inflation still prevalent in our economy, potatoes remain a value-based basket item for all consumer demographics,” Beck said.

The Idaho-based potato grower-shipper has built its Colorado footprint over the course of two decades and counting.

“Our Colorado network of growers play an intricate part to our potato program by offering efficient and cost-effective supply chain solutions to help the overall bottom line in all industry segments,” he said.

Poised for harvest

The steady demand for potatoes has positioned producers like Wada Farms for a strong season as they ready for an early fall harvest kickoff. While the grower-shipper boasts a year-round Colorado potato program, the new crop typically starts at the end of August. Looking at the weeks ahead, Beck is optimistic.

“From a quality perspective, the growing conditions were favorable, and we should see good quality coming out of the fields,” he said. “There should be good sizing profile ranging across the entire spectrum. Test digs and initial quality inspections are indicating good overall internal and external quality characteristics for the tubers, and we anticipate they should store well for the duration of the 2023-2024 season.”

This year, distributor MountainKing Potatoes has increased its acreage for yellow-flesh potato varieties along with baby golds and baby reds to meet strong demand, Trettin said.

“Due to beneficial weather, we are a little ahead of schedule for our harvest in September,” he said. “Test digs showed good sizing and we expect excellent quality.”

What’s more, timed alongside MountainKing Potatoes’ harvest in September, the distributor is rolling out its fall marketing plan that will include a social media campaign, product Kwik Loks (bag closures), store contests and a full POS merchandising program, Trettin said.

As the grower-shipper Tater Traders prepares for fall harvest in the San Luis Valley, freight is top of mind.

“It’ll be interesting to see the transportation side of things this year,” McCormick said. “It seems like this summer was the first time that there’s been a break in the craziness.”

Water remains a challenge

Water is another consideration for growers this time of year across the dry and sunny Southwest, including the San Luis Valley region.

“It seems that early [this year] in the San Luis Valley, there was quite a bit of water. Some of the recharge pits were the fullest that people had seen them, but as the summer went on, the heat kind of became more of a challenge,” McCormick said.

Growers were hoping that the early precipitation would translate to fully recharged reservoirs; instead, high temperatures and dry summer months translated to increased irrigation needs, and water continues to challenge the region, she added.

San Luis Valley grower Skyline Potato Co. reported no major weather issues but expects a slightly lighter yield due to an early-season cold spell that caused some plants to not size up as expected. Subsequent plantings fared better, said Alderete, adding that the crop is in good shape overall.

“It’s been a balancing act; the weather is warm right now and they’re calling for rain here in the valley,” he said. “We haven’t had rain here in the last month and a half. It’s just been hot and dry.”

Rain is typically a welcome sight, even during harvest, he continued.

“You can get a little bit of rain and it won’t hurt [your harvest]. You just won’t have to run the water as much or pre-irrigate before you harvest,” he said. “You can put a quick burst of water on the potatoes before you harvest and break up any clods, and [rain can] help with that.”

Seeking competitive gains at the season start

The diversified, vertically integrated Wada Farms says it leans on data to put itself, and its customers, a step ahead.

The easiest way to up your fresh produce game, according to the grower-shipper, is to do your research — information is power.

“Do your due diligence and assess the category data to make sure you’re meeting the needs of your customer base. Leverage those shippers that have access to category management and put yourself ahead of the curve,” Beck said. “Data is a very powerful tool in today’s dynamic landscape.”

For others, the upcoming season brings personnel growth and transitions that will inevitably shape the business.

Leading the second generation at Tater Traders, McCormick got her start in the produce business working alongside her mom. Despite the unique challenges that come with working with family, McCormick says she enjoys the closeness that a family business brings.

“My sister just started in August, and it’s been really fun working with her,” McCormick said. “We know each other so well.”