Potato harvest is well underway in Wisconsin. To date, Alsum Farms & Produce has finished approximately 25 percent of its potato harvest.
“The cool, dry temperatures will help make great gains this week with putting away potatoes in storage bins to provide a year-round supply of Wisconsin Healthy Grown® russets potatoes,” says Christine Lindner, marketing manager. “We are on target to finish harvest by mid-October. We also have a good supply of Wisconsin red and gold potatoes for the fresh market.”
For Alsum, its russet, red and gold potato supply is yielding higher than last year, though the timing of the season was a few days behind its normal August start. “We had a cool spring delaying planting by a few weeks but the summer growing season was nearly ideal for potatoes,” says Lindner. While Alsum’s primary growing region is Wisconsin the shipper also markets other Midwestern-grown partner farms potatoes.
As for demand, that is shifting. “Potatoes being a mature produce category is finding resurgence as a pantry staple by consumers driven by the pandemic,” says Lindner. “Gold and petite size potatoes, which offer consumers the convenience of not having to peel them, continue to grow in consumer demand. Petite-size potatoes and varieties continue to grow exponentially in demand. The specialty potato category, while small, continues to grow.”
Higher potato pricing
Meanwhile, potato pricing is stronger over last year while potato volume at retail has softened from the pandemic, it is above 2019 levels. “Logistics and supply chain challenges propelled by the escalating costs of business from growing the crop to rises in packaging for corrugated bins, pallets, labor to pack and fuel for freight deliveries are all putting upward pressure on the market,” adds Lindner.
She notes that Potatoes USA reports that potato retail sales have increased in dollar sales but decreased in volume sales from July 2021 – June 2022, compared to the same time frame a year ago. As consumer prices have increased by 10.5 percent, retail dollar sales increased by 5.7 percent. The total volume sales decreased 4.4 percent from the same time a year ago, but they remained above volume sales prior to the pandemic while dollar sales have continuously increased over the last five years.
The organization also notes that fresh potato sales increased by 3 percent in dollars but fell by 5.6 percent in volume. The price per pound for fresh potatoes increased by 9.1 percent, but the average cost is still under $1. Most fresh potato types increased in dollar sales but declined in volume sales, except for yellow potatoes which have increased by 12 percent in dollars and by 4.6 percent in volume sales.
However, russet potatoes remain the top volume share among fresh potato types at 59 percent. Fresh potato sales account for 23 percent of retail store sales and 28 percent of the volume sold.
Potato pack trends
With an eye on what consumers are being drawn to, Lindner also points to recent data from IRI Unify Retail Sales from July 1, 2017-June 30, 2022 that reports that when looking at fresh package types, micro/steamer and tray potatoes are the only two categories that increased in dollar and volume sales. Micro/steamer potatoes increased by 4.5 percent in dollars and by 2.6 percent in volume while tray potatoes increased by 8.4 percent in dollars and by 1 percent in volume sales. The only category to increase in dollar and volume sales for pack sizes was one to under two pounds, which grew by 9.2 percent in dollars and 2.4 percent in volume. Pantry staples of 5# and 10# bag of russets remain the top one and two pack sizes purchased in volume sales at retail by consumers as budget-friendly options.
Looking ahead of course is the upcoming holiday season which sees families getting together and in turn, helps drive potato sales at retail. “We are gearing up for packing holiday potato volume for our customers. The holiday demand nearly triples the number of potato loads washed to fulfill ads and accommodate for Thanksgiving which is the peak of fresh market demand for potatoes,” Lindner says, noting it is packing russet, red, gold and creamer potatoes for holiday ads.
Currently, Alsum is promoting ad volume for reds on both A and B-size red and B-size gold potatoes.
For more information
Christine Lindner
Alsum Farms & Produce
Tel: +1 (920) 348-6774
Christine.Lindner@alsum.com
www.alsum.com