Potato Country May/June 2018

PotatoCountry.com • May / June 2018 Western focus. National impact.

Finding What

Works

Harvest Essentials Growing Pains for Fry Market Potatoes USA Annual Meeting

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PotatoCountry.com

4

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

Vol. 34 No. 4

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

Country Western focus. National impact.

Table of Contents

May/June 2018 6

Dave Alexander ...........................dave@ColumbiaMediaGroup.com Publisher, Advertising

Denise Keller ..............................editor@ColumbiaMediaGroup.com Editor

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

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

Finding What Works

Bruce Huffaker ................................................. napmn@napmn.com

Matthews Land and Cattle LLC

Market Report

10 Potatoes USA Reports Progress, Plans Potatoes USA Annual Meeting

Dale Lathim ............................................................... dale@pgw.net

Potato Growers of Washington

Brian Feist ...................................brian@ColumbiaMediaGroup.com Operations Manager, Advertising

16 Harvest Essentials

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: editor@ColumbiaMediaGroup.com.

Buyers' Guide

18 Potato DC Fly-In Attracts

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 dave@PotatoCountry.com.

Strong Attendance, Speakers

24 PAA Previews Plans for Boise Meeting Potato Association of America Annual Meeting

26

contacts

Potatoes. Real Food. Real Performance.

Potatoes USA

30 The Only Constant in the Potato Industry is Change Potato Growers of Washington

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 brian@ColumbiaMediaGroup.com 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.

Editorial Board

Bill Brewer

chris Voigt

Potatoes USA annual meeting attendees catch up and network between sessions. See story on page 10.

Idaho potato grower Blake Matthews says a change in the farm’s chemical regime has helped reduce fertilizer, fumigant and fungicide inputs, and eliminate the use of insecticides.

See the story on page 6.

Potato Country

Executive Director

Washington State Potato Commission

Oregon Potato Commission

(509) 765-8845

(503) 239-4763

Departments

On The Cover

4

Executive Director

May / June 2018

14 15 20 21 25 28

Insect Quiz Disease Quiz New Products In the News Calendar Market Report

Nina Zidack

Frank Muir

Jim Ehrlich

Montana Seed Potato Certification

Idaho Potato Commission

Colorado Potato Administrative Committee

Director

(406) 994-3150

President/CEO

(208) 334-2350

President/CEO

(719) 852-3322

LOOPERS, PSYLLID, THRIPS

IN ONE LAP

Only Blackhawk® insect control stops worms, potato psyllid, thrips and Colorado potato beetle. Blackhawk controls target pests through contact and ingestion activity, which provides quick kill and residual. Applications of Blackhawk will not flare mites or lead to secondary pest outbreaks.

And, as a member of the spinosyn class of chemistry (IRAC Group 5), Blackhawk controls pests like no other class of chemistry in potatoes.

Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow Blackhawk is not registered for sale or use in all states. Contact your state pesticide regulatory agency to determine if a product is registered for sale or use in your sate.

Always read and follow label directions. www.dowagro.com

®

Finding What

D

uring the last five years, Blake Matthews has made a 180-degree change on his Oakley, Idaho farm.

By taking a chance on some little-known products and systematically fine-tuning the farm’s chemical regime, the grower has managed to reduce fertilizer, fumigant and fungicide inputs, as well as eliminate the use of insecticides. And all the while, he’s using social media to share the ongoing efforts and results with friends, family and fellow farmers.

Works Story by Denise Keller, Editor Photos by Dave Alexander, Publisher

Blake Matthews and his dad, Eugene, farm 450 acres of potatoes in Oakley, Idaho.

Program on the Fringe

Matthews and his father farm 2,700 acres including 450 acres of potatoes, about 70 percent of which are grown for the processing market. About half of the spuds are Western Russet, 30 percent Russet Burbank and 20 percent Russet Norkotah. Production also includes 350 acres of sugar beets, 1,200 acres of malt barley, 400 acres of corn and 300 acres of alfalfa. The family also raises cattle and operates a feedlot, which is managed by Matthews’ two brothers.

About five years ago, Matthews, along with agronomist Jared Cook, began testing some biological products, mostly from a company called Bio S.I. Technology, as well as fertility products from an Idaho-based company called Redox.

Tests included seed treatments, in-furrow applications, insecticide and fungicide replacements, and fumigation alternatives.

Matthews and Cook eventually adopted a standard in-furrow treatment consisting of Mainstay Calcium, Rootex, Bio S.I., Root Rx and TriPlex Micro, along with Quadris and Admire. In ongoing trials, they tested 10 treatments last year, each varying in the combination of products, rates and timing. Matthews brought in Jeff Miller, president of Miller Research, to provide an objective third-party evaluation of the trial.

“Five years ago, we weren’t using any of these products. It’s been a work in progress, but we think we have a fairly decent program put together now,” Matthews says. “Ultimately, what it comes down to is we are trying to manage plant stress.”

It seems to be working. In the last two years, Matthews has been able to eliminate the use of foliar insecticides on potatoes and sugar beets. He attributes this to the

Blake Matthews digs up some Western Russets in late August.

use of Mainstay Si, a calcium silicon product from Redox. A side effect of the fertilizer is a toughening of the plant’s leaves that makes it difficult for insects to feed on them, according to the grower.

He has also been able to do away with in-season fungicides, limiting applications to an in-furrow treatment and another at vine-kill.

Overall fertilizer inputs have been reduced, as well. While Matthews increased potassium because he had been short on the nutrient, he has dropped phosphate use by 85 percent and cut back on nitrogen by 25 to 30 percent through the use of high-efficiency products and the utilization of the Ask the Plant testing program from TPS Lab. “Everybody claims they have a highefficiency product, but we’ve actually found one that works,” Matthews says.

