Potato Expo


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Advertiser Index Hotlinks Click on the Advertiser to Jump Straight to Their Ad CHEMICALS

EQUIPMENT

Basf

American Wholesale Co.

Bayer - Movento

EZ Tarp

C.S.I. Nutri-Cal

Greentronics

DuPont

Harriston-Mayo

Nu-Trax P+

IHT

Protassium+

Industrial Ventilation, Inc.

Wolf Trax DDP

Skone Irrigation Inc Suberizer

POTATO SEED

Colorado Certified Potato Growers Association Dennie Arnold Farms Idaho Certified Seed Potatoes

Western Trailers

TESTING Stukenholtz

Lake Seed Montana Seed Pieper Farms Schutter Seed Farm

Click this symbol to watch a video

Country PotatoCountry.com • February 2017

Expo Experts

Stir the Pot

Crop Protection Essentials The Variety Conundrum

+W[\-‫ٺ‬MK\Q^M

SUBERIZER CURVE...

,M[QOV-VOQVMMZQVO
THE COMPLETE STORAGE COMPANY www.suberizer.com

THAT’S HOW MOVENTO� INSECTICIDE MAKES POTATOES FEEL. In trials and grower reviews, Movento® insecticide delivers proven protection against a broad spectrum of above-ground pests, including aphids, psyllids and mites. Plus, a foliar application of Movento protects against below-ground pests like nematodes and wireworms, with movement throughout the plant to protect the parts pests seek most. With Movento as part of your ongoing pest management program, you’ll have stronger, healthier plants that produce a higher quality crop. For more information, contact your retailer or Bayer representative or visit www.Movento.us.

© 2017 Bayer CropScience LP, 2 TW Alexander Drive, Research Triangle Park, NC 27709. Always read and follow label instructions. Bayer, the Bayer Cross, and Movento are registered trademarks of Bayer. For additional product information, call toll-free 1-866-99-BAYER (1-866-992-2937) or visit our website at www.CropScience.Bayer.us.

w w w . Po t a t o Co u n t r y . c o m Columbia Media Group PO Box 333 Roberts, Idaho 83444 Phone: (208) 520-6461

Country

Table of Contents

Editorial Board

Vol. 33 No. 2

February 2017 6 Potato Expo

Washington State Potato Commission

17 Things in '17

(509) 765-8845

Chris Voigt

Executive Director

14 Culinary, Technology Pros Share Insights Expo Experts Stir the Pot

Oregon Potato Commission

18 National Potato Council Annual Meeting

(503) 239-4763

NPC Selects President, Sets Priorities

Bill Brewer

Executive Director

20 Buyers' Guide

Crop Protection Essentials

26 Potatoes USA

Industry Outreach Committee Adds Personal Touch to Reach Industry

28 Idaho Potato Commission

Idaho Potatoes Ring up Higher Sales Across Asia

30 Potato Growers of Washington

The Need for Stable Prices and Lower Risk

Idaho Potato Commission

(208) 334-2350

Frank Muir President/CEO

Insect Identification Quiz: Andy Jensen, Ph.D., regional research director, Washington, Idaho and Oregon potato commissions. Disease Identification Quiz: Dr. Jeff Miller, plant pathologist and president and CEO of Miller Research, Rupert, Idaho.

Potato Country Contacts Denise Keller........................ [email protected] Editor

Dave Alexander..................... [email protected] Publisher, Advertising

Brian Feist............................. [email protected]

On The Cover

Advertising

EDITORIAL INFORMATION Potato Country is interested in newsworthy material related to potato production and marketing. Contributions from all segments of the industry are welcome. Submit news releases, new product submissions, stories and photos via email to: [email protected].

Departments

Chef Ian Kittichai of Thailand plates his Massaman Beef Curry, a dish that helped him win the $2,500 top prize in the second annual Spud Nation Throw-Down held at Potato Expo 2017.

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11 Disease Quiz 12 New Products 13 In the News 19 Calendar 23 Insect Quiz 24 Market Report

ADVERTISING SALES For information about advertising rates, mechanics, deadlines, copy submission, mailing, contract conditions and other information, call Dave Alexander at (208) 520-6461 or email [email protected]. SUBSCRIPTION INFORMATION U.S........................ 1 year, $18.00; 2 years $31.00, 3 years, $41.00. Canada.................. 1 year, $30.00; 2 years $49.00; 3 years 68.00. Foreign.................. 1 year, $45.00; 2 years $85.00; 3 years $121.00. Payments accepted by check, Visa, MasterCard or American Express. Subscriptions can be entered online at www.potatocountry.com. Email address changes/corrections to [email protected] or send to Potato Country, PO Box 333, Roberts, ID 83444. Potato Country magazine (ISSN 0886-4780), is published eight times per year and mailed under a standard rate mailing permit at Idaho Falls, Idaho and at additional mailing offices. It is produced by Columbia Media Group, PO Box 333, Roberts, ID 83444 Copyright 2017. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose without the express written permission of Columbia Media Group. For information on reprints call (208) 520-6461.

Put the right nutrient tool to work for your potatoes. Reach for Wolf Trax Zinc DDP® and Boron DDP, nutrient tools that are field-proven by growers like you to optimize potato production. Featuring EvenCoat™ technology, Zinc DDP and Boron DDP coat onto dry fertilizer blends, ensuring blanket-like distribution across the field, more feeding sites and earlier delivery of zinc and boron to your young potato plants. Have your dealer add Zinc DDP and Boron DDP — or any combination of Wolf Trax Innovative Nutrients — to customize your dry fertilizer blend and get the right nutrient tool working for you.

EVENCOAT

PLANTACTIV

Discover how these patented technologies can benefit your potato crop at wolftrax.com EVENCOAT

EVENCOAT

EvenCoat™ Technology

PLANTACTIV

PLANTACTIV

PlantActiv™ Formulation

DUAL ACTION™ Availability DUAL ACTION

FLEX USE

© 2017 Compass Minerals. All rights reserved. Wolf Trax and Design, DDP, EvenCoat, PlantActiv and DUAL ACTION are trademarks of Compass Minerals Manitoba Inc. Compass Minerals is the proud 02--)&"/,#,)#/5 ++,31&3"21/&"+10ѷ,1))-/,!2 10/"/"$&01"/"!&+))/"0ѷ,+1 14,)ȇ/5ҿ ,*-00*&+"/)0ѷ ,*#,/*,/"&+#,/*1&,+ѷ/,!2 1!"-& 1"!&0,)#/5 /,+ ,1"! onto urea fertilizer. Other DDP Nutrients may not appear exactly as shown. DUAL ACTION

DUAL ACTION

FLEX USE

FLEX USE

Potato Expo

THINGS

17 IN

'17 1.

W

ith so many things to see and do at Potato Expo, we wanted to share as many highlights as possible. We hit the trade show floor with cameras in tow, and in honor of Potato Expo 2017, we bring you 17 products promoted at the big event.

