Seed Potatoes


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PotatoCountry.com • November 2017 Western focus. National impact.

In the Valley

Greenhouse Growing Seed Reports 7,664' Up

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w w w . Po t a t o Co u n t r y . c o m

Vol. 33 No. 7

PO Box 333 Roberts, Idaho 83444 Phone: (208) 520-6461

Country Western focus. National impact.

Table of Contents

November 2017 6

Contacts Dave Alexander [email protected] Publisher, Advertising

Denise Keller [email protected] Editor

Andy Jensen.......................................... www.nwpotatoresearch.com Insect Identification

Jeff Miller .....................................................jeff@millerresearch.com Disease Identification

Bruce Huffaker ................................................. [email protected]

In the Valley

Market Report

Dale Lathim ............................................................... [email protected]

Arnold Farms

Potato Growers of Washington

12 Greenhouse Growing Jackson-Brush Plant Lab

15 Planting Essentials Buyers' Guide

Brian Feist [email protected] Operations Manager, 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]. ADVERTISING 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].

17 Optimizing Airflow

SUBSCRIPTION INFORMATION U.S. $24 per year / Canada $40 per year / Foreign $80 per year Subscriptions can be entered online at www.potatocountry.com or call (503) 724-3581. Email address changes/corrections to [email protected] or send to Potato Country, PO Box 333, Roberts, ID 83444.

18 7,664' Up: Pests Struggle,

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.

Storage Tech

Growers Thrive

Price Farms

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.

Editorial Board

24 2017 Western Seed Reports 30 French Fry Industry Remains Very Profitable

Potato Growers of Washington

On The Cover Jeremy, Dennie and Eric Arnold with Arnold Farms grow seed potatoes in Teton County, Idaho.

Bill Brewer

Chris Voigt

Executive Director

Executive Director

Washington State Potato Commission

Oregon Potato Commission

Kent Price reviews proper GAP procedures with his field workers before the start of the 2017 harvest. See story on page 18.

(509) 765-8845

(503) 239-4763

See story on page 6.

Departments 10 In the News 23 Calendar 28 Market Report 4

Potato Country

Nina Zidack

Frank Muir

Jim Ehrlich

Montana Seed Potato Certification

Idaho Potato Commission

Colorado Potato Administrative Committee

Director

November 2017

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In the Valley Story and photos by Dave Alexander, Publisher

Teton County, Idaho has spectacular scenery and seed potatoes.

Scenic Teton Valley, Idaho, is perhaps best known for its fly fishing, promoting itself as one of the finest dry fly fisheries in the United States. Boasting a vigorous population of native cutthroat trout, “the Valley,” as locals call it, sees many tourists in the summer who want to play on the quiet side of the Teton Mountains. Felt is an unincorporated community in the area. It is without a traffic light, without a store and without a post office. What Felt does have, though, is a successful seed potato grower with deep roots in the Valley and the potato industry.

Valley Roots

Dennie Arnold and his sons, Eric and Jeremy, with Arnold Farms are third- and fourth-generation seed potato growers in Felt, Idaho. Arnold Farms’ roots were planted in Teton Valley in 1918, when the fishing must have been nothing short of spectacular. Dennie’s grandfather and his family were raising sheep when they realized that they were on good, deep soil. They became some of the first farmers in Felt. With 480 acres, they grew barley and wheat without irrigation. Dennie’s grandfather, having lived through the Great Depression, wanted nothing to do with taking on the debt to drill a well, so they remained a dry farm. Dennie’s dad took the financial leap and drilled the first well in Teton County in 1967. From there, Dennie and his brother Bruce grew potato seed until 1982 when the brothers split into two farms, opening the door for Jeremy and Eric to join Dennie’s operation.

Eric (left) and Jeremy Arnold adjust a pivot.

Dennie Arnold gets some early-morning work done in his office.

Industry Advocate

Dennie has served on various potato boards and councils since the 1970s. Potatoes USA, National Potato Council (NPC), United Seed Potato Growers of Idaho, Potato Growers of Idaho and Idaho Potato Commission have all benefitted from Dennie’s knowledge and experience growing seed potatoes. Always an innovator, Dennie won the NPC Environmental Stewardship Award in 2001. Though aerial spraying was the norm, the grower switched to a field sprayer to help protect the sensitive rivers in the Teton Valley. Dennie and his wife, Janet, have traveled so much in the winter over the years to potato meetings that she is looking forward to a time when they can go on a vacation and pick a destination that has nothing to do with potatoes. But Dennie doesn’t have much time for vacations or casting flies in

the nearby Teton River. He is still active on the farm every day, though his sons now do most of the heavy lifting. The Arnold Farms crew transfers spuds into the cellars.

Arnold Farms One Big Family

A typical day for Dennie involves overseeing the farm’s finances, paying bills or running errands. Along with general farm operations, Eric handles chemical and fertilizer acquisition and application, and Jeremy takes care of shipping and keeps parts flowing in the shop. Farm manager, Chuy Olivas, started with the Arnolds when he was 13 years old. Now in his 50s, Olivas manages the staff, including Sam Villa who has also been at Arnold Farms for decades. “This whole deal is like one big family. The employees treat this farm like it’s their own,” Dennie says. He is appreciative that he can come and go as he needs to most of the time because of his sons and excellent staff. The family has 6,000 total acres and grows barley, spring wheat, winter wheat and hay, in addition to seed potatoes.

Clean, High-Performing Seed The farm’s 1,300 acres of seed potatoes benefit from the Valley’s high altitude of

From left, Chuy Olivas, Jeremy Arnold and Eric Arnold take a quick break during harvest in Teton County.

6,100 feet, according to Eric, but rigorous sanitation methods account for its clean, high-quality, disease-free seed. Jeremy says they spend a lot of time disinfecting sheds and equipment - two to three times a year, plus in between lots. They take pride in their high industry standards. The sheds are inspected by the Idaho Crop Improvement Association for cleanliness. Potatoes are grown three to four years in rotation, keeping a check on volunteers.

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Potato Country

November 2017

Seed is flushed out every year, and the Arnolds go to great lengths and expense to ensure they start with the highest quality seed. They plant Generation I and II seed from Montana, North Dakota and Nebraska and sell it as Generation III seed. Isolation also plays a part in producing clean seed. The Arnold fields are accessed by roads only locals know, and it snows up to five feet per year with drifts 10 feet deep.

The Arnolds have a constant view of the Grand Tetons when the weather allows.