In addition, he has found that he can forgo fumigation. In two years of testing, potato yields were the same in fumigated ground and non-fumigated ground, but tuber quality was better in the nonfumigated plot. Thus, last fall, Matthews fumigated with Vapam only 25 percent of this year’s potato ground.

With lower input costs and higher yields, Matthews is happy with the program he and Cook have developed, but understands why it hasn’t become standard in the industry.

“It’s a little on the fringe,” the grower admits with a laugh. “Like my dad always said, everybody has a snake oil.

Everybody’s tried it, and most of them don’t work. So everybody has a bad taste in their mouths for a lot of these new products, especially if they’re not from your main manufacturers.”

Matthews and his team tested the first new product in potatoes after seeing great results in his sugar beet crop, and gradually added more.

“If a grower is not at least trialing one thing on their farm every year, they’re stagnant,” Matthews says. “Growers have to be not afraid to try something new. You don’t have to go whole hog, but do a good honest trial to see whether it works on your farm or not.”

The grower plans to repeat the trial this year and will continue refining the farm’s program.

Following on Facebook

Social media has given Matthews a platform to share the changes made on his farm. He often posts videos about his in-field trials on Facebook.

“I enjoy sharing what I’ve learned because I’ve had people who have helped me throughout the years. Somebody did it for me, so I need to turn around and do it for somebody else. Pay it forward,” he explains.

Facebook also serves as a venue for educating his non-farming friends about potatoes and agriculture, in general. Many people have misconceptions about farmers, he says. Even people one generation removed from the farm can be unfamiliar with the realities of the industry.

“I think, in a generalized statement, farmers are terrible at PR,” the grower says. “We have our little groups we chat with and bounce ideas off, but as for showing the world, most farmers don’t promote the industry. The problem is if we don’t speak up for ourselves, then everybody is going to automatically think the worst of us.”

Videos showing what it takes to harvest a crop have attracted a lot of interest on

Matthews’ Facebook page. Other posts are intended to help provide information about hot topics such as GMOs. “We’re putting it out there for mainstream America to see that we’re out there trying to make the ground better, do a better job, and keep the food source reliable, clean and safe,” Matthews explains. “People love a good story; tell your story.”

When it comes to knowing the best way to leverage the power of social media to tell his story, Matthews has been “winging it.” His videos are unscripted, and he doesn’t do retakes. But in the world of social media, honesty and transparency work best.

“If there’s one person that will at least look at it and listen and maybe tweak their point of view just a little bit, then it was a success,” he concludes.

Blake Matthews routinely tests new products on his farm and shares results on Facebook.

ADVERTORIAL

ROOT HEALTH IN POTATOES

Why It Pays to Focus on Root Health A plant’s root system is not only responsible for water and nutrient uptake, it is especially critical for crops like potatoes, where healthy roots support tuber development which determine both production yield and quality.

“Good root health is vital when plants are in good condition and even more important when plants are facing stress from weather, pests or disease,” said Dr. Mike Thornton, Extension Plant Physiologist and Professor at the University of Idaho.

Soil Pests At least 18 species of nematodes are known to cause yield and quality issues in the U.S. Yield losses due to nematode infestation vary depending on potato cultivar and level of infestation, but research has shown that yield loss can range from 19 to 90 percent, according to a USDA APHIS publication.1 “Growers need to be vigilant and prepared for nematodes every season,” says Kelly Luff, Senior Technical Representative for Bayer.

Soil Diseases Several of the pathogens that cause the most damage in U.S. potato production originate from soilborne inoculum such as Rhizoctonia, leading to diseases that can affect both crop development and tuber quality.2

Comprehensive Approach A comprehensive approach to root health includes both management practices and product solutions. Bayer has introduced a full range of solutions that allows potato growers to get their crops off to a strong start leading to successful harvests. The comprehensive program also provides sustainability and crop management benefits, requiring fewer applications and lower dose rates.

Research has shown that nematode

yield loss can range from 19 to 90 percent.

A strong root system is the foundation of potato plant health and tuber development, leading to higher quality and higher yields for potato growers.

Start with the Seed Potato growers can build the best foundation for their crops by treating seed pieces with Emesto® Silver. Emesto Silver provides good activity on seedborne Rhizoctonia and Fusarium (including resistant strains) and Silver scurf.

Protect Against Soilborne Diseases Serenade® ASO fungicide can be foliar or soil-applied to provide disease control against foliar and rhizospheric bacterial and fungal diseases.

Serenade ASO also plays a key role as a root health activator and can change the interaction between the soil and the plant, leading to healthier roots and improved, vigorous tubers.

In-season Nematode Management An innovative combination from Bayer, the V+M Solution provides a cost-effective, convenient solution for managing a broad spectrum of insect and nematode species and several diseases. The V+M Solution combines the wide-spectrum nematicidal activity of Velum® Prime with the sustained in-season nematode and insect protection of Movento.®

Summary Combining effective management practices from seed treatment through harvest with a comprehensive package of fungicides, nematicides and insecticides from Bayer can give potato growers confidence in their crops’ root systems producing healthy plants and generating higher yields.

Learn more at: www.CropScience.Bayer.us

Significant Protection Against Nematodes and Diseases

Untreated

Velum® Prime + Serenade® ASO

Dr. Saad Hafez, University of Idaho.

USDA Animal and Plant Health Inspection Service, Golden Nematode Program Update, Daniel Kepich.

Management of soilborne diseases of potato. N.C. Gudmestad, R.J. Taylor and J.S. Pasche, Department of Plant Pathology, North Dakota State University.