Rick Rutherford and Johannes Richter with Coderre Packaging stand with the company’s Upmatic Master Baler.

2. Jennie Sun promotes Gowan Company’s Zing! Fungicide. 3. Ag-Pak fills its trade show space with the latest generation Celox XT grading and sizing system. 4.

Syngenta shows how Cruiser Maxx Vibrance and Elatus improve the root system of this Rhizoctonia- inoculated plant.

5.

Andrew Philpott stands in front of Volm’s Manter Bag Placer, which has been added to the Semi-Automatic Bagger to form the AutoPack, an automatic bulk bagging system.

4

2

3 1

6

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Potato Country

February 2017

Special Delivery for Your Crops. Nu-Trax P+™ with CropStart™ Technology turns every granule of your fertilizer blend into a special delivery of early season nutrition. Nu-Trax P+ is the ideal blend of phosphorus, zinc and other nutrients essential for vigorous crop growth. Featuring patented EvenCoat™ Technology, it coats onto dry fertilizer, ensuring blanket-like distribution near young plant roots. See how Nu-Trax P+ can deliver the agronomic benefits of a starter to your crops. Ask your retailer to add Nu-Trax P+ to your dry fertilizer blends.

NuTrax.com ©2017 Compass Minerals is a registered trademark of Compass Minerals International, Inc., and Nu-Trax P+, CropStart and EvenCoat are trademarks of Compass Minerals Manitoba Inc. Compass Minerals is the proud supplier of Wolf Trax® Innovative Nutrients. Not all products are registered in all areas. Contact [email protected] for more information.

CropStart™ Technology

Potato Expo

THINGS

17 IN

'17 8

6. Valley Irrigation spotlights its new ICON smart center pivot irrigation control panel. 7. David Lankford (right) demonstrates Agri-Inject’s Reflex variable rate fertigation system. 8.

Richard Kelly mans the Certis USA booth and answers questions about LifeGard, a new product to control foliar diseases in potatoes.

9.

Mike Cohn (left) and Mike Jenzah promote Magnation’s Turbulator, an inline unit designed for use in saline conditions to improve soil infiltration, moisture retention and water efficiency.

10. Bill Grant with Jet Harvest Solutions offers information about Bio-Save biological fungicide.

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10

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Potato Country

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February 2017

9

potatoes that are the picture of health.

with Endura Fungicide. Tough diseases call for higher intelligence. Endura fungicide is the industry leader in white mold control. Applied during the bulking stage as part of a planned fungicide program, it has a unique mode of action that also provides control over early blight, plus suppression of gray mold. And it works extremely well in fungicide-resistance management rotations. Learn more at agproducts.basf.us

Grow Smart is a trademark of BASF, Endura is a registered trademark of BASF. © 2017 BASF Corporation. All rights reserved. APN 16-SPC-0006

Potato Expo

THINGS

17 IN

'17

11. SunRain exhibits its newest variety innovations. 12. Tomra showcases the Tomra 5A process potato sorter. 13. Simplot gives out potato chips made from the company’s genetically modified Innate potatoes. 14. NNZ debuts its new package clips. 15. Greentronics presents its new RiteTraceTrack and Trace traceability system.

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16. Industrial Ventilation Inc. introduces its new Imperium storage control panel. 17. Ag analytics company CropX displays soil moisture sensors that work with the company’s software to generate irrigation plans.

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Dr. Jeff Miller

Know Your Potato Diseases

Disease Identification Quiz Potatoes in storage can show “fuzzy” growths on the surface of the tuber. This fuzz is often the signs of fungal growth. But not all fungi which grow on potato surfaces cause disease. These photos show examples of the “fuzz.” Do you know which are causing disease and which are not?

A

B. This tuber had a white and yellow fuzzy growth on one end. That tissue at that end of the tuber is dry. At the interface between healthy and diseased tissue, a wet decay was observed. Is the fuzzy growth responsible for the decay present here?

A. Both of these tubers have a white fuzz growing on them. The tuber on the right had broken open. Is the white fuzzy growth responsible for the breakdown in the tuber on the left?

B

C D D. White, gray and black fuzz is growing on this tuber. After it was cut open, light brown to copper-colored streaks were present around the edges. Is the external fuzz causing the problem?

C. A black fuzz is growing on this tuber. Is this a disease?

Dr. Jeff Miller, a plant pathologist, is the president and CEO of Miller Research, Rupert, Idaho. He can be contacted by phone: (208) 531-5124; cell: (208) 431-4420; [email protected]

ANSWERS, PAGE 30

(406) 994-3150 www.montanaspud.org www.PotatoCountry.com

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New Products

Better Built Builds Better Seed Cutter

Better Built has received a patent for the newly improved sizer on its potato seed cutter. The company has made several changes to reduce the system’s downtime. The sizing rollers are designed to be below the actual sizing frame, which allows users to quickly replace sizing rollers when needed. The company also increased the number of sizing rollers to improve accuracy in sizing potatoes. In addition, with the Push Button Quick Adjust, customers can adjust the sizer by pushing a button for the zone needing adjustment, which can be done while the machine is in operation or before starting the machine. Contatct All Star Manufacturing & Design LLC at (800) 972-8183.

CMI Rolls out Rock Eliminator

CMI Equipment and Engineering’s Rock Eliminator is designed to fit many applications and is engineered to serve as a lift and to remove rocks. As product is fed into the hopper, a steady speed vertical auger creates turbulence in the water. This movement separates rocks from the product, washes any loose soil from it and moves the item to the lift position to be transferred to the next step in the production process. Constructed of stainless steel, the Rock Eliminator can be customized to the user’s desired discharge height. In addition, the hopper is built to suit specific production needs. Visit www.cmiequip-eng.com.

Growing Quality Seed For 50 Years! Magnation Introduces Aquabolt

Left to right: Sid, John, Jonathan, Carl, Nick and Cliff.  Try our   LINE SELECTIONS  on Russet Burbanks,  Umatillas and Teton Russet 

Derived from Meristem Culture Very Uniform and High Producers Rigid Sanitation Program in Field and Storage Long Rotations on Isolated Fields Modern Air and Humidity Control in All Storages All available Seed Generation II & Generation III A beautiful, smooth crop

SCHUTTER SEED FARM 3627 Wooden Shoe Rd., Manhattan, MT 59741 Sid: (406) 539-6478  John: (406) 580-6446 Nick: (406) 539-6125  Cliff: (406) 580-6818

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Magnation Water Technologies’ chemical-free water softening technology is now paired with static mixing capabilities in the company’s new product Aquabolt. Designed to mitigate extreme salt conditions and transform problematic mineral salts into bioavailable nutrients, Aquabolt delivers results with a quantifiable impact on soil infiltration, improved soil moisture retention by up to 250 percent, stronger plant vigor with optimum capillary action, nutrient absorption and better hydration with 20 percent less water, according to Magnation. Aquabolt is designed to eliminate mineral scale buildup, reduce maintenance and maximize the power of the water. Visit www. rainlikewater.com.