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Eric Arnold checks the 2017 seed crop in Felt, Idaho.

from FIELD

LD

to TRUCK

fr o m

Rolling Along

FI E

Varieties include Russet Burbank, Ranger Russet, Clearwater Russet, Teton Russet and a variety of Russet Norkotahs. Fred Dormaier with Teton Seed Marketing Association markets some of the Arnolds’ seed. Their own customer base covers Washington, Oregon and Idaho. If you are going to farm or fish in Teton Valley, you have to be prepared to adapt to the weather or try a different fly. The Arnolds have had to start and stop harvest several times this year because it’s been unusually rainy. The crop looks good, however, and “it will get done sooner or later,” Dennie says casually. Though Janet looks forward to Dennie’s retirement and choosing her own vacations, Dennie doesn’t plan on retiring anytime soon. He said he really wouldn’t know what to do with all the free time. He has given up on fly fishing, but does admit to a penchant for golfing with friends and family. If you are looking for a place to cast a fly or are fishing around for potato seed, consider Teton Valley and drop a line to Arnold Farms at the base of the beautiful Grand Teton Mountains.

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In the News

Lender Predicts Profits in Potatoes

The producers of most commodities should enjoy “slightly profitable results,” according to Northwest Farm Credit Services’ quarterly Market Snapshot publication. “Contract potatoes are expected to be slightly profitable throughout the season. Uncontracted potatoes may slip toward breakeven during harvest but are expected to be profitable later in the season,” the report states. “Growers report average yields for early harvested potatoes despite late planting. The USDA reports Idaho producers planted 4.6 percent fewer acres of potatoes in 2017.”

Japan Reopens for Idaho Chipping Potatoes

For the first time since 2006, Idaho can once again export chipping potatoes to Japan. In February 2006, Idaho chipping potatoes became the first U.S. fresh potatoes exported to Japan in over 60 years. Several months later, however, Japan closed its market for Idaho potatoes due to the detection of potato cyst nematode in the state. In the decade since the original nematode finding, Idaho and the federal government implemented an official control program to delineate, control and eliminate the pest in the state. Idaho now rejoins 15 other states with approval to export to Japan. Exports from these states are allowed to enter Japan between Feb. 1 and July 30 of each year. Japan is the largest export market in Asia for U.S. chipping potatoes, and 2016 was a record year for U.S. chipping potato shipments to Japan with $19 million in exports, according to Potatoes USA.

IPC Appoints First Female Grower

The Idaho Potato Commission (IPC) has appointed Mary Hasenoehrl of Gross Farms as its newest commissioner. She is the first female grower to be appointed to the commission. “I’m looking forward to working with Mary, who has a long and impressive background in farming and agriculture,” said Frank Muir, president and CEO of the IPC. “I have no doubt her perspective and experience will help us as we build impactful marketing programs to reach our primary target audience, women ages 25 to 54.” Randy Hardy of Hardy Farms and Nick Blanksma of Legacy Farms were also sworn in this fall to serve second three-year terms on the ninemember commission.

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Potato Country

The National Potato Council (NPC) has selected Adrienne Gorny, a fourth-year doctoral student in plant pathology and plant-microbe biology at Cornell University, as the recipient of the 2017-2018 NPC Academic Scholarship. The $10,000 award is provided annually to a graduate student with a strong interest in research that can directly benefit the potato industry. Gorny’s research focuses on Northern root-knot and lesion nematodes in potatoes. Her work involves frequent collaboration with New York potato growers for on-farm trials, and her research is focused on helping the industry make informed decisions about nematode control measures. After completing her doctoral program, Gorny hopes to work at a university with a research/extension component or to work for USDA’s Agricultural Research Service.

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Greenhouse Growing Story by Denise Keller, Editor Photos courtesy Jolene Brush

F

or Jolene Brush, there’s a certain satisfaction in growing plants and producing food. And having a hands-on role in the earliest stages of the potato crop provides a “simple life” not always found in farming today, she says. Tucked away in Norris, Montana, with 10,000 square feet of greenhouse growing area, the Brush family produces tissue culture and mini tubers for 20 to 25 of Montana’s seed potato growers.

Filling a Need

Brush didn’t always imagine that she would make a career in potatoes, but it has worked out to be a blessing. After graduating from Montana State University

(MSU) with a degree in horticulture science in 1986, she started working at the MSU potato lab. She was involved with plant pathology and disease testing and helped maintain the lab’s tissue culture plants. Brush left the lab to stay home when she and her husband, Jerry, started a family. But her time away from potatoes didn’t last long. In the early 1990s, a seed grower approached her about doing some tissue culture work because demand for the plantlets was greater than the supply available through the MSU lab. Brush set up a lab in her garage and began growing tissue culture plantlets. In the mid-1990s, a customer asked

Parker Brush stacks 10-pound bags of seed potatoes in the cellar after harvest.

if she could grow mini tubers, an option not offered to seed growers elsewhere in Montana at the time, Brush recalls. So the Brushes built their first greenhouse. The customer liked the added convenience of the mini tubers compared to plantlets, word spread and business grew. Today, the Brush family’s potato operation fills four greenhouses. While they used to grow mostly Russet Burbank, they now grow between 40 and 50 varieties. About 75 percent falls into the russet category, including Russet Burbank, but also Clearwater Russet, Ivory Russet and Russet Norkotah. Brush also grows small amounts of a large number of specialty varieties such as Purple Viking and Purple Pelisse as well as several reds and yellows.

Producing Clean Seed

Brush starts her season in January with tissue culture plantlets she obtains from MSU. She multiplies them in her lab before planting them in the greenhouse in May. She harvests the crop in September and stores the tubers in a small cellar or delivers the seed directly to customers. Throughout the year, and especially during the crop’s four months in the greenhouse, disease control is a top priority for Brush. Her main concerns are the threat of potato late blight spores and aphids carrying Potato Virus Y. “The main reason we grow potatoes is to provide our customers with disease-free seed,” she says. “It’s my livelihood. I can’t really have any disease in the crop. There’s a zero tolerance for any viruses, late blight or other diseases, where there’s a small tolerance allowed for later generations of seed.” As a safeguard, Brush sprays for late blight and aphids, and she keeps aphid-resistant nets in the greenhouse entryways. Sanitation is also stringent. She makes sure everything is clean going into the greenhouses. Workers wear clean clothes, shoes, gloves and kneepads. Equipment and tools are not shared between greenhouses, and the buildings are disinfected prior to planting. 12

Potato Country

November 2017

Erin Brush increases plant numbers while helping her mom, Jolene Brush, in the tissue culture lab.