1 2

IMPORTANT: This bulletin is not intended to provide adequate information for use of these products. Read the label before using these products. Observe all label directions and precautions while using these products. © 2018 Bayer CropScience LP, 2 TW Alexander Drive, Research Triangle Park, NC 27709. Always read and follow label instructions. Bayer, the Bayer Cross, Emesto, Movento, Serenade, and Velum are registered trademarks of Bayer. Not all products are registered for use in all states. For additional product information, call toll-free 1-866-99-BAYER (1-866-992-2937) or visit our website at www.CropScience.Bayer.us. CR0218MULTIPB247S00R0

PROTECTED

THAT’S HOW POTATOES FEEL WITH MOVENTO.® Movento® is a foliar-applied insecticide with two-way movement throughout the plant that effectively suppresses nematodes, while also protecting against above-ground pests including aphids, psyllids and mites. With Movento as part of your season-long pest management program, you’ll have stronger, healthier plants for increased potato quality and yield.

For more information, contact your retailer or Bayer representative or visit www.Movento.us. © 2018 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.

Potatoes USA Reports Progress, Plans W

ith the U.S. potato industry experiencing record exports and an uptick in consumer demand at home, Potatoes USA leaders say it’s a good time to be part of the industry growing, selling and shipping spuds. During the Potatoes USA Annual Meeting, held March 12-15 in Denver, leaders shared recaps of the organization’s successes and announcements of its plans and priorities for the year ahead.

ideas that resulted in a 13 percent increase in potato offerings at K-12 schools and a 0.5 percent increase in the total volume of potatoes sold at foodservice. The penetration of potatoes on foodservice menus is the highest it’s been in 10 years.

Potatoes also accounted for 7.2 percent of new product launches last year, the highest level in five years.

In addition, recipe searches on www. potatogoodness.com are at an all-time high, and the total volume of potatoes sold at retail was up 0.1 percent from July through December 2017.

Domestic Marketing

The domestic marketing committee highlighted the strong demand and volume sales for potatoes, reporting that potatoes are the number one vegetable sold at retail and the top side dish served at foodservice.

The committee is working to increase consumption by showcasing unexpected, yet delicious potato dishes to consumers, retailers, nutrition and foodservice professionals and food manufacturers through engaging marketing programs. In 2017, Potatoes USA promoted new menu

International Marketing

Amy Burdett, Potatoes USA director of marketing operations, gives an update on market access.

Export figures for 2017 and the first half of the current marketing year (JulyDecember) are also up. Exports of dehydrated potatoes jumped 27 percent, fresh increased 14 percent, seed gained 5 percent, and frozen inched up 1 percent.

While export demand remains strong, current trade and supply issues need to be kept in mind as this could impact

Potatoes USA’s 2018-19 Executive Committee includes: (back row from left to right) Heidi Randall, Chris Hansen, Eric Schroeder, Jaren Raybould, Steve Streich, Blair Richardson, Marty Meyers, (front row from left to right) John Halverson, Jason Davenport, Dan Moss, Sheldon Rockey and Phil Hickman.

10

Potato Country

May / June 2018

HEALTHY

FROM FIRST SPROUT TO FINAL HARVEST

From sprout to harvest, Luna® fungicide protects potatoes throughout the growing season, improving plant health for beautiful crops and abundant potato yields. As a breakthrough systemic fungicide, Luna provides unparalleled control of White mold, Early blight and other problematic diseases. Make Luna a cornerstone of your fungicide program to consistently produce a high-quality crop – and more of it.

Find out what Luna can do for you at LunaFungicides.com/potato. © 2018 Bayer CropScience LP, 2 TW Alexander Drive, Research Triangle Park, NC 27709. Always read and follow label instructions. Bayer, the Bayer Cross, and Luna are registered trademarks of Bayer. Luna is not registered in all states. For additional product information, call toll-free 1-866-99-BAYER (1-866-992-2937) or visit our website at www.CropScience.Bayer.us.

future demand, according to Potatoes USA. Factors include NAFTA and KORUS renegotiations, Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP), Japan-EU trade agreement, other trade agreements, possible retaliatory tariffs, EU supply and U.S. supply.

Greater access to international markets continues to be a key driver in developing global demand. Potatoes USA reports progress in reducing trade barriers in China, Guatemala, Indonesia, Japan, Korea, Mexico, Morocco and Myanmar.

Potatoes USA is looking at Saudi Arabia and the United Arab Emirates as possible new markets for expansion. The organization also concluded that Japan continues to provide strong opportunity for the U.S. despite shifting demographics and pending trade agreements. Potatoes USA identified several tactical elements to strengthen demand including efforts to garner fresh market access.

Research

Potatoes USA also shared success stories from each of its research programs.

The Potato Research Advisory Committee helped generate industry support for several proposals that were successfully funded last year. The U.S. Department of Agriculture (USDA) awarded the U.S. potato industry $2.7 million in research funding for bacterial soft rots caused by Dickeya and Pectobacterium. Another $50,000 came from a USDA Specialty Crop Research Initiative Planning Grant and will be used to study remote sensing in potatoes.

The Alliance for Potato Research and

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Potato Country

May / June 2018

one-size-fits-all approach. The new approach allows the NFPT to operate more efficiently and economically based on the observed viability of a clone developed for processing. Clones are now limited to three years in the program, whereas before there was no time limit. The number of clones accepted into the program will decrease in 2018, but the accepted clones are higher quality.

Food Trucks

John Toaspern, Potatoes USA chief marketing officer, provides an overview of the organization’s marketing programs.

Education (APRE) added 11 new studies to the APRE research pipeline. There are now 14 studies underway, which are expected to be published beginning later this year.