In the News

DuPont Resumes Production of Vydate

DuPont has secured a new supply source for its Vydate insecticide/nematicide. The company is currently producing Vydate and distributing it in many countries, according to an announcement by a DuPont representative at Potato Expo. The company is working on U.S. registration of the product and anticipates product availability in the U.S. in the second half of 2017. Vydate has been in short supply since production was suspended after a fatal accident at the company’s former production plant in 2014. DuPont recognized the need for the product and worked diligently to locate a new supplier, according to a DuPont representative.

Health and Fitness Experts Pump up Potatoes Potatoes USA is partnering with a network of influential people in the health and fitness arena to amplify the potato industry’s athletic performance messaging. During the next six months, 18 influencers will post positive potato nutrition content including performance messaging and performance-focused recipes on their blogs and social media. This partnership is designed to fill the web with positive and credible third-party potato nutrition content, as well as educate the health and fitness community. The campaign will drive traffic to the nutrition pages on PotatoGoodness.com and has the potential to garner over 1 million impressions.

K File #1259

PROBLEM | YIELD-ROBBING CHLORIDE

the case against chloride

Growers Are Making the Switch to Protassium+ Many potato growers replenish their fields with K sources that contain high levels of potassium and chloride. While high potassium content is beneficial, high chloride content often

NPC Names New Staff The National Potato Council (NPC) has welcomed Kam Quarles as its senior director of public policy. Most recently at international law firm McDermott, Will & Emery, Quarles spent more than two decades resolving complex regulatory, communication and public relations issues for international businesses, public agencies and national trade associations including the NPC. Quarles has also served as vice president for government relations at United Fresh Produce Association and vice president of government affairs at the National Council of Farmer Cooperatives. He holds a master’s degree in international commerce and policy from George Mason University.

SOLUTION | REPLENISH WITH PROTASSIUM+™

leads to nutritional imbalances and nutrient displacement. To avoid the harmful effects of chloride, growers have turned to Protassium+™ sulfate of  potash, a premium K source with more to offer. Muriate of Potash CHLORIDE SALT INDEX

Less than 1% 0.85 per unit of K 2 O* Lowest of all major potassium sources

47% 1.93 per unit of K 2O

SULFATE SULFUR

17%

0%

POTASSIUM

50%

60%

VERSATILIT Y

8 grades

Limited

ORGANIC CERTIFICATION

OMRI CDFA

No

BEST VALUE

˛

X

THE NEED FOR POTASSIUM Potatoes remove up to 56 lbs. of K 2O/100 cwt of yield1. Results show that /"-)"+&0%&+$‫!)"ޖ‬04&1% Protassium+ produces up to 5 Tons/acre more 1%+‫!)"ޖ‬0treated with muriate of potash2.

BETTER STORABILITY Protassium+ delivers nutrients that help reduce shrinkage and sprouting in storage. In fact, potatoes treated with Protassium+ have fewer sprouts per tuber ȇ"/усс!60&+01,/$"versus potatoes treated with other K sources (like muriate of potash)3 .

TWO ESSENTIAL NUTRIENTS Protassium+ provides potatoes the necessary nutrients for optimum yield, including 17% sulfate sulfur. The sulfate sulfur in Protassium+ can help keep potatoes healthy by inhibiting the spread of powdery scab disease4.

MORE U.S. NO. 1S Results show potatoes treated with Protassium+ yield 3 Tons more U.S. No. 1s per acre than potatoes treated with muriate of potash5 .

Contact your local retailer or Compass Minerals at 800.743.7258.

P R OTA S S I U M P L U S . C O M *Lower salt index has higher level of safety. ©2017 Compass Minerals. All rights reserved. 1 “Potatoes + K.” Potatoes: Surveying the Need. Compass Minerals. protassiumplus.com/ surveying-the-need-in-potatoes 2 “Proof Is in the Potatoes.” Field Trial Emphasizes Benefits of Potassium for Potatoes. Holland Agricultural Services. protassiumplus.com/knowledge-center/post/proof-is-in-the-potatoes 3 “How to Win the Potato Storage Loss Battle.” Colorado State University. protassiumplus.com/knowledge-center/post/how-to-win-the-potato-storage-loss-battle 4 “The Interaction of Sulfur and Scab Disease.” The Roles of Sulfur in Nutrient – Disease Interactions. Purdue University Department of Botany and Plant Pathology. protassiumplus.com/knowledge-center/ post/the-interaction-of-sulfur-and-scab-disease in 5 “Proof Is in the Potatoes.” Field Trial Emphasizes Benefits of Potassium for Potatoes. Holland Agricultural Services. protassiumplus.com/knowledge-center/post/proof-is-in-the-potatoes

www.PotatoCountry.com 53275_1_CMP_ProPlus_Potato_4-875x7-375_a2.indd 1

2017-01-04 10:12 AM

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Expo Experts Stir the Pot Culinary, Technology Pros Share Insights Story and photos by Denise Keller, Editor

Thailand’s Ian Kittichai makes Massaman Beef Curry, the winning dish in the Spud Nation Throw-Down.

W

ith Potato Expo 2017 taking place in San Francisco, a city known for its creative cuisine and tech-savvy start-ups, it seemed natural that talk of food and the future was a common thread woven throughout the event. A lively, food-centered session kicked off the conference. The second annual Spud Nation Throw-Down embraced the diversity of San Francisco culture and cuisine by taking on an international flare. The live cooking competition brought together four top chefs from around the world to prepare and serve their unique potato specialties to a panel of judges. Judges scored the dishes based on a long list of factors including aroma, seasoning, creativity, use of potatoes and, of course, taste. In the end, Thailand’s Ian Kittichai and his recipe for Massaman Beef Curry won over the judges and earned him the $2,500 top prize. Second place went to Tony de Graaf of Taiwan for his Heirloom Potato Involtini with Taiwanese Sausage. Wandy Robles from the Dominican Republic also impressed the judges with

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a serving of Potato Mofongo, and Doris Goldgewicht from Costa Rica earned high praise for her Potato Picadillo with Chorizo. Later in the expo, the chefs spoke about their international culinary experience with potatoes. In a panel discussion, they shared their perspectives on how potatoes are succeeding in foodservice and how to inspire other chefs and consumers to embrace potatoes as a delicious and nutritious part of their cooking and dining experiences across the globe. “In Taiwan, potatoes are a burgeoning category mostly in fast food and casual dining. Potatoes are not an inherent natural product in Taiwan, so we don’t see a lot of potatoes in our native cooking. But we’re seeing more and more potatoes as outside concepts are coming into the country,” de Graaf explained. “We eat potatoes every day in Costa Rica. We eat fresh potatoes and frozen potatoes,” Goldgewicht added. “I love potatoes because I can do a lot of things with them, and they’re a good

complement for chicken, meat or alone. You can do everything from drinks to desserts with potatoes.” Robles reported that although potatoes are commonly used in fast food in the Dominican Republic, as a chef, he would like to learn more ways to incorporate fresh potatoes into meals. The chefs all agreed that there is a need to educate the culinary community and consumers about the versatility, healthfulness and affordability of potatoes. de Graaf also suggested focusing on the USA brand in signage and promotions. “USA has big brand recognition in Taiwan. Anything that’s made in the USA sells really well. I think if you were to promote it more in retail settings and brand potatoes really well as potatoes USA, that would carry a lot of weight with Taiwanese consumers. If we can make that type of connection between USA quality and USA potatoes, consumers will be really willing to try that product,” de Graaf said, adding that this has been the case in other categories of food from the U.S. such as meat. Chef Wandy Robles from the Dominican Republic cooks Potato Mofongo.