The farm’s location helps reduce the risk of disease, as well. The farm is “extremely isolated,” Brush says, with the nearest neighbors three miles away. She deliberately does not grow any potatoes outside the greenhouses – even in her garden – and starts all garden and house plants from seed to keep disease from being brought onto the farm. Montana’s cold winters also help control the population of pests and pathogens. “We’re always concerned with disease, no matter what. It would be so easy for late blight to blow in on a storm,” the grower explains. “I’m always glad to get the tests back and it says ‘zero disease’ and glad to

have the potatoes in the cellar.” In addition to disease management, the amount of hand labor involved in pre-nuclear seed production also presents a challenge. Potatoes are planted and harvested by hand, and tubers are packaged in 10-pound bags. The crews have to take great care to ensure varieties are kept separate. The process is time consuming, and it can be difficult to find help in the rural area. On the upside, weather is of minimal concern in greenhouse production. Heaters can be used if temperatures get too low in early spring or late fall. This summer, however, included some hot days, which

Jolene Brush checks the health of potato plants growing inside a greenhouse a few weeks before harvest.

may have somewhat reduced yield, Brush says. Most recently, the grower has been working to fine-tune the crop’s tuber size profile to accommodate an increasing number of customer requests for 1- or 2-ounce single-drop seed.

The isolation and high elevation of the Brush family’s Montana ranch help prevent disease in their pre-nuclear seed potato crop. Pictured, from left to right, are Jerry and Jolene Brush with their children Dale, Lane, Parker and Erin.

Jackson-Brush Plant Lab Farming as a Family

The Brush family keeps busy with not only potato production, but mint and cattle, as well. A fifth greenhouse on the farm holds the mother block for the Mint Industry Research Council. Brush maintains and propagates all the mint varieties in the U.S. plant bank and sells plug plants to U.S. mint growers. The family also raises 220 cattle on their ranch, which has been in Brush’s family since 1871. Although the focus of the farm has grown from cattle ranching to also include seed potato production, it remains a family business, Brush says. She takes the lead in the tissue culture lab, while Jerry takes care of maintenance on the greenhouse buildings. Their oldest son, Parker, 25, works fulltime on the ranch. Their three younger kids, ages 18 to 24, help on the farm when they’re home. “I'm thankful for the blessing of owning a small at-home business. For me, producing greenhouse mini tubers for Montana growers has been a dream come true. It has diversified our small cattle

Jerry Brush (center) and son Lane (right) sort and bag seed during harvest while daughter-in-law Cassidi (left) places a bag of seed on the scale.

ranch that has been in our family for five generations,” Brush shares. “I enjoy dealing with Montana potato growers. They’re some of the nicest people

Growing Quality Seed For 50 Years!

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Potato Country

November 2017

you’d ever want to work with,” she adds. “I'm proud to be a part of the reputation that Montana growers have for producing clean seed.”

Jolene Brush works in her lab to multiply Russet Burbank plants in tissue culture.

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www.spudnik.com Planter, Crop Cart

Spudnik’s planter offers planting accuracy, ease of use and minimal maintenance costs. The heart of the planter is the row unit, which has a proven track record with thousands used throughout the world in a variety of conditions. The planter is available as a conventional planter in four-, six- and eight-row configurations, as well as a bed planter in a five-, six-, seven-, nine- and 10-row setup. Also from Spudnik, the Crop Cart adds convenience to the planting process. Rather than bringing the planter to the seed, the Crop Cart brings the seed to the planter, resulting in improved planting efficiency. With a maximum payload of 700 sacks, the Crop Cart can easily fill four six-row planters before needing to be refilled. In addition to planting, the Crop Cart can be used at harvest for potatoes, sugar beets and many other crops, and also as a field spreader.

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Our isolated northern location along with our group of 10 experienced growers have been producing exceptional seed potatoes with increased energy and the lowest possible disease levels for over 50 years. Our longevity and historical performance have made us a valued resource and seed potato supplier to growers across North America and the world. With over 100 varieties including main crop and specialty selections, we invite you to give us a call to discuss how we can help you make this growing season the best one yet.

Contact Darcy Olson for the latest info on availability of varieties & generations

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COTTOM SEED, INC. • Russet Burbank • Ranger Russet • Norkotah Selection 3 •Norkotah Selection 278 Visitors are always welcome! 1750 E. Bench Rd., PO Box 445, Dillon, Montana 59725

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Potato Country 167820MonPot13h.indd 1

November 2017 9/18/17 11:45 AM

Storage Tech

Optimizing Airflow The Benefits of an Integrated Approach By Bob Hesse, Director of Research and Development, Suberizer

A

INTEGRATED RAW PRODUCT STORAGE AIRFLOW From OUTSIDE AIR, RETURN AIR, or BOTH

a MIXING CHAMBER

a DX REFRIGERATION

or

COILS

BYPASSED

a PANEL FAN ARRAY

a HUMIDIFICATION

or

CELL

BYPASSED

a PLENUM

a DUCTS and AIRFLOW VENTS

a RAW PRODUCT IN STORAGE BAY

a

ppropriate airflow to the product in storage is regarded as the lifeblood of successful storage performance. Several storage elements directly impact airflow pressure losses, and thereby reduce operating costs, including engineering, fanhouse arrangement, system details, storage arrangement, storage details and air distribution to the product in the storage bay. Raw product storage involves the constant quest to minimize potato losses and maintain product quality during storage. Therefore, the task is to uniformly distribute the desired airflow to the product in the storage bay by minimizing airflow pressure drops along the way. An integrated approach involves engineering every aspect of airflow to minimize pressure drops. Benefits begin with air entering the fanhouse mixing chamber. Consider the airflow diagram. The total desired airflow will be limited by any aspect in the airflow diagram that is not optimized. For example, an external fanhouse can minimize changes in the airflow path to minimize turbulence and losses and, consequently, increase airflow to the product in storage. An integrated approach to storage design significantly reduces pressure losses and resistance to airflow and assures that the desired airflow actually reaches the product in storage. Without an external fanhouse, it’s not possible to minimize losses, and provide clean, direct, low-velocity airflow to a well-designed plenum. Fanhouse-toplenum design is another integrated approach detail, which minimizes velocity pressure losses to air entering ducts. The result is a “puffed-up” plenum with ducts that provide well-designed, extremely uniform airflow to the product in storage via uniformly spaced air floor vents. It's all about airflow. Editor's Note: This is the second installment of a five-part series on storage technology. Look for "When an Integrated Approach Matters" in the December issue of Potato Country.

EXHAUST, RETURN or BOTH

PotatoCountry.com

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7,664' Up:

Pests Struggle, Growers Thrive Story and photos by Bill Schaefer

From left, Duane Price, Andrew Price and Kent Price inspect a pile of potatoes prior to the start of harvest.