The latest numbers out of the National Chip Program show that certified seed acres of varieties developed in the program account for 20 percent of all chipping potato certified seed acres in the U.S. The program’s most successful varieties in terms of certified seed acres are Lamoka, Waneta, Manistee, Hodag and Sebec.

The National Fry Processors Trial (NFPT) completed its first year as a tiered program in 2017, replacing the previous

Potatoes USA CEO Blair Richardson gave an update on the Spud Nation food trucks, which have been in operation since 2016. Due to the difficulty in finding and retaining appropriately qualified staff for the food trucks, Richardson recommended that Potatoes USA continue to operate one food truck through the end of the fiscal year (June 30, 2018) and then cease operations for fiscal year 2019. Potatoes USA will look into other opportunities for the food trucks that could include transitioning them to an owner/operator option or finding highly qualified chefs to take over running them without assuming ownership.

Dan Moss (left) shares some remarks about serving as Potatoes USA board chairman for the coming year, as Potatoes USA CEO Blair Richardson (right) listens.

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| evann@tristeelmfg.com PotatoCountry.com

13

Insect Biology Quiz Dr. Andy Jensen This material is provided courtesy of Andy Jensen, Ph.D., Manager of the Northwest Potato Research Consortium.

For more information, visit www.nwpotatoresearch.com.

A

Some of the insects and related arthropods that are beneficial predators in your crops are evident and easily seen before, during and after planting and before canopy development.

Four common ones are pictured here.

Can you identify them and name an important fact or two about each?

B

ANSWERS, PAGE 30

C

D

For a FREE CertiďŹ cation Directory, email Dr. Nina Zidack at potatocert@montana.edu

Uncompromising Standards, Generation after Generation. We have the seed for you! www.montanaspud.org

14

Potato Country 167820MonPot13h.indd 1

May / June 2018 9/18/17 11:45 AM

Know Your Potato Diseases

Disease Identification Quiz 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; jeff@millerresearch.com

A

Dr. Jeff Miller

B

C D As plants are emerging in the northern potato production areas, there are a number of problems which can be found prior to row closure. Can you identify the disease and causal agent shown in these photos? What can be done about these problems once they are found?

1. The plant in Photo A looked normal above ground. But when you pulled it, you could see dark brown lesions on the stems. A few lesions were on the stolons also.

2. The plant in Photo B was stunted. When you pulled it up to look at the roots, you saw the lower stems were black and slimy.

3. Another stunted plant is shown in Photo C. When you pulled it, the roots looked just fine. But you did notice leaf lesions on the lower leaves as shown in Photo D. It is earlier than expected for early blight. The variety is Ranger Russet.

ANSWERS, PAGE 22 PotatoCountry.com

15

Harvest WCCO Belting

www.wccobelt.com conveyor Belt

Those in the root vegetable business understand that having to stop trucks from offloading product due to a malfunctioning conveyor system is wasted time and money. That’s why WCCO Belting designed a conveyor belt with cross-rigid technology for effectively piling and storing harvested goods. WCCO’s crossrigid belt not only has the necessary strength and longitudinal flexibility, but also increased rigidity in the transverse direction to prevent belt tracking issues and splice failures that occur during side-loading.

Greentronics

www.greentronics.com RiteTrace

The enhanced RiteTrace identifies and tracks each load from point of harvest to place of storage. Recent enhancements have been added for growers who use crop carts and trans-loading in their operations.

Field and 3D bin (cellar) maps display crop data by field, bin, load, yield, truck, variety and even by temperature with optional sensors on the harvester. Bin maps link stored crop back to place of harvest for agronomic management. Reports and summaries provide an excellent overview of the harvest process.

RiteTrace provides traceability records for GAP documentation.

Linked maps help communicate about product quality and farm practices with buyers and consumers.

RiteTrace builds on Greentronics’ RiteYield yield monitor. Both systems are available to run on displays from John Deere and Trimble, allowing users to view details in real time.

Spudnik Equipment Company www.spudnik.com

1872 Even Flow Bin

The new 600 cwt 1872 Even Flow Bin was designed with a 60-inch-wide high-capacity elevator and a wider 72-inch bottom belt. The machine is able to handle a higher product flow and is a perfect match for wide, high-capacity eliminators because of its ability to distribute product evenly over the whole width of the elevator. This reduces the number of potato layers, helping the eliminator clean and size better.

The Even Flow also has an adjustable discharge gate that enables the operator to control the handling effect of the machine. Close the gate to obtain an even discharge flow and break up soft clods; open the gate and the whole pile moves forward, reducing the effects of skinning and bruising. In addition, operation is simplified by the display of all belt speeds in feet per minute, allowing easy and precise adjustment.

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Potato Country

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Essentials Tri-Steel Manufacturing Company www.tristeelmfg.com

logan Trac-Pro 100 Telescopic conveyor

Logan Trac-Pro 100 is the latest model of Logan telescopic conveyors. Built by Logan Farm Equipment, the design features maximum conveyor use end to end and side to side. The conveyor is structurally sound to handle the heaviest loads at full capacity for weight and speed. It is gentle but strong, efficient, user friendly and easy to move at higher speeds from location to location.

Standard features include taller and stronger formed sides, large diameter transport wheels, inline gearboxes, heavy-duty bearings, drive pulleys, and steerable tow axle. The center axle is height adjustable to add support when the conveyor is extended, and it flips up out of the way for transport. Options include variable-frequency drives with auto speed sensors, radio remote interlock, hydraulic drive and steering, and electrical cord reels.

Milestone

www.milestone-equipment.com Sizers, Eliminators

Milestone specializes in custom-built equipment to suit its customers’ specific needs.

Milestone sizers/eliminators incorporate several innovations and patents. Numerous models, configurations and options are available for potato sizing and debris elimination.