Foodservice Trends, Retail Demands

Among other topics, breakout sessions discussed the potato’s place in foodservice and retail. Amy Shipley with the Sterling-Rice Group reported that 57 percent of all U.S. potatoes are sold through foodservice, and potatoes are the top food eaten at foodservice for dinner. Shipley said several emerging foodservice trends provide opportunities for potatoes. Restaurants’ movement to serve breakfast 24/7 is good news for the industry, as is the shift toward plant-based eating with more vegetables taking center stage on the plate. According to retail expert John Rand, consumers want food that is fresh, local, organic, natural and healthy. Potatoes hit the mark, but Rand is unsure how well that message is being heard. The potato industry needs to do a better job reinforcing the value of its product, he said, as the communications channel may be more important than distribution channels in the coming years. “It’s not enough for your product to show up at stores anymore; it needs to talk,” Rand said, adding that great products and great brands tell stories.

This dish, Heirloom Potato Involtini with Taiwanese Sausage, earned Tony de Graaf of Taiwan second place honors in the Spud Nation Throw-Down. Photo courtesy NPC

The Social Wall at Potato Expo displays livetimeTweets and Facebook posts about Expo. Farming in Silicon Valley panelists discuss agricultural applications of current technology and future innovations.

Sanjay Gupta, a researcher at the University of Minnesota, shares his research on nitrogen fertilizer’s effect on potato processing and storage quality. www.PotatoCountry.com

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Potato Expo Online Opportunities, Tech-Savvy Solutions

Several sessions addressed the impact of technology on the potato industry. Online grocery shopping and what it means to the potato business was a hot topic throughout the meeting. Produce is currently not viewed as a “good fit” for online shopping, according to Matt Lally with Nielsen. Still, 31 percent of Americans have purchased food online, and half of those people bought fruits and vegetables. With those numbers expected to grow, now is the time to develop a strategy to take advantage of online opportunities, Lally said. A panel of irrigation manufacturers gathered to talk about improvements in irrigation technology and to hear from potato growers about what they need in a system. There was a strong desire by growers for a software program that can digest all the field, weather, soil probe and water data and recommend an irrigation schedule. But because there are so many variables that can affect a crop’s irrigation needs, the panelists were hesitant to say that the technology will be quick to come. Speaking at the Potato Business Summit held just prior to Potato Expo, Deanna Kovar with John Deere said we are at a pivotal point in ag in which technology is required to grow more with less. She cited several key technological advances outside of ag that are helping increase productivity within the industry including machine control technology, connected smart machines, mobile devices, advanced data analytics and cloud computing.

Potato Expo attendees Frank Muir with the Idaho Potato Commission (left) and Ragen Darrington with Industrial Ventilation make time for a game of foosball in the Potatoes USA lounge.

Potato Expo 2018 is planned for Jan. 10-12, 2018, at the Rosen Shingle Creek resort in Orlando, Florida. A serving of Potato Mofongo awaits the Spud Nation Throw-Down judges. Photo courtesy NPC

Rich Karlgaard, publisher of Forbes magazine, speaks about how the world’s growing population and technological advances are impacting industries including agriculture.

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Spud Nation Throw-Down judges Donny Krautscheid with Lamb Weston (right) and Dan Nakamura with Idahoan Foods taste Heirloom Potato Involtini with Taiwanese Sausage.

Dan Lake, Potato Expo steering committee co-chair, welcomes the next speaker to the stage.

Chef Tony de Graaf of Taiwan chops potatoes during the live cooking competition.

In the keynote address, NASA engineer Adam Steltzner explains the value of collaboration and teamwork based on his experience leading the group that landed the Mars rover Curiosity.

MINIMIZING DISEASE Silver Scurf and other molds naturally spread through the air and can cause severe damage, especially late in storage.

Ryan Smolkin, CEO of Smoke’s Poutinerie, describes building and branding his restaurant chain, which serves poutine, a Canadian dish made with French fries, cheese curds and gravy.

Humigation removes airborne mold spores, stops the spread of disease, and keeps crops healthy. Captured Silver Scurf Spores

MAXIMIZING HUMIDITY Boosting humidity maintains higher crop weight and increases profits. Humigation optimizes humidity while using less water and without making a standing water mess.

Chef Doris Goldgewicht from Costa Rica prepares Potato Picadillo with Chorizo.

humigation.com | 800-656-2281 www.PotatoCountry.com

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The NPC’s 2017 Executive Committee includes (left to right): Cully Easterday, Dominic LaJoie, Jim Tiede, Larry Alsum, Dwayne Weyers, Britt Raybould and Daniel Chin. Photo courtesy NPC

NPC Selects President, Sets Priorities

O

n the heels of the 2016 presidential election, the National Potato Council (NPC) elected its new president and leaders during the NPC Annual Meeting, held Jan. 6-7 in San Francisco, and prioritized issues important to the potato industry in 2017.

Priority Issues

In committee meetings, attendees discussed topics directly affecting growers including: • Trade Agreements: The path forward for trade is unclear, but NPC is hopeful progress can be made with the new administration. If the Trans- Pacific Partnership (TPP) is considered, NPC remains a supporter of exporting potatoes to the Pacific Rim and reducing tariffs. • The Clean Water Act: NPC supports withdrawing Waters of the United States (WOTUS) and clarifying that National Pollutant Discharge Elimination System (NPDES) permits for pesticide applications are not required. WOTUS would vastly expand the public and private lands that are covered under the Clean Water Act and thereby increase potential fines and penalties on farmers for routine activities such

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as tillage and pesticide application. The current NPDES permit burden means farmers are now vulnerable to $37,500 in fines per day for simple paperwork violations that provide no additional environmental benefit, according to the NPC. • Farm Bill 2018: Already gearing up for 2018, NPC is watching for possible restricting of access to “unhealthy” foods, where some definitions would include chips as “unhealthy.” NPC also continues to be a leader in the Specialty Crop Farm Bill Alliance, which advocates for enhanced resources for export promotion, research and other programs to enhance the competitiveness of specialty crops. • EPA: NPC continues to advocate for a reset of policy at EPA, calling for more transparency and a science- based process. The NPC views the potential for a regulatory reset at EPA as one of the bright spots in the new administration.