I

t was here in Colorado’s San Luis Valley, ringed by the Sangre de Christo mountain range on the east and the San Juan mountain range on the west, at an average elevation of 7,664 feet that James Truman Price, known as Truman, bought 280 acres in 1965 and began growing potatoes. With cool nights, warm days, clear blue skies of intense sunlight and limited pest pressures, the high desert of the San Luis Valley is considered to be one of the better potato growing regions of the United States. Truman Price moved his family from Hereford, Texas, and started his potato operation in 1966 with one tractor, one harvester, one piler, two planters and one truck. In 1973, Price Farms started a certified seed program. Until 1973, the grower had concentrated his potato operation on the fresh market. The venture in growing potato seed lasted until 1976 when it was stopped due to inadequate storage facilities. Price Farms’ certified seed program would be renewed in 2000. Truman’s oldest son, Kent Price, joined the farming operation in 1987, and his younger son, Duane, came on board in 1993. When Truman retired in 2008, the farm had grown to 2,240 acres with six tractors, eight trucks and multiple harvesters, planters and pilers. Truman died in 2016.

Lucas Cano and Cipriano Gonzalez watch for debris as potatoes come out of a truck during the first day of harvest at Price Farms.

Current Operations

Kent’s son Andrew joined the farm five years ago. Today, Kent, Duane and Andrew manage a farm of just over 3,000 acres with 970 acres of potatoes. They maintain a two-year rotation between potatoes and alternate crops. Current rotation crops include malt barley, rye and quinoa.

Felipe Martinez walks under the loading conveyor as his truck bed fills with potatoes at Price Farms.

“I tend to do most of the management,” Kent says. “Duane tends to be the shop foreman and maintenance person, and Andrew will take on the agronomy side and he is actually kind of overseeing the spray regimen.” “We are all certified,” Kent says of the potatoes, “but 60 percent of the potatoes go to the fresh market.” The farm grows four varieties of Russet Norkotahs, along with Rio Grande Russet, Canela Russet, Pacific Russet, Modoc, Annuschka and Ciklamen. Kent says that he is seeing a slight increase in the demand for red and yellow potatoes but that russets continue to dominate the retail market. “Russets are king, but yellows are climbing and organics are picking up, too,” he elaborates. The Spud Seller and RPE handle fresh sales, and Kent oversees the seed sales with personal visits to his customers following the harvest season. “I’ll take them out, one-on-one facetime and say ‘what are we looking at? What are your needs?’” he explains.

Challenges, Solutions

Through the years, the grower has seen a bit of a decline in the San Luis Valley seed potato market. PotatoCountry.com

19

Price Farms Along with the farm work, he has served as the secretarytreasurer of the Colorado Certified Potato Growers Association (CCPGA) for the past six years. “He’s able to look at a budget and know how to keep our organization within the budget,” says Preston Stanley, the CCPGA manager. “He brings a wealth of financial stability. He knows how to run it, just super good with figures.”

New Venture

Two years ago Price Farms joined into a partnership with Salazar Farms and Three S Ranches in the southeast corner of the San Luis Valley in San Acacio, 80 miles south of Price Farms headquarters. Anna Escalon (right) pulls debris from a table of spuds during the first day of harvest at Price Farms.

“It’s very challenging to be a seed grower,” he says. “We’ve lost several of our seed growers. They’ve decided to go the commercial route instead. Our numbers are down. I think we’re down as far as we’re going to go, I believe.” Potato Virus Y (PVY) is always a concern among seed growers. Price Farms became a strong advocate for the use of crop oils for the reduction of PVY after a tour in Canada five years ago. The farm applies a mineral oil that is 99.9 percent pure. “We have a very aggressive rotation, about every five to seven days we spray our certified seed with crop oil,” Kent says. “It’s been real successful; it’s really turned my farm around.”

PVX GIII l RUSSET BURBANK l RANGER RUSSET l UMATILLA RUSSET

SEED INC.

l On-farm tissue culture laboratory and greenhouse facility for nuclear seed production l 4 year rotation on clean fields l Strict sanitation program throughout l Modern storage and handling facilities l Rigorous Spray Program

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Dan Tim

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Cole’s Corner

Farms, Inc. Umatilla Seed Potatoes

Attention to detail for over 40 years

Dan, Dave, Pat and Tim Lake

406-282-7287 • Cell 406-920-0793

35822 Spring Creek Road l Ronan, MT 59864

4620 Churchill Road Manhattan, MT 59741

(406) 253-3638 (office), (406) 676-2175 (fax) e-mail - [email protected]

20

Pat

The team at Price Farms reviews the Good Agricultural Practices prior to the start of harvest.

Potato Country

November 2017

Harvest season begins on Aug. 28 at Price Farms in Colorado’s San Luis Valley.

Each partner has a one-third interest in the 2,700-acre farm. Currently, San Acacio Seed is growing 480 acres of earlygeneration potatoes on the site with a three-year rotation. Price Farms then moves the seed up to its main farm to grow Generation III seed potatoes before selling Generation IV seed commercially. According to Kent, isolation was the motivating reason for the move south. Kent Price checks in with Elizabeth Ross, his bookkeeper for 15 years, prior to a meeting with his field workers and the start of the 2017 harvest.

MANHATTAN Seed Potato Growers Family Operations Committed to the Highest Standards in the Industry  Isolation Ideal for Insect Control  All Seed Summer and Southern Tested for Virus  Excellent Quality Controlled by Rigid Rouging and Sanitation Practices  Many Varieties Available with Good Readings  Top Yields and Tuber Uniformity from Years of Line Selecting  2017 Late Blight-Free Potatoes Eugene Cole Bill Cole Glenn & Vern Droge Dan Dyk Doug Dyk TRB Dykema Sid & Tim Kamps Bill & Scott Kimm Dan Kimm

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www.manhattanseedspuds.com PotatoCountry.com

21

Price Farms “We wanted a really isolated seed farm,” the grower says. “We’re at least 30 miles from the nearest potato grower, maybe further. The valley’s kind of like a cesspool in some ways, because we’re all so connected together. It’s easy for me to get the diseases from my neighbors, so that’s where you have to have the isolation.”