Mayo Manufacturing www.mayomfg.com

Mayo Evenflow

The Mayo Evenflow will handle a large volume of potatoes for growers’ harvest needs. For storage or off-the-field shipping, the proximity sensors will keep transitions close to avoid bruising. The wide intake and discharge belts provide high capacity handling.

The Mayo Evenflow is available in 600 cwt. and 1,000 cwt capacities or custom built to other sizes.

The cleated intake belt reduces rollback. Options include mounted stingers.

PotatoCountry.com

17

National Potato Council

Potato DC Fly-In Attracts Strong Attendance, Speakers

By John Keeling, NPC Vice President and CEO

E

lectronic logging devices (ELDs), immigration reform, trade agreements, the farm bill, pollinator health, regulatory reform at the Environmental Protection Agency (EPA) and funding for potato research programs are hot button issues in the potato world. All these legislative topics and more were on the table during the National Potato Council’s (NPC) 2018 Potato D.C. Fly-In. More than 125 potato growers, friends of the potato industry and the 20 members of the Potato Industry Leadership Institute class came to Washington D.C. to advocate for the nation’s potato industry at the end of February. Compressed into three and a half days, the hours were long and activities non-stop, from sunrise to long into the Washington D.C. nights.

Fly-In attendees heard the latest updates from legislators, journalists, diplomats and federal agency officials on the key issues impacting agricultural policies in general and the U.S. potato industry specifically.

The event began with a presentation on agriculture immigration reform by Chuck Conner with the National Council of Farmer Cooperatives and a presentation on regulatory reform by Jeff Sands with the EPA. Ambassador Arturo Sarukhan, former Mexican ambassador to the United Rep. Mike Conaway, chairman of the House Committee on Agriculture, speaks about the farm bill reauthorization process.

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Potato Country

May / June 2018

The Washington state delegation meets with Rep. Cathy McMorris Rodgers (right front).

States, spoke on the tenuous relationship between the U.S. and Mexico. One of the observations Sarukhan made was that Mexico is the home to the largest U.S. expatriate community in the world.

He noted that through NAFTA, Mexico, Canada and the U.S. are exporting North American goods through joint supply chains and platforms, and their economies are more intertwined and integrated since NAFTA and 9/11.

“Mexico buys more U.S. exports than China and Japan combined or all of Latin America and Central America,” Sarukahan stated. “Mexico is the number one trade partner in 25 states.”

Sarukhan said that changes to NAFTA would have come if the U.S. had stayed in the Trans-Pacific Partnership.

Day two saw a constant stream of speakers giving up-to-date analysis on current issues including the Endangered Species Act, ELD and trucking issues, Trump administration trade policies and prospects for the 2018 Farm Bill.

Randy Russell, with the Russell Group, interviewed DaNita Murray, chief counsel for the Senate Agriculture, Nutrition and Forestry Committee, on the process for writing the 2018 Farm Bill. Russell said that passage will be a challenge and will require bipartisan cooperation among ag producing states and the more urban states.

Probably the biggest stumbling block in the farm bill is the Supplemental Nutrition Assistance Program (SNAP), Russell said.

“The farm bill is really a nutrition bill,” Russell said. “SNAP represents 80 percent of the farm bill budget.”

Amy Walter, national editor of the Cook Political Report, spoke on the political outlook for 2018. Walter is a regular guest on a variety of political commentary broadcasts including Face the Nation, Washington Week, Fox News Sunday and Meet the Press. She spoke about the continued bad blood and lack of civility between Democrats and Republicans in Congress resulting in lack of any bi-partisan legislative accomplishments in the House or Senate.

Later, the event moved to the Congressional Auditorium of the U.S. Capitol Visitor Center to hear from Rep. Dan Newhouse, (R-WA); Senate Agriculture, Nutrition and Forestry Chairman Pat Roberts (R-KS); Rep. Mike Sen. Pat Roberts, chairman of the Senate Agriculture Committee, speaks about the value of international markets to the U.S. potato industry.

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Tracks from known locations in the field to precise layers and areas in storage Simpson (R-ID); Rep. Kurt Schrader (D-OR); House Agriculture Chairman Mike Conaway (R-TX); Sen. Angus King (I-ME); and Dan Glickman, former Secretary of Agriculture during the second term of the Clinton administration.

Following the speakers, the NPC held the annual “Standing Up for Potatoes” reception for senators, congressmen and their staff aides in the visitor center.

On the final full day, armed with position papers and talking points, state delegations and individuals went to Capitol Hill to spend the day walking the halls of the Senate and congressional office buildings and meeting with senators, representatives and staff aides to make the case for the domestic potato industry. The Fly-In concluded with visits to the EPA and the USDA. The 2019 Fly-In will be Feb. 25-28 at D.C.’s Capital Hilton.

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New Products

Company Prescribes Mud Rx for Planter Wheels

Two farmers from North Dakota utilized their engineering backgrounds to develop a product to eliminate mud-plugged planter and air seeder wheels in wet conditions and to prevent tire wear in abrasive soils.

Mud Rx is a plastic product that fits snugly between a gauge wheel and disc. This keeps the disc clean and prevents mud buildup and wheel plugging in damp or muddy conditions. In dry, abrasive soil conditions, the product is designed to keep small particles, rocks and debris from wearing down the tire edges close to the disc.

The developers estimate Mud Rx extends tire life by three to five times.

Mud Rx fits nearly all planters with gauge wheels and most aftermarket wheels and tires.

Visit www.mudrx.com.

UPI Unveils New Herbicide

UPI’s new Tripzin ZC herbicide provides pre-emergent control of a wide spectrum of broadleaf and annual grass weeds, including Palmer pigweed and other pigweed species, ragweed species, lambsquarters and velvetleaf. It is labeled for use in potatoes.