New Leaders

Taking the helm to move these issues forward is Dwayne Weyers of Aspen

Produce LLC, in Center, Colorado, elected during the meeting to serve as the NPC’s 2017 president. In addition to Weyers, the NPC executive committee includes Daniel Chin, Klamath Falls, Oregon, vice president, Grower and Public Relations; Cully Easterday, Pasco, Washington, first vice president, Trade Affairs; Larry Alsum, Friesland, Wisconsin, vice president, Finance and Office Procedures; Dominic LaJoie, Van Buren, Maine, vice president, Environmental Affairs; Britt Raybould, St. Anthony, Idaho, vice president, Legislative and Government Affairs; and Jim Tiede, American Falls, Idaho, immediate past president. In February, the executive committee will meet at the Potato D.C. Fly-In to lead more than 150 growers in meetings with senators and members of the House. They will communicate the need to reduce the regulatory burden on farms and small businesses, jumpstart tax reform including eliminating the estate tax and making accelerated depreciation permanent, and support foreign trade deals that facilitate potato exports.

Accomplishments, Accolades

The NPC also recognized several stars

Calendar Feb. 13-16

Potato D.C. Fly-in

The Mayflower Hotel Washington, DC Contact Hillary Hutchins, [email protected]

Mar. 2-3

Western Nutrient Management Conference Silver Legacy Resort Reno, Nev. Visit www.ipni.net/WNMC

Mar. 2-3 Jim Tiede (left) honors Randy Hardy, pictured with his wife, Karlene, with the Gold Potato Award for leadership. Photo courtesy NPC

of the industry with awards at the meeting’s banquet. The NPC Environmental Stewardship Award went to Boyd Foster of Vista Valley Ag in Ririe, Idaho, for his effective use of pest management tools and conservation efforts. Foster plants a rotation of potatoes, barley, wheat and alfalfa to reduce pest pressure and utilizes integrated pest management throughout the farm. In order to reduce erosion and provide habitat for animals and insects, he plants a mix of natural grasses on pivot corners. In his closing remarks, Weyers commended past presidents for their accomplishments, even though the fruition of their work may not be seen until years later. “We have demonstrated our ability to shape public policy for the improvement of our industry,” he said. The NPC Summer Meeting will be held June 28-30 at the Brown Palace Hotel in Denver.

NPC Priorities • Trade Agreements • The Clean Water Act • Farm Bill 2018 • EPA

Bio Controls Conference and Expo

Grand Sierra Resort Reno, Nev. Visit www.biocontrolsconference.com

Mar. 13-16

Potatoes USA Annual Meeting Marriott City Center Denver, Colo. Contact Caitlin Mueller, [email protected]

June 28-30

National Potato Council Summer Meeting

Brown Palace Hotel Denver, Colo. Contact Hillary Hutchins, [email protected]

Jim Tiede (left) presents the NPC Environmental Stewardship Award to Boyd and Laurie Foster of Vista Valley Ag. Photo courtesy NPC

Editor’s note:To have your event listed, please email Denise Keller at [email protected]. Please send your information 90 days in advance.

Pieper Farms LLC Line Selected Top Quality Seed

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Crop Protection Essentials Buyers' Guide

NovaSource www.novasource.com Linex 4L Herbicide

An additional mode of action for battling resistant weeds is now available since NovaSource recently received a Special Local Need label for pre-emergence application of Linex 4L to potatoes in Oregon, Washington and Idaho. Linex 4L (linuron) is a urea-based Group 7 herbicide delivering a different mode of action than many common herbicides. Using Linex 4L for your pre-emergence application in potatoes breaks the cycle of continual product use and can result in better control of resistant weeds, including hairy and eastern black nightshade, common lambsquarters, redroot pigweed, kochia and other grasses. Using Linex in a pre-emergence application also enables greater flexibility in-season.

Gowan Company www.gowanco.com Zing! Fungicide

Zing! Fungicide is a premix protectant fungicide combining zoxamide and chlorothalonil in an easy-touse liquid SC formulation. The combination of zoxamide and chlorothalonil work together to enhance the performance beyond each individual product. These products have been successfully controlling diseases for several years in the labelled crops with no documented resistance in the field. Zing! Fungicide provides excellent control of key diseases like early blight, late blight, downy mildew, anthracnose and more. Registered for use on potatoes, onions, cucurbits and tomatoes, Zing! is an excellent choice, adding multi-site, multi-mode of action to your resistance management program.

Nichino America, Inc. www.nichino.net

Moncut SC Fungicide

Moncut SC is a liquid formulation fungicide that provides reliable, effective control of soil-borne potato diseases with extended residual activity. The active ingredient in Moncut SC, flutolanil, protects both the seed piece and tuber set. Moncut SC is a curative and preventative treatment, stopping disease progress and preventing future infections. The systemic activity of Moncut SC delivers protection to the entire plant and developing root systems. Moncut SC is an excellent fit in resistance management programs. Moncut SC provides excellent disease control so the potato crop can reach its full yield and quality potential, even under the most severe disease pressure situations.

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Vestaron www.vestaron.com Spear-P Bioinsecticide

Spear-P is Vestaron’s new bioinsecticide control solution for Colorado potato beetle. Field trials of Spear-P demonstrate that results are equivalent or superior to conventional control chemicals. Vestaron expects commercial availability in 2018. 20

Potato Country

February 2017

DuPont www.vertisan.dupont.com Vertisan Fungicide

Vertisan fungicide is a balanced fungicide with residual, preventative and post-infection activity for potatoes. It provides early-season, broad-spectrum disease control for black dot, Rhizoctonia, early blight, powdery mildew, brown spot and Botrytis. Vertisan also provides translaminar and locally systemic protection within treated tissues and excellent rainfastness. Vertisan provides powerful and consistent field performance.

UPI www.upi-usa.com

Moccasin Herbicide, Dexter MAX Fungicide

UPI is launching two new products for use on potatoes in 2017. Moccasin herbicide offers protection against many yield-robbing broadleaf and grass weeds including species that are resistant to glyphosate. Moccasin contains S-Metolachlor, providing higher herbicidal activity than metolachlor products. Moccasin is a soil-applied residual herbicide that can be used after hilling or lay-by, by incorporating into soil pre-emerge or applied post-emerge before weeds break through the soil surface. Moccasin can be tank mixed with other preemerge herbicides to expand the spectrum of weeds controlled and extend the length of residual activity. Dexter MAX fungicide is a new broad-spectrum fungicide containing two active ingredients for increased resistance management. Dexter MAX is highly effective against early blight, late blight and black dot. Applications of Dexter MAX can be applied throughout the season, from when plants are 4 to 6 inches high until 14 days before harvest, at five- to 10-day intervals.