Ongoing Learning

Kent says that the two biggest challenges he has to contend with are keeping up with all the regulatory paperwork and constant changes in technology and equipment. “The sheer amount of paperwork anymore is becoming overwhelming,” he says, adding that he relies on his bookkeeper, Elizabeth Ross, to help keep the demanding paperwork up to date. “Being a certified seed grower, there’s a lot to keep track of.” He finds the winter meetings to be a good place to learn about recent innovations and the latest trends, from technology and equipment to new varieties and new in-field applications. He and his son, Andrew, take turns attending the Idaho Potato Conference in Pocatello each year. “They really deal with a lot of the scientific topics that we’re dealing with,” he says of the Idaho conference. “Things like black dot, silver scurf to pink rot. You can’t ever stop learning. You have to be constantly on top of the scientific side of it. It’s just changing so fast you have to be constantly teaching yourself.”

Araceli Guaderrame controls the speed of the conveyor belt unloading potatoes.

Crews remove debris from the sorting table during the first day of harvest at Price Farms.

Alberta seed potatoes are the best you can buy.

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Potato Country

November 2017

We have earned the confidence and trust of potato growers for over 30 years. See what everyone’s talking about. Potato Growers of Alberta www.albertapotatoes.ca

Calendar Jan. 10-12

Potato Expo 2018

Rosen Shingle Creek, Orlando, Fla. Visit www.potato-expo.com

Jan. 12-13

NPC 2018 Annual Meeting

Rosen Shingle Creek, Orlando, Fla. Contact Hillary Hutchins, [email protected]

Jan. 15-16

Spud School 2018

Shoshone-Bannock Hotel, Fort Hall, Idaho Contact TPS Labs, (956) 383-0739

Jan. 16–18

50th Annual Idaho Potato Conference and 39th Ag Expo Pond Student Union Building and Holt Arena, Pocatello, Idaho Contact Jill Randall, [email protected]

Jan. 23–25

Washington-Oregon Potato Conference

Three Rivers Convention Center, Kennewick, Wash. Visit www.potatoconference.com Editor’s note:To have your event listed, please email Denise Keller at [email protected]. Please send your information 90 days in advance.

2018 University of Idaho Potato Conference

39 th Annu Eastern Id al aho Ag Expo AG EXPO

Holt Arena January 16-18, 2018

Tuesday, 9 a.m. to 5 p.m. Wednesday, 9 a.m. to 5 p.m. Thursday, 9 a.m. to 1 p.m. Trade Show and 50th Annual University of Idaho Potato Conference

ISU Pond Student Union Building January 17-18, 2018

Wednesday, 8 a.m. to 5 p.m. Thursday, 8 a.m. to noon For more information call: 208-529-8376 Toll Free: 800-635-2274 Fax: 208-522-2954

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23

2017 Western Seed Reports oRegon

Seed Potato Crop

Montana

By Jeff McMorran, Oregon Seed Certification Service

P

By Nina Zidack, Montana Seed Potato Certification

T

lanting and harvesting conditions were near ideal in most of Oregon’s seed potato production areas this year despite some much needed rain in mid-September slowing down harvest a bit in some areas. However, 2017 will be remembered as a very hot, dry and smoky summer. Widespread wildfires in the state made access to, and reading of, many fields a challenge. Traffic congestion related to the total solar eclipse on Aug. 21 didn’t help in that regard, making it necessary to move up the second inspections a bit in some areas. So far, there is no evidence that the many smoky days adversely affected the seed crop Oregon had 3,181 acres of seed potatoes entered for certification in 2017, with 3,146 accepted for re-certification based on field readings, an increase of about 200 acres over 2016. The 35 acres that were not accepted were due to seed source eligibility or variety issues (e.g. lack of grower approval on proprietary varieties), not mosaic or other disease found during field inspections. However, harvest inspections were just beginning at the time of this writing, and final certification is dependent on winter grow-out readings. There continues to be a shift in acreage to the northern areas of the state with increases in the Gilliam/Morrow County area and two new organic seed growers in eastern Oregon’s Baker County. Though Oregon certified 57 acres in northern California this year, Nevada will now be certifying the single farm near Winnemucca that has been inspected by Oregon the last four years. We have also seen a continued shift in varieties produced, moving away from processing-type to more of the fresh market and specialty varieties. Fresh market types now make up 35 of the 51 varieties certified this year but still only account for 42 percent of the production acres. For more information on acres or varieties produced in Oregon, see the 2017 Field Readings and Statistics booklet at www.seedcert.oregonstate.edu/potatoes.

Seed Potato Crop

his year was an illustration that nothing is ever normal when it comes to describing an individual growing season. The spring was cool and wet, and the transition to summer was hard and fast. Temperatures were above average with very little precipitation. Thankfully, plant establishment was excellent in June, and rows closed for most growers before the hot weather took hold in early July. Water was plentiful from adequate snowpack, and plant stress was kept to a minimum. The hot, dry weather continued into mid-September but then took a drastic turn with rain and temperatures in the 40s. The wet weather delayed the start of harvest about a week for most growers. Harvest started in earnest the last week of September, and as of Oct. 6, some growers have completed harvest and most will be finished within a week. While we have had some frost, it appears to be very minor. Taking the hot weather during the growing season into consideration, Montana seed potato growers are very pleased with the overall quality of the tubers and the size profile. Montana seed potato acreage is 10,220 acres, which represents a minor reduction when compared to 10,398 acres in 2016. While Russet Burbank is still the dominant variety at 3,883 acres, this is an 11 percent decrease from 2016. The 489 acres of Russet Burbank that were lost were largely replaced by Clearwater Russet, which saw an increase from 353 to 698 acres, nearly double the acreage in 2016.

Cottom Seed farm in Dillon, Montana

Dammer Diker/Tillage Master 800-627-9099 or 509-582-8900 www.dammerdiker.com

24

Potato Country

November 2017

Teton Russet also saw a dramatic increase from 91 to 194 acres. Umatilla Russet is the second most widely produced variety in Montana and was up 110 acres to 1,789. Ranger Russet and the Russet Norkotah selections were both down 2 percent to 1,122 and 1,100 acres, respectively. Alturas was down 13 percent to 637 acres. Shepody, while still a minor variety, increased 40 percent to 106 acres. In total, there are 54 varieties of potatoes registered for certification.

WaShington Seed Potato Crop

By Jeff Bedlington, Washington State Seed Potato Commission he 2017 Washington seed potato growing season is nearly in the books, producing average yields of superior quality seed potatoes. Unlike the early start to the 2016 growing season, 2017 began with a wet spring that brought its share of challenges during the planting season, delaying planting by roughly 10 days. After a damp start, the weather broke near the end of the planting season to produce ideal growing conditions that, when paired with a busy irrigation season, brought average to above average yields with a desirable size profile. Furthermore, disease, blight and insect pressure was minimal, which produced excellent quality seed stock for the 2018 growing season. Entering the harvest season, timely rains produced ideal soil moisture levels, allowing for optimal digging and storage conditions. Overall, Washington seed production acreage increased 120 acres over last year, with more than 3,500 acres of seed grown for certification. The majority of these acres were grown in the seed potato isolation district in the far northwestern corner of the state. More information on Washington seed potatoes can be found on the Washington State Seed Potato Commission website at www.waseedpotato.com. Official inspection reports are available on the WSDA website at www.agr.wa.gov/PlantsInsects/ PlantCertification/CertPrograms/SeedPotatoCertification.aspx.

