Idaho potatoes face challenging season of low supplies and high prices

Idaho potato supplies are light and prices higher, and the market isn’t expected to improve this season.

Ryan Wahlen, sales manager of Pleasant Valley Potato, Inc. BB #:129785 Aberdeen, ID, said growers in the state planted about 15,000 fewer acres than last season, since it was often oversupplied, which is the fourth fewest acres planted in the past 70 years.

While growers expected lighter volume, they didn’t expect lower yields also. He said last year, growers produced about 440 sacks per acre, and this year it produced 315-325 sacks per acre.

“No one anticipated that yield loss,” Wahlen said. “Usually, we will have better quality with a smaller crop, but this one lacks size. It will keep getting worse over time because they lose some weight in storage.”

Growers finished harvest in early October, so what they have now is all they will have until next summer.

Josh Wolff, partner and vice president of The Ruby Company BB #:102013 in Chicago, IL, said the company is going to have to source potatoes from other growing regions much more than in previous years.

“This is a challenging crop that is just getting started,” he said.

Wolff said the smaller sizing will hit foodservice harder than retail, as foodservice usually buys 40-60 count and may have to shift to 70-90 counts, and they are all in much smaller numbers than last year.

Russet f.o.b. prices for Idaho potatoes are more than twice what they were this time last year. According to the USDA, in early November, Idaho russet cartons averaged $15.88, up 107 percent from $7.68 the same time last year.

“I think the market will continue to climb,” Wolff said. “Usually, prices will drop in October after harvest finishes but not this year. We’ll likely have a higher market all through summer.”

Wahlen also expects a higher market all season. He said 40 count cartons are about $25 right now compared to $7 per carton this time last year. Prices for 90-100s are about double what they were last year.

“Prices will be higher all season for buyers,” he said. “But returns are still not great for growers because of the yield problems. I think prices will go higher during the year.”

He said Idaho reports show potato shipments were down 14.5 percent in October from last year.

Wahlen said Idaho potato growers planted fewer acres this year because so many of them lost money last year. “Growers lost millions last year,” he said. “The cost versus return may have been the worst I’ve ever seen.”

However, he said other regions such as the San Luis Valley (CO), Nebraska, Wisconsin, Michigan, and Washington have larger supplies than last year, so that will help a little.

Overall, USDA reports national volume is up 7 percent, but Idaho is down 16 percent. And Idaho is heavier in russets than other areas.