Dow AgroSciences www.dowagro.com Transform WG Insecticide

In 2016, Dow AgroSciences received federal registration for Transform WG insecticide in potatoes. Transform is a fast-acting insecticide from a new class of chemistry – the sulfoximines – and controls sap-feeding pests, like aphids, potato psyllids and leafhoppers. Transform kills insects through contact and ingestion, providing fast knockdown and residual. The translaminar activity of Transform allows it to move to the underside of leaves. Systemic movement enables Transform to move to new and expanding leaf tissue. Sulfoxaflor, the active ingredient in Transform, has been designated as the sole member of the new subgroup 4C by the Insecticide Resistance Action Committee. The unique mode of action of Transform makes it a valuable rotational tool. Transform has minimal impact on populations of key beneficial insects. It has no impact on beneficial mite species and will not flare mites or secondary pests.

Syngenta www.syngenta-us.com

Minecto Pro Insecticide

To be marketed as Minecto Pro insecticide upon registration, the premix formulation of cyantraniliprole and abamectin offers robust control of key potato pests, including Colorado potato beetles and potato psyllids. Its complementary active ingredients broaden the activity spectrum compared to other standalone products. With two translaminar modes of action, Minecto Pro creates a reservoir of active ingredients, offering extended residual control of pests.

Bayer www.cropscience.bayer.us Velum Prime, Movento Insecticides

The V+M solution offers nematode suppression with added disease and insect management in a unique solution from Bayer. The solution brings together the wide-spectrum nematicidal activity of Velum Prime with the sustained in-season nematode protection of Movento. The use of these two proven products together recharges and extends current nematode management programs for higher yield and quality leading to a more profitable crop. Growers should continue their current fumigant treatment with an early-season application of Velum Prime, followed by two sprays of Movento to provide season-long protection. Third-party trials show marketable yields were increased by 82 cwt/acre with the V+M solution compared to competitive programs. www.PotatoCountry.com

21

crop protection Essentials BASF www.agproducts.basf.us

Priaxor, Endura Fungicides

Priaxor fungicide has two modes of action that provide consistent and long-lasting disease control, helping growers yield more quality potatoes. It is a disease management tool that controls a broad-spectrum of diseases including Rhizoctonia, blight and black dot. Priaxor fungicide is now open to wider use due to MRL agreements with key export countries. Apply Priaxor fungicide in-furrow to start the season right by controlling Rhizoctonia. Foliar applications during the season control early blight and black dot. Endura fungicide is the highest performing and most proven tool for controlling white mold in potatoes. An adjuvant maximizes coverage and white mold control. Two applications are commonly used for maximum control. Growers should use Priaxor and Endura fungicides as part of their planned and comprehensive disease management program. Always read and follow labeled instructions.

Marrone Bio

www.marronebio.com/majestene

Majestene Bionematicide

Majestene is a broad-spectrum and economically sustainable liquid bionematicide that can be applied at planting and in-season for season-long nematode reduction for improved quality yield. With a novel, bacteria-based (non-living) active ingredient, Majestene possesses true nematicial activity against eggs, juveniles and adult nematodes. In trials, Majestene has proven effective against root knot, lesion, ring, stunt, sting, spiral, reniform, cyst, burrowing and lance nematodes on potatoes, carrots, corn, cotton, cucurbits, fruiting vegetables, soybeans, strawberries and others. Majestene offers growers a new choice in a dwindling selection of nematode management tools: broad spectrum, exempt from residue tolerances, and for conventional and organic production.

FMC www.fmccrop.com

Beleaf, Athena, Brigadier, Rovral, Ethos

FMC has an expanded portfolio offering a full lineup of products to help protect potato growers’ crops. With both piercing and sucking insects threatening potatoes, FMC offers Beleaf 50 SG insecticide, Athena insecticide/miticide and Brigadier insecticide to help stop them before they start. FMC also offers Rovral brand 4 flowable fungicide with a unique mode of action and excellent control of white mold and early blight. The newest product from FMC is Ethos XB Insecticide/Fungicide, which offers the broadest spectrum of defense against soil insect pests and diseases such as Rhizoctonia, pythium and fusarium.

Certis USA www.certisusa.com LifeGard WG Biofungicide

LifeGard WG, the first foliar-applied biological plant activator available on the market, is used to control diseases on potatoes, such as early blight and white mold. Introduced by the biopesticide company, Certis USA, LifeGard is a naturally occurring bacterium that triggers an induced resistance (IR) response in plants that activates the potato plant’s natural defensive mechanisms. LifeGard is ideal for use in resistance management programs. It has low residue levels and is crop and worker safe. LifeGard is NOP Approved and OMRI Listed, it is residue exempt, it has a four-hour REI, it can be applied the day of harvest, and the product is bee safe.

22

Potato Country

February 2017

Insect Identification Quiz Dr. Andy Jensen

The biggest groups of insects, such as flies, moths and beetles, undergo a complete metamorphosis from a worm-like larva to a winged adult via a non-mobile and non-feeding transformational stage called the pupa. During the pupal stage, most larval tissues are radically transformed into adult tissues.

A Pictured are three insect pupae that a potato producer might find associated with potatoes.

Questions: 1. What is each insect? 2. Where might each be found associated with potatoes?

C

B This material is provided courtesy of Andy Jensen, Ph.D., Manager of the Northwest Potato Research Consortium. For more information, visit www.nwpotatoresearch.com.

ANSWERS, PAGE 29

www.PotatoCountry.com

23

Market Report

T

The Variety Conundrum

he Potato Association of America (PAA) lists 498 potato cultivars (varieties and line selections) in its 2016 certified seed potato list. That list has expanded from 291 cultivars in 2006, an increase of 207 cultivars in 10 years, attesting to the prolific efforts of plant breeders around the country. The list includes 95 cultivars with no acreage, some of which may be included in the “miscellaneous” category, while others are varieties that have been abandoned but not removed from the list. Only 220 of the cultivars had more than 10 acres of seed certified in the U.S. in 2016. Some of those cultivars are still in the experimental stage, but most are being sold commercially. The relevant question is, “How many potato varieties are being marketed commercially?” Perhaps the more precise question is, “Who are all of these varieties being marketed to?” Many of the cultivars have been created for industrial uses, in which case they must be marketed to the processors, as well as to growers. However, 152 of the cultivars with more than 10 acres of seed are intended to be used almost exclusively for table potatoes, while another 31 cultivars are “dual-use” potatoes, which are sold through retail

channels as well as being used to produce either French fries or potato chips. The surprising truth is that although as many as 183 cultivars are being moved through retail channels, close to 95 percent (no precise data on volumes are available) of all retail potato sales are marketed under six broad categories with very little effort to differentiate the potatoes further. The categories are russets, red potatoes, yellow potatoes, round white potatoes, long white potatoes and yellow-fleshed red potatoes.

A Case for Differentiation

Idaho requires all potatoes shipped from the state to carry the “Grown in Idaho” label, offering a form of geographic differentiation, which has nothing to do with variety. Retailers promote “locally grown” potatoes for another form of geographic differentiation. Idaho also requires packers to label packaged potatoes by variety, but packing sheds usually put those labels in the most inconspicuous place possible. There is no conscious effort to market the different varieties based on flavor, texture, special uses, superior health benefits or other characteristics of the variety. Most potatoes shipped from other states don’t go as far as Idaho does in variety identification.

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Potato Country

February 2017

It is instructive to contrast potato retailing with marketing in the packaged goods industry. A quick check on the “Cheerios” website shows that General Mills is marketing at least 13 distinct flavors of that one cereal. That doesn’t include the generic and store brand versions of the donut-shaped oat cereal, never mind all of the other prepared breakfast cereal offerings in the retail grocery store. While that is only one item, it is illustrative of the lengths that packaged goods marketers will go to differentiate their products, not only from products sold by their competitors, but to segment the market according to consumer preferences. If potato marketing were following the packaged cereal marketing model, each of the 13 Norkotah line selections would be branded and marketed to customers based on specific qualities and attributes of that cultivar. Certainly, each of the russet varieties being produced for sale through retail channels would be marketed separately, touting “superior baking quality,” or “best mashed potato,” etc. The same can be said for the numerous red, yellow and white potato varieties now reaching the market. Each has a different flavor profile, solids content, etc., and each variety has strengths that would make it attractive to certain market segments and/ or for certain uses. Perhaps differentiation on the scale of the packaged goods industry seems out of reach. If so, think of the meat section in the supermarket. Imagine if meat selections were limited to beef, pork, chicken, turkey, lamb, fish and shell fish, with no additional differentiation. That is still one more category than the industry uses to market 95 percent of the potatoes sold through retail. Obviously, if a consumer went to the grocery store to purchase pork three consecutive weeks and received ham one time, pork chops the next and bacon the third time, without any explanation of how to prepare the pork and the appropriate use for that item, she would be confused and would be less likely to buy pork in the future. While that may sound extreme, that is essentially the level of sophistication currently used to market 95 percent of the

By Bruce Huffaker, Publisher North American Potato Market News

fresh potatoes sold through fresh market channels in the U.S.

Roadblocks to Differentiation

Why hasn’t potato product differentiation evolved more than it has? Several factors are involved. Many potato varieties are in the public domain, which limits the incentive to promote those varieties. In addition, protected varieties are usually marketed to growers, rather than to consumers. Marketers have been convinced that there are a limited number of UPC codes for potatoes, which limits the amount of differentiation that retailers can handle. Perhaps the biggest barrier to product differentiation at the retail level is the way in which potato varieties are developed and marketed. Plant breeders and seed growers view their customers as the commercial growers who buy the seed. The focus is on yield, disease resistance, low input cost and storability. Since there are a limited number of industrial potato buyers (processors), those buyers have a big influence on which industrial varieties contract growers plant. They pick varieties that meet their needs and, more importantly, the needs of their customers. Fresh potato retailers tend to take a more hands-off attitude toward variety development and selection. As a result, the focus of seed breeding programs is on production efficiency, rather than on providing retail customers with a great experience. How can the industry change this paradigm? To some extent, the change is underway. The changes are coming in specialty varieties, which currently are a small part of the entire category. Yellow potatoes are part of that change, though there certainly is room for more differentiation in that category. The industry will need to work with retailers to solve some of the UPC code issues and to proactively support differentiation, but that can be done if industry leaders will step forward. Perhaps the biggest challenge will be developing business models that reward growers and/or marketing organizations for the efforts that are needed to increase differentiation.

Huffaker's highlights • The U.S. produces at least 183 potato cultivars that are sold through table potato market channels. • At least 95 percent of fresh potatoes are marketed under one of six categories: russet, red, yellow, round white, long white or yellow-fleshed red. • The potato industry needs to do more to differentiate between varieties to provide consumers with more alternatives and in order to facilitate consumer education on how to get the best performance out of any variety that they purchase.

Editor’s note: To contact Mr. Huffaker, or to subscribe to North American Potato Market News (published 48 times per year), write or call: 2690 N. Rough Stone Way, Meridian, ID 83646; (208) 525-8397; or e-mail [email protected].

www.PotatoCountry.com

25

Potatoes USA

Industry Outreach Committee Adds Personal Touch to Reach Industry By Karlene Hardy, Potatoes USA Executive Committee Member, Co-Chairman of the Industry Outreach Committee

S

ince our March 2016 annual meeting, efforts have been made to improve Potatoes USA’s communications to the U.S. potato industry. These efforts have led to many changes in the structure of the Potatoes USA Industry Outreach Committee to better reach these goals. The objective of our committee has been to share data, updates, trends, recipes and other valuable information with all who are affiliated with the potato industry. By meeting these goals and objectives, we hope to show the level of prosperity the U.S. grower dollars are reaching on their behalf, and we hope to do this as cost effectively as possible. We have begun a new Potatoes USA Ambassador Program made up of board members as well as former committee chairs. We have conducted surveys to determine where we are lacking within our member group, and we are using this information to plan improvements going forward. Message training for board members at summer and annual meetings will be an important part of

the Ambassador Program and will help prepare all of us to share our passion for potatoes. The new Potatoes USA industry website, www.PotatoesUSA.com/ growers, has been modified and expanded to provide a section for the Ambassador Program. The website now allows easier access to all of the resources available from Potatoes USA to the industry including research, the global database, the retail portal and more. We have also modified the Industry Updates to better fit specific target groups and to streamline the frequency and length of the updates. As Industry Outreach Committee members, we are attending state winter meetings and were available in the Potatoes USA booth at the Potato Expo in San Francisco. We will also attend state commission meetings in an effort to share our message with these grower leaders and staff members. Staff provides monthly updates to the Executive Committee and to the Industry Outreach Committee to help us be prepared to share the information. They also make available a streamlined handout on Potatoes USA programs and

successes. Our marketing department staff will also constantly communicate about the marketing programs with emails, newsletters and quarterly reports to committee members. These communications all build a knowledge base for presentations at state grower and other meetings. Our Expo booth was much more interactive as Potato Ambassadors become more involved with the goal of engaging Expo attendees in fun and informational activities. Our new advertising strategy will be more cost effective by eliminating print ads and strategically placing useful information digitally throughout the industry publications. We, as a committee, are excited about the changes to our structure and the direction we are moving in working to share the great message of the potato with all who are involved in the industry, as well as the consumer. As a Potatoes USA board member, I am confident in our ability to meet the goals and objectives that we have set for ourselves, and I love hearing positive comments from fellow board members and also from the growers who we represent. We will continue our efforts to communicate the status and effectiveness of our programs that are ultimately designed to increase domestic and international demand for U.S. grown potatoes to all growers and the industry at large.