T

Kimm Brothers Farming, LLC

Manhattan, Montana

Russet Burbank & Ranger Russet Certified Seed Potatoes “Satisfied Customers for Over 40 years”

Martin & Sue 406/284-3378 Cell Phone 406/580-4537

•PVX and PVY Tested •Rigid Sanitation •Beautiful Crop •Isolated Area •Visitors Welcome •Gen. II & III Available

Taylor & Casie 406/580-1745

Spudequipment.com Pilers

1994 Double L 811 30” x 49’ 1992 Spudnik 525 30” x 48’ 1991 Double L 813 30” x 49’

Conveyors

2014 Logan Telescopic 36/42/65 230V 3ph 2006 Spudnik 1200 36” x 35’ 230V 3ph w/ hyd tip dwn 2002 Spudnik 1250 30” x 40’ 230 V 3ph 2002 Spudnik 1250 30” x 40’ 230V 3ph 2002 Spudnik 1250 30” x 30’ 230V 3ph 1998 Spudnik TC 36/42/65 230 V 3ph 1993 Double L 809 SC 30” x 38’, 3ph - 10 1993 Double L 808 SC 30” x 25’, 3ph 1996 Double L 820 TC 30” x 60’, 3ph 1994 Milestone TC 30/36 x 60’, 3ph – 2 1992 Milestone 30” x 30’ reconditioned 1990 Spudnik 1200 30”x 30’ 230V 3ph

Dirt Elim./SIZER

03 Spudnik 995 72” BC Peg Belt, Finger rolls, sizer, 3ph 02 Milestone MSDES 72” 230 volt 3ph 00 Milestone 72” BC Fingers Sizer Clod drum, 3ph 97 Spudnik 995 60” DE/Sizer 3ph 94 Spudnik 900 Sizer 72” 230V 3ph Vsp pulleys 89 Milestone 72” Belt, Finger Rolls, Sizer, Table 1ph

Dirt Eliminators

99 Milestone 60” Finger rolls, Table, 3ph 98 Milestone 48” Finger rolls, Table, 3ph 96 Milestone 72” Belt, Finger rolls, Sizer, Table, 3ph 89 Spudnik 950 72” BC, fingers, Belt Table, 3ph 94 Double L 806 DE 44” 230 volt 3ph 87 Spudnik 900 48” 220 volt 1ph 87 Better Built 42” 220 volt 1ph 76 Spudnik 900 48” sorter

Rock/Clod/Eliminators

2012 Harriston Clod Hopper 4240 x 4-96”drums 2007 Harriston Clod Hopper 240 x 2 -96” drums 2000 Harriston Clod Hopper 200 x 2-80” drums 1995 Harriston Clod Hopper 200 x 2-80” drums 1994 STI 1260 Sand Machine

Even Flows

2016 Milestone 100cwt with pup 1993 Spudnik 1800 600cwt Shop built 150 cwt

Stingers

1994 Double L 30” x 12’ belt 1988 Spudnik 2200 30” x 10’ BC fingers x 2

Beds

2007 Ag Bulk Bed 20’ Combo pto/elec Red 1995 Logan 90series 20’ Combo White 1995 Double L 801 20’ Electric White 1990 Double L 801 20’ Electric White 1985 Logan 20’ Electric Red

Trailers

2003 Red River 2axle 45’, pto, full swing door, plastic liner, chain oiler, solid belt 2002 Trinity 3 axle 49’ w/31” chain full swing door

Crossovers/Wind Rowers 2005 Spudnik 6140 Four Row RH 34” 2008 Spudnik 6140 Four Row LH 2008 Spudnik 6140 Four Row RH 2007 Double L 851 Four row 2003 Lockwood 554 Four Row RH 2003 Lockwood 5000 Four Row LH 1995 Lockwood 2000 Two Row RH 1993 Lockwood 2000 Two Row LH

Harvesters

2016 Lockwood 674 Swing Boom 16 row rated 2014 Lockwood 574 2012 Lockwood 474 CR 2008 Lockwood 474H 2005 Spudnik 6400 2003 Lockwood 474H 2002 Double L 853 2000 Double L 873 1994 Logan 90 series two row

Seed Cutters 2013 Better Built 72” 2011 Milesetone 72” 2000 Milestone 60” 1996 Milestone 60” 1994 Milestone 48”

Treaters

2011 Better Built 10’ x 10” 2008 Excel Liquid & powder 10’ x 10” 1989 Better Built 10’ x 8”

Planters

2014 Lockwood 6 row Pick 36”row Fertilizer 2010 Lockwood 6 row Air Cup 36” 2009 Lockwood 6 row Pick 34” Mechanical 2005 Lockwood 6 row Pick 36” 2003 Kverneland 3300 Six row 34” 1996 Kverneland 3200 Four row 36” 1994 Logan Four Row cup 36” 1993 Logan Six Row cup 36”

Planter/Tare/Piler

1996 Double L 815 24” x 24’ 1990 Milestone Utility PIler 16” 1978 Milestone Utility Piler 12” Shop Built 18” x 18’

Water Dammers

2017 Logan Yield Pro 6 row 1993 Ag engineering Six Row 1991 Ag Engineering Four Row Hyd reset Milestone 6 row Water Saver Spring shanks

Shredder/Vine Beaters 2005 Newhouse 2520 eight row 2001 Newhouse 4 row tire roller 1992 Ace 4 row steel rollers

Warehouse/Packaging

2017 Tri Steel Double Tote filler Odenburg Halo 1000 40” optical grader 2yr use Odenburg Halo 1500 60” optical grader rebuilt 2016 Odenburg Halo 2000 80” optical grader 2yr use 2011 Tong & Peel Roll Sizer 4 drop large volume, gently Exeter 10 lane sizer with laser camera sizing 2012 Daumer CB 67 Wicket bagger 2012 Kwik Lok 865 Bag closer 2004 Daumer PA 25D Auto Weighing Machine Stainless 1997 Daumer PA 25 Auto Weighing Machine Even Flow 10’ W x 7’ T x 29’L 750 cwt 18” tilt 18” discharge 2001 Tri Steel Conveyor 18” x 9’ 2013 Tri Steel Elev. Conv 12” x 21’ flights 2000lb Tote filler single and double shop built