The pre-mix combines two active ingredients, metribuzin and pendimethalin, resulting in a viable resistance management tool, according to the company.

The water-based formulation is said to have a low volatile organic compounds (VOC) profile and convenient handling characteristics.

Visit www.upi-usa.com.

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Potato Country

May / June 2018

Lindsay Upgrades FieldNET App

Lindsay Corporation has launched a new version of its FieldNET mobile app.

The enhancements are designed to improve access, visibility and control of center pivots and lateral irrigation systems.

Key features and new, real-time functionalities now available include the ability to enable and disable auto-restart and auto-reverse, as well as the ability to shut down multiple pivots simultaneously. Upgrades also include new search tools for equipment and groups, display of time remaining for current circle or until the next stop, and streamlined status alerts delivered via push notification.

Lindsay plans to integrate variable rate irrigation into the FieldNET app later this year.

Visit www.myfieldnet.com.

AMVAC Markets New Nematicide

AMVAC Chemical Corporation now has an exclusive distribution agreement with Rotam North America to market and sell ReTurn XL insecticide/ nematicide, which recently received federal registration.

With the active ingredient oxymyl, ReTurn XL provides management of nematodes and control of sucking and chewing insects. It includes two-way foliar and soil systemic activity for above- and below-ground protection. Below ground, ReTurn XL manages Columbia root-knot, lesion and stubby root nematode. Above ground, it provides secondary insect management and is compatible with potato psyllid control programs.

It also suppresses purple top and zebra chip diseases and does not cause secondary pest flares. According to AMVAC, potato growers can further extend the crop protection benefits of seed treatments and in-furrow applications by applying ReTurn XL. Visit www.amvac-chemical.com.

In the News

Ag Industry Receives Additional ELD Waiver NPPGA Searches for New President

The Northern Plains Potato Growers Association (NPPGA) is taking applications for a new president. The new hire will replace Chuck Gunnerson who announced plans to retire after nearly a decade on the job.

Gunnerson’s 40 years in the potato industry included farming and operating Ada Produce Company, a red potato packaging facility in Ada, Minnesota.

He was involved in several industry organizations, including serving as the National Potato Council president in 2000.

The NPPGA represents 250 grower members in North Dakota and Minnesota and works in the areas of research, promotion, marketing, communication and legislation.

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration has granted an additional 90-day waiver from the electronic logging device (ELD) rule for agriculture-related transportation.

During this time, the agency will also publish final guidance on the agricultural 150 air-mile hours-ofservice exemption and personal conveyance.

The federal rule requires most trucking companies to record drivers’ hours of service on electronic logging devices and is meant to increase efficiency and safety in trucking.

Ag groups have expressed concern about the practicality of the ELD mandate, including how it could impact perishable produce. Agriculture Secretary Sonny Perdue has said that the rule lacks the necessary flexibility for hauling agricultural commodities.

The extension will push the ELD deadline for haulers of ag commodities to mid-June.

7-Eleven Adds Potato Tots

Convenience store chain 7-Eleven has added tots to its selection of hot snacks.

The new 7 Eleven Tots can be customized with toppings from the condiment bar also used to top nachos and hot dogs. Stores offer between six and 10 topping choices in addition to mustard and ketchup.

“Tots are hot,” said Robin Murphy, 7 Eleven director of fresh food. “They’re served up on appetizer menus at trendy bars and restaurants. You can even find tots and topping bars at weddings. 7 Eleven has its own version of a tot bar for customers to create their own favorite tasty tot concoction. We encourage culinary creativity.”

7-Eleven Tots are made with Idaho and Oregon potatoes, according to the company.

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21

In the News

Simplot CEO Announces Retirement

Bill Whitacre, chief executive officer of the J.R. Simplot Company, will retire Aug. 31.

Whitacre joined Simplot in 2000 as president of the company’s turf and horticulture business. In 2002, he was appointed president of the Simplot AgriBusiness Group and was named CEO in 2009.

Whitacre is credited with expanding Simplot’s international footprint and enhancing its position with communities, industries, customers and employees, as well as overseeing an increase in revenues from approximately $4.5 billion to $6 billion.

Whitacre was the company’s sixth CEO since company founder Jack Simplot stepped down in 1973. The company expects to select its next CEO from internal candidates.

U.S. Potato Exports Set Record in 2017

U.S. potato and potato product exports grew 4.58 percent in volume and 4.63 percent in value in 2017 compared to 2016. The 1,763,235 metric tons in total exports sets another calendar year record. This growth occurred across all categories, with fresh potato exports leading the way, up 6 percent. Seed potato exports were reported up 225 percent, but much of this was misclassified fresh exports, according to Potatoes USA. Exports of dehydrated potato products were up 3 percent, with frozen and chip exports both up 1 percent.

On a fresh weight equivalent (fwe) basis, frozen potatoes still account for 53 percent of the total, with dehy at 24 percent and fresh at 15 percent. Japan remains the largest market, receiving 688,161 fwe metric tons (MT), followed by Canada with 658,201 MT and Mexico at 554,461 MT. South Korea is now the fourth largest market at 193,783 MT, with the Philippines at 167,919 MT.

Charity Golf Tournament Approaches

AgWorld Support Systems has a full course of golfers but is looking for additional sponsors for the upcoming Ag World Golf Classic. The charity event is set for June 13 at the Canyon Lakes Golf Course in Kennewick, Washington. The tournament benefits the Ronald McDonald House, which provides temporary housing for families with children accessing medical services away from home.

If interested in sponsorship, visit www.agworldgolf.com.

Know Your Disease Answers (from page 15)

1.

The lesions on the underground stems are caused by the fungus Rhizoctonia solani. The disease is called Rhizoctonia canker. The fungus could have come from the seed piece or from the soil and is often managed by seed piece treatments and/or in-furrow fungicide applications. Research trials have not shown a benefit from applying fungicides in-season.

2.

These stems are affected by blackleg. Blackleg is most often caused by the bacterium Pectobacterium atrosepticum (formerly known as Erwinia carotovora subsp. atroseptica). Other bacterial species such as Pectobacterium carotovorum (formerly known as Erwinia carotovora subsp. carotovora) and Dickeya species (formerly Erwinia chrysanthemi) are also capable of causing blackleg. These bacteria are transported on seed.

Blackleg development is favored by cool, wet soils after planting followed by high temperatures after emergence.

Fungicidal seed treatments are not effective in controlling this disease, and nothing can be done to rescue infected plants at this point.

3.

The stunted Ranger plant in Photo C is affected by Potato Virus Y (PVY) – strain N:O in this case. The lesions in Photo D are the result of the virus and are not caused by a fungal pathogen. As a result, foliar fungicide applications will not be effective.

Nothing can be applied to cure infected plants, and a significant yield loss will result from the infection. In commercial fields, PVY is primarily introduced by seed. In-season infection can occur, but typically causes much less yield loss.

Planting clean seed is the most effective way to manage PVY.

Fox Packaging Opens New Facility

Fox Packaging opened a new printing facility in McAllen, Texas, in March.

With the new 32,000-squarefoot facility’s increased space and state-of-the-art printing and conversion equipment, the company expects to increase production with shorter lead times.

“We wanted a space that would allow us to keep up with demand without sacrificing the elevated customer service our partners have come to know and trust,” said Keith Fox, president of Fox Packaging.

Fox Packaging develops and distributes flexible packaging options for fresh produce packers and shippers throughout North America and Latin America.

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May / June 2018

Washington State University (WSU) plant pathologists have developed a new method to detect disease-causing pathogens in the soil. The test is designed to be quick, portable and inexpensive. The testing device relies on magnets to capture pathogens’ DNA from the soil.

The system was tested in potato fields in eastern Washington, but it will work on soil anywhere, according to the researchers. They say the test’s capability to provide on-site results can help growers make more informed, timely decisions about crop management.

Decreasing Row Spacing May Increase Yield

Research led by Washington State University (WSU) potato specialist Mark Pavek has been published in the American Journal of Potato Research. In Pavek’s report, he showed significant potato yield increases by decreasing row spacing to 32 inches compared to the 34-inch industry standard. According to the WSU study, 32-inch row spacing can improve economic returns by up to $379 per acre.

For more details on Pavek’s research, visit www.potatoes.wsu.edu.

Equipment Company Opens

Automated Produce Equipment (APE) opened in early April. The company provides produce machinery and packaging solutions primarily to the potato, onion and carrot industries. The company sells complete lines, as well as individual machines from bin tipping to packaging and robotic palletizing at the end of the packing line. APE’s vendors’ machinery is designed to reduce labor, increase efficiency and keep customers competitive in the industry, according to Mike McKnight, company president.

McKnight has been providing produce packaging equipment for nearly 10 years.

APE is based in Marietta, Georgia.

For more information, visit www.automatedproduceequip.com.

Nacho Fries Spice up Sales at Taco Bell

Cravings for Taco Bell’s Nacho Fries will have to hold off until summer. The restaurant chain has temporarily discontinued the limited-time menu item with plans to bring it back sometime this summer.

Nacho Fries are the most successful product launch in Taco Bell’s history. The spuds feature Mexican seasoning spices and are served with a side of warm nacho cheese. The snack was on Taco Bell’s Dollar Cravings menu from late January until early April. Taco Bell extended its limited-time run to meet demand.

In the first five weeks, the chain’s 7,000 restaurants sold more than 53 million orders of Nacho Fries. Customers included the fries in one out of every three orders.

Bill Increases Potato Research Funding

The 2018 omnibus spending bill passed in late March includes $2.5 million dollars for National Institute of Food and Agriculture (NIFA) Potato Research Special Grants that support competitive potato breeding projects across the country. Each of the peer-reviewed research projects address challenges impacting potato production, utilize the expertise of USDA scientists and independent plant breeders, and deliver measurable improvements in the efficiency and quality of potato production. Growers, state grower organizations and land grant universities provide more than a two-to-one match to funding provided by NIFA.

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23

PAA Previews Plans for Boise F

or the first time in more than three decades, the Potato Association of America (PAA) is returning to Idaho for its annual meeting. The organization’s 102nd annual meeting is set for July 22-26 in downtown Boise.

Attendees will be able to hear about the latest potato research and extension information, network and exchange ideas, tour Idaho agriculture and enjoy the region’s unique outdoor activities. People from all facets of the potato industry nationally and internationally attend the annual meeting. PAA membership is not required.

Meeting Highlights

The meeting kicks off Sunday, July 22 with a president’s reception overlooking downtown Boise from the top of Jack’s Urban Meeting Place.

Monday, July 23 includes a grower and industry session in the morning with an afternoon symposium titled “Impact of Quarantined Pests on Potato Production.”

Attendees will also hear from Dr. Huang Sanwen, a professor at the Institute of Vegetable and Flowers at the Chinese Academy of Agricultural Sciences in Beijing. A special one-day registration for the Monday sessions is available.

Tuesday, July 24 will feature presentations focusing on the six PAA sections: breeding and genetics; certification; extension, production and management; physiology; plant protection; and utilization and marketing. A poster session will follow the presentations in the afternoon.

The evening agenda includes an opportunity to experience unique Idaho culture at an outdoor Basque block party with food and traditional dance. The PAA will also be holding a live auction to benefit the PAA Endowment Fund. Up for bid will be various items including potatothemed quilts created and donated by Carol and Don Halseth.

The schedule for Wednesday, July 25 is packed with more research and extension presentations, the annual business meeting and a banquet. During the banquet, 24

Potato Country

May / June 2018

the PAA will announce the Honorary Life Membership award recognizing outstanding contributions to the potato industry. This is the highest honor awarded to an individual by the PAA. Over 200 honorary life members have been selected, notably R.D. Offutt, J.R. Simplot, and Wallace and Harrison McCain.

The “Wine and Hops” agricultural tour is on tap for Thursday, July 26. The Boise area has long been known for production of seed crops such as alfalfa, sweet corn, onions and carrots that make their way to fields around world. More recently, the area has become known for producing world-class wines and bountiful crops of hops used in brewing beer. Tour stops will include lunch at a local winery.

Meeting Features

Outstanding student presentations during the meeting will receive the Frank L. Haynes Graduate Student Research Award. Dr. Haynes was a longtime professor of potato breeding and genetics at North Carolina State University. The award was initiated in 2000 by his wife, Dr. Kathy Haynes, USDA-ARS potato breeder at Beltsville, Maryland, and family.

Rumor has it that during its 2018 Famous Idaho Potato Tour helping raise awareness, funds and food for non-profit organizations, the Big Idaho Potato Truck will also make a stop at the PAA meeting.

Other Activities

Meeting organizers suggest attendees enjoy fishing, rafting or golfing on their own on Sunday. Graduate students may enjoy an escape room or teambuilding exercise. On Monday evening, attendees can catch a Boise Hawks baseball game or participate in the Pedals and Pints Bike Tour of downtown Boise.

Whitewater rafting on the Payette River with a professional guide is available as an alternative to Thursday’s ag tour.

Meeting organizers are also offering an accompanying person’s program including a day trip to Payette Lake near McCall, Idaho.

Potato Association of America

The PAA’s first annual meeting was held in Ithaca, New York, in 1914 and was attended by 67 American delegates.

This professional organization of private and public potato researchers, university extension, industry personnel and growers represents the “scientific arm” of the potato industry and now has over 550 members from 32 countries on six continents. Special, sustaining members include agribusiness, grower commissions and boards, and farming operations.

Besides fostering emerging technologies and global approaches for potato improvement, the PAA’s mission is to collect and disseminate scientific information relating to all phases of the potato industry including teaching, research, outreach, breeding, certification, production, pests, transportation, processing, and marketing and utilization.

Since the first meeting in New York, the annual PAA meeting has been held in 26 other states, Washington D.C., six Canadian provinces and Mexico City. The only time the annual meeting has been held in Boise was in 1985.

For more information on the PAA or to become a member, visit www. potatoassociation.org, or find and follow the PAA on Facebook.

For more information on meeting registration, lodging and events, visit www.uidaho.edu/PAA2018, or join the online 2018 PAA meeting community by tweeting #PAABoise.

Potato Association of America 102nd Annual Meeting July 22-26, 2018 Boise, Idaho www.uidaho.edu/ PAA2018

Meeting

Calendar June 13

July 18-20

5th Annual Ag World Golf Classic Canyon Lakes Golf Course, Kennewick, Wash. www.agworldgolf.com

National Potato Council Summer Meeting Icicle Village Resort Leavenworth, Wash.

Hillary Hutchins, hillaryh@nationalpotatocouncil.org

June 20 OSU Potato Field Day OSU HAREC, 2121 S. 1st St., Hermiston, Ore. Lora Sharkey, (541) 567-8321

Symposium Lineup The “Impact of Quarantined Pests on Potato Production” symposium, set for July 23, includes the following lineup of presentation topics and speakers: • Quarantine Matters - A U.S. Perspective – Jonathan Jones, national policy manager,

USDA APHIS • Quarantines and Schemes for

Diseases of Potato - An

International Perspective – Jacquie van der Waals, associate professor, plant pathology, University of

Pretoria, South Africa • An Idaho Grower’s

Perspective – Bryan Searle, Searle Farms, Shelley, Idaho, and Idaho Farm Bureau president • Plant Germplasm Quarantine Program: Protecting U.S.

Agriculture and its Natural Resources – Ronald D. French, lead plant pathologist/ program manager, Vegetable Quarantine

Programs, USDA APHIS • The Impact of a Federal Quarantine on the Seed Potato Industry – Terry Bourgoin, state plant health inspector,

Maine • Potato Cyst Nematode

Eradication and Containment in the U.S.: Successes and

Struggles – Dr. Louise-Marie Dandurand, director,

University of Idaho PCN Project

June 21 WSU Potato Field Day WSU Othello Research Unit, Othello, Wash.

Mark Pavek, (509) 335-6861 or mjpavek@wsu.edu

June 25-27 United Fresh 2018 McCormick Place Convention Center Chicago, Ill. www.unitedfresh.org

July 22-26 Potato Association of America Annual Meeting Boise Centre Boise, Idaho www.uidaho.edu/paa2018

Oct. 18-20 PMA Fresh Summit Convention and Expo Orlando, Fla. www.freshsummit.com Editor’s note: To have your event listed, please email Denise Keller at editor@ columbiamediagroup.com. Please send your information 90 days in advance.

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25

Potatoes USA

Potatoes. Real Food. Real Performance.

By Sarah Reece, Potatoes USA Global Marketing Manager

W

hat are you eating? That’s what Potatoes USA will be asking consumers when it launches its new campaign designed to reach athletes.

Talking to athletes represents a huge opportunity for the potato industry, considering that 16 percent of the population or 30 million people exercise at least two times per week and participate in competitive events. This performance athlete segment of