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Idaho Potato Commission

Idaho Potatoes Ring up Higher Sales Across Asia The Philippines and Taiwan have joined the roster of burgeoning international markets for Idaho potatoes, with fresh spuds hitting the shelves at leading supermarkets backed by in-store promotions and branding initiatives from the Idaho Potato Commission (IPC). Premium fingerlings also rolled out in high-end hotel restaurants in Taiwan, according to IPC International Marketing Director Traci Loftus, as part of the commission’s ongoing mission to help push Idaho potatoes into new markets while maintaining brand awareness in current markets. “Throughout the world, we are sponsoring Idaho potato in-store promotions, foodservice trainings and executive chef demonstrations, along with participating in trade shows and local events with shippers and local distribution partners,” Loftus said. “With a 25 percent increase in exports of U.S. potatoes since 2005, the growth of exports from Idaho has also been on the rise.”



IPC’s successful international initiatives in 2016 include: • Supporting the launch of an Idaho potato dehydrated product for online sales with two of China’s leading online retailers • Working with an Idaho processor to brand frozen French fries for a major 34-store warehouse chain throughout Mexico • Providing assistance to a Puerto Rico distributor for an anniversary promotion that increased the company’s Idaho potato sales 500 percent • Driving awareness with Idaho potato branded trucks on the streets in Singapore, Malaysia, the Philippines and El Salvador

The Idaho Potato Commission maintains full-time representative offices in Cuernavaca, Mexico (representing Latin America); Kuala Lumpur, Malaysia (representing Southeast Asia); and Hong Kong, China (representing mainland China, Hong Kong, Macau and Taiwan). It regularly represents Idaho at international trade shows and conducts international retail promotions, trade missions, sponsored menu-promotions, chef training events and competitions, and market and trade policy research.

Branded distribution trucks promote Idaho potatoes on the streets of Singapore, Malaysia, the Philippines and El Salvador.

Attendees of a foodservice trade mission in Guatemala taste soup made with Idaho Yukon Gold potatoes prepared by chef Julio Perez of El Salvador.

28

Potato Country

February 2017

Know Your Insects Answers (from page 23)

1. Insect A is the pupa of a moth, probably an armyworm or looper (pupae are very hard to identify). Insect B is a fly and a member of the largest group of flies, the pupae of which develop inside the hardened skin of the full-grown larva; this larval skin plus pupa is called the puparium. Insect C is another fly, a member of a more primitive group of flies in which the pupae cast off the final larval skin.

New ideas for appetizers featuring Idaho potatoes were on display at a foodservice training event in Guatemala.

2. The pupa of insect A will be found in the soil, where the pupa hides as it develops into an adult. The flies in the second photo were taken from a tuber rotting in a storage; the fly on the left we might call a “fruit fly” similar to what infests uneaten fruit on our kitchen counter, and the second pupa is a fungus gnat.

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Potato Growers of Washington

The Need for Stable Prices and Lower Risk By Dale Lathim, Potato Growers of Washington

A

s any industry matures, the principals who make up that industry consolidate and get bigger and bigger. As this consolidation takes place, the competition between entities becomes fiercer and fiercer, which drives prices and margins down. Only the economies of scale and efficiencies allow the remaining parties to be profitable. I have touched on this subject before, but it needs to be addressed from time to time as too many growers want to look back at the “glory years” and wonder why it can’t be like that again. But those times will not be coming back any time soon – or ever – in my opinion. The competition and consolidation will continue to increasingly drive down margins for both processors and growers. The survivors will continue to increase yield and quality to keep profits at reasonable levels while costs of production will continue to rise. The best tool to help growers through these times is a stable contract price with reduced risk. This has been our focus at PGW for several years now. This past year, we managed to take significant value out of

incentive/decentive clauses while adding to the base price. This flattens out the contract when quality fluctuates which reduces risk to the grower but still compensates both sides for high or low quality potatoes, just not as much as before. When profit margins were high, growers could “afford” to roll the dice on high-risk, high-reward contracts because the upside more than made up for the downside risk. Today’s contracts do not have the profit margin in them to make up for the downside risk that was present a few years ago and many would argue is still present today. Continuing to reduce the risk in the contracts will have to be a major focus for years to come. Besides reducing risk, it is even more imperative to have stable pricing. Since the margins are not what they used to be and will not be coming back to those levels, growers cannot ride the ups and downs of market fluctuations. This is one of the hardest concepts for us to share with growers. As costs of production vary, we need to be very careful about adjusting the contract price as we are always finalizing and approving our contracts before a single acre of potatoes is planted and up to 16 months before the final payment will be received for the potatoes grown under that contract. A lot can change between the time the contract is approved and the final input

Know Your Disease Answers (from page 11)

Photo A: These tubers are both affected by bacterial soft rot caused by Pectobacterium carotovorum (formerly Erwinia carotovora subsp. carotovora). The white fuzz is fungal growth and is not the cause of the decay. Rather, this fungus is growing due to the moisture and release of nutrients resulting from the wet breakdown of this tuber. Photo B: The white-yellow fuzz in this case is a species of Fusarium capable of causing dry rot, and this has caused the initial breakdown of this tuber. Bacterial soft rot has started to develop as a secondary problem. Photo C: This black fuzz is the sporulation of Helminthosporium solani, cause of silver scurf. This fungus does not cause a decay of the tubers, but does cause a surface blemish which can make tubers unmarketable. Infection by this fungus can also accelerate water loss of tubers and increase dehydration in storage. Photo D: This tuber is infected with Phytophthora infestans, cause of potato late blight. The external fungal fuzz is not the cause, but a secondary result. Late blight causes a dry rot, but other bacteria can invade and cause secondary soft rot. The soft rot can cause growth of many non-pathogenic fungi which live on the surface of the tuber. This is similar to the situation in Photo A.. 30

Potato Country

February 2017

is purchased. Taking a very conservative approach to contract pricing is the safest way for both growers and processors to navigate the ever-changing prices of inputs. Potato contracts have been the one consistent, stabilizing economic factor in the ag sector of the Columbia Basin for the past several decades. In the last 10 years, we have seen wheat, alfalfa hay, beans, corn and sweet corn all increase in price by more than 30 percent and as much as 80 percent. Their profit margins went way up and instead of being the drudge of the industry, they were the shining stars. Now their prices are back down to nearly as low as they were 10 years ago, but the cost of producing those crops has gone up by nearly 50 percent. The shining stars of profitability are once again the crops no one really wants to grow because they are almost always a sure money loser. When other commodity prices were skyrocketing, the industry leaders who are on the board of directors at PGW opted to cap the contract price increases each year at the same rate as the cost of production increased. Because we are finalizing these contracts in advance of most of the grower purchases, it is not a perfect world and not all of the cost increases were able to be included, and that has added to the shrinking margin. But as commodity prices have declined, we have continued to cap the change in price with the change in the cost of production as much as possible. So today, while the other commodities’ “glory days” flamed out fast and are back in the toilet pricewise, potato contracts still are maintaining some profitability, and for those growers who are able to have great crops, they are the most profitable commodity on the farm. We are doing everything we can in these challenging times to keep your operations profitable. Your support is greatly appreciated!

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A balanced fungicide can work wonders.

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