Miscellaneous

2015 Great Plains 7329 DH Tandem Disk 29’ 2011 Brandt 13 x 70 swing Auger 2009 Wishek 714 NT 30’ Disc 2011 Great Plains 5317 Turbo Chisel John Deere 24’ Folding Drills 6” Landoll 2230 Disk 26

Bruce: (208)390-5120 | [email protected] Evan: (208)757-8481 | [email protected] PotatoCountry.com

25

2017 Western Seed Reports

idaho

Seed Potato Crop

By Alan Westra, Idaho Crop Improvement Association (ICIA)

A

t the conclusion of the second round of field inspections, a total of 32,587 acres were accepted for certification this year. This is down approximately 2.2 percent from last year. Excluding proprietary genetics, the 2017 acreage accepted for certification represents a total of 148 varieties, selections and advanced clones. There was some movement in varietal acreage in 2017. The top varieties were Russet Burbank (39 percent of total), Russet Norkotah (all strains, 17 percent), Ranger Russet (11 percent), Clearwater Russet (3.1 percent), Alturas (2.8 percent) and Umatilla Russet (2.85 percent). Acreage of Russet Burbank and Russet Norkotah is essentially unchanged from last year. There is a significant increase in the acreage of Clearwater Russet (up 42 percent over 2016), while acreage of Ranger Russet, Alturas and Umatilla Russet is reduced significantly (down 7.5, 30 and 28 percent, respectively). A complete listing of this year’s seed potato crop is available in the 2017 Idaho Certified Seed Potato Directory, posted on the Idaho Crop Improvement website at www.idahocrop.com.

ColoRado Seed Potato Crop

By Andrew Houser, Colorado Potato Certification Service

I

n 2017, warm temperatures in June were followed by a record-setting 3.3 inches of rainfall in the month of July. The excess rainfall has not appeared to affect tuber quality, however. Hailstorms were limited, but impacted yields of affected fields. Certified seed growers began vine killing in late July and early August, sacrificing yields, but limiting potential spread of virus by aphids. As of Oct. 1, roughly half of the potato acreage has been harvested in Colorado. Overall yields and sizing have been hovering around average. Certified seed growers are in the process of submitting seed lot samples for the post-harvest test which takes place at the north shore of Oahu, Hawaii. Colorado certified seed potato acreage was down overall from 11,339 acres in 2016 to 10,093 in 2017. Total potato acreage in the San Luis Valley, including the seed crop, was 51,848 acres, up 946 acres from 2016. The total accepted certified acreage after summer field inspections was 9,713 acres. Rejections were primarily the result of Potato Virus Y/mosaic, with a few rejections caused by blackleg and variety mix. The predominant certified potato varieties in Colorado are Russet Norkotah selections, Canela Russet, Centennial Russet, Teton Russet and Rio Grande Russet. Multiple varieties of other russets, reds, yellows, chippers, fingerlings and specialties are also certified in Colorado.

Matthews Farms in Oakley, Idaho

Planting this year was normal for many growers with only minor delays due to weather. At the time of writing this report, harvest is slowed due to rain. Growers are reporting normal to very good yields. Quality going into storage is reported as good to excellent. Seed health appears to be steady from 2016, with normal amounts of Potato Virus Y and zero bacterial ring rot detections during field inspections. Seed availability is predicted to be essentially unchanged from 2016.

Salazar Farms in Antonito, Colorado

A 2017 certified seed directory is posted online at http:// potatoes.colostate.edu/potato-certification-service. The Colorado Seed Act requires all seed lots imported into Colorado to undergo a post-harvest test or winter grow-out. Seed growers intending to ship into Colorado should contact their certifying agency for submitting samples for post-harvest testing. Also, there is a late blight quarantine in effect for all seed coming into the San Luis Valley. Anyone planning to ship seed into the valley needs to have this test conducted by a qualified lab prior to shipment. For details, visit http://potatoes.colostate.edu/ wp-content/uploads/2014/02/Late-Blight-Quar-2014.pdf. 26

Potato Country

November 2017

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PotatoCountry.com

27

Market Report

Positive Outlook for Potato U

.S. 2017 potato production will fall short of the 2016 crop. What appeared likely, once USDA published its first acreage estimate for the 2017 crop, is clear now that the fall harvest is underway. As we go to press, more than half of the U.S. crop is under cover. Growers are experiencing numerous challenges during the harvest, including heat, rain delays and the potential for frost damage, depending upon the growing area. During September, prices for russet table potatoes collapsed from extremely high levels posted during August. But by Oct. 1, grower returns were still 20 percent to 65 percent above where they were at the same time in 2016. Furthermore, supply conditions are such that prices should move up from harvest lows, whereas it took until the beginning of March for 2016-crop russet prices to reach their lows. At press time, the final size of the 2017 fall potato crop is still uncertain. However, it is clear that this year’s crop will be the smallest since at least 2013. It has the potential to be the smallest crop since 2010. Preliminary information points to the shortfall being concentrated in russet potatoes, both in the fresh and processing sectors. The drop in russet production is likely to be much more pronounced than the overall decline in the potato crop. Preliminary data show a 16,000-acre decline in this year’s fall potato area to 907,800 acres. That includes a 15,000-

acre reduction in Idaho. While acreage shifted between other growing areas, the net decline reported for the remainder of the country was only 1,000 acres. The data show that 91 percent of Idaho’s planted area was russet varieties this year. That is down from 92 percent for the 2016 crop, suggesting that the russet acreage cut was even greater than the state’s overall acreage decline. Nationwide, russet acreage fell to 70 percent of the area planted to fall potatoes from 71 percent in 2016. It appears that the shift moved in favor of chip potatoes. White potatoes (combined round and long) increased to 20 percent of acreage from 19 percent for the 2016 crop. Shares for both red and yellow potatoes remained constant this year at 7 percent and 3 percent, respectively.

Weather Factors

Reduced acreage is only the first factor that has eroded russet potato production. Crops went in the ground much later this year than they did in 2016 across most of the U.S., particularly in the Pacific Northwest. Furthermore, soil temperatures were much cooler when the potatoes were planted than they were last year. That combination got crops off to a slow start. In the Pacific Northwest, a combination of summer heat and smoky skies appears to have limited bulking for much of the potato crop. While other growing seasons have been hotter than

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Potato Country

November 2017

this year, the heat persisted much longer than usual this summer, stretching through July and August and into the first half of September. Interestingly, though the hot weather has suppressed yields in the Columbia Basin, industry sources indicate that solids are above average and quality is excellent, which is much different than historical patterns. We are receiving reports of quality issues with the Idaho crop, but they do not appear to be as severe as has been the case with previous heat events. Processors are optimistic that good recovery rates will offset at least some of the production shortfall in the Pacific Northwest. In Wisconsin, the challenge has been excessively wet weather throughout the summer. That was followed by a period of hot, dry weather during September, which has slowed harvest progress. Further east, dry weather took the top off yields for Maine’s potato crop. Between wet weather in Idaho and Colorado, and heat delays in parts of the Midwest and East, harvest progress has been slower than usual this year. That is putting some potatoes at risk of frost damage. Some potatoes also may have been put in storage at temperatures that were above optimal levels. Both issues could lead to additional problems for the 2017 crop after it is under cover.

Market Outlook

The market for the 2016 russet crop ended on a strong note, as prices advanced to their highest levels since February 2014. Growers were able to extend the price advance throughout the month of August. The seasonal price collapse that normally occurs with the start of the new-crop harvest was delayed until after Labor Day. However, producers from several growing areas began clogging the pipeline with excess supplies beginning the last week of August. Following Labor Day, prices for russet count cartons were in free fall. Idaho 70-count cartons fell

Market from an August high of $21 per carton to $9 per carton by the end of September. Price declines in other growing areas were similar. Will the price decline continue? That depends to a large degree upon grower resolve. If growers will recognize the current supply situation and act accordingly, prices should stabilize near current levels and move higher. Based on the crop outlook as of Oct. 1, russet table potato supplies for the 2017-2018 marketing season could fall 5 percent to 8 percent short of year-earlier levels. Cuts of that magnitude should support crop-year average prices at least 30 percent above current (early-October) levels. Raw-product supplies also will be tight for processors. They already are making purchases where they can persuade owners to sell potatoes at contract prices. They will attempt to limit purchases at above-contract prices by pushing for an early and aggressive start to the 20182019 processing season and by reducing finished-product inventories to pipeline minimums. If open-market prices become extremely high, fryers may choose to put some customers on allocation rather than continuing to bid against the fresh market for the available supplies. Supplies of other potato types should be more plentiful than russet supplies. The Red River Valley potato crop has rebounded from the 2016 crop failure, boosting supplies of red potatoes. Growers have continued to expand yellow potato production. Storage supplies of chip potatoes appear to be much more plentiful than they were a year ago. If russet prices behave as expected, they are likely to support strong prices for both red and yellow potatoes, though possibly not at as strong of levels as they were for the 2016 crop. The main impact of increased chip potato supplies is likely to be a cut in earlyseason contract volumes in Florida and Texas. Buyers also may be more selective on quality than they were for the 2016 crop.

By Bruce Huffaker, Publisher North American Potato Market News

HUFFAKER'S HIGHLIGHTS • Russet table potato supplies could fall 5 percent to 8 percent short of 2016-2017 movement. • Based on early-October conditions, prices for russet table potatoes for the 2017 crop should average more than 30 percent above current levels.



• Supplies of processing russets also are tight this year. o Fryers have been buying open-market potatoes when they can get them for contract price. o Processors will deplete finished-product inventories and jumpstart the 2018 harvest in order to limit the need for open-market purchases. o If raw-product prices get out of hand, some customers may be placed on allocation. • Supplies of red and yellow potatoes are likely to be more plentiful than they were last year. o A strong market for russet potatoes should limit any price downside for red and yellow potatoes. • Chip potato companies will be able to rely on storage supplies for longer than they did last year. 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].

PotatoCountry.com

29

Potato Growers of Washington

French Fry Industry Remains Very Profitable By Dale Lathim, Potato Growers of Washington

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ecently I was in New York City meeting with representatives of the major investment organizations. We were discussing the outlook of the French fry market and the potato industry that supplies it. Since ConAgra Foods completed the spin-off of Lamb Weston into a standalone stock, the subsequent SEC filings and mandatory financial disclosures have shined the spotlight on not only theses companies, but our entire industry. Many of the potential investors that I have met with have done some of the most detailed analysis of our industry that I have ever seen. The results of this analysis support my belief that our industry is headed in the right direction and should enjoy continued growth and amazing profitability for the next decade.

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A key indicator to me is that the world demand for frozen potato products continues to grow at a remarkable pace. So much so that North American processors are running most of their plants at, or in some cases more than, what was believed to be the capacity of the plant and we are still losing our share of the world market, which is growing faster than we can add new capacity. That global growth should continue as McDonald’s China has announced that it plans to open 2,000 new outlets over the next five years. That is more than one new store every day for the next five years! Domestically, we are also seeing more restaurants adding frozen potato products to their menu, with Taco Bell now serving them in its more than 1,000 U.S. stores. Also consider the continued popularity and expansion of all-day breakfast options, which has greatly exceeded anyone’s estimates for the demand of cut and formed potato products. With all this in mind,

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www.coloradocertifiedpotatogrowers.com

30

Potato Country

November 2017

it is very easy to see that the announced additional expansions of processing plants in the Pacific Northwest are needed just to try and keep pace with the growing demand. With any product, tight supply constraints like those that exist today in the frozen potato processing industry lead to higher prices. In other talks that I have had with restaurant buying teams, they report that they are being asked to pay as much as 20 percent more for frozen potato products this year. Regardless of whether they are being asked to pay 1 percent more this year or 20 percent more, each chain is saying the ask is bigger than it has ever been, and there is very little, if any, room for negotiating on that price. One of the investment analysts that I met with in New York had done some excellent math trying to determine where the money from an order of French fries ultimately ends up. He priced a large order of fries at one of the major QSR chains in his area, and it computed to $5.10 per pound of fries. Using very conservative recovery rates and median pricing, he calculated that the restaurant captured $4.45 per pound, the processor $0.50 per pound, and the grower received the remaining $0.15 per pound. What this indicates to me is that the industry is very profitable, especially at the top rungs of our supply chain and that there is plenty of profit to be shared so that each level can and should be getting more profitable each year. When I met years ago with a very major QSR chain and asked for help in getting additional money passed along to growers, the response was very clear and concise. It was not up to the restaurant to be responsible for the profit levels of anyone below it on the supply chain, it was up to each level to step up and get what it needs. Obviously, the processors have done that as Lamb Weston’s now public financial reports show amazing profitability. We at PGW have been making it our number one priority this year to restore your profitability to sustainable levels. As I have stated many times before, we can only do that with your support. Please make the effort to attend our harvest wrap-up meetings and support the actions that your board of directors believes will help us the most with not only this year’s negotiations but future negotiations, as well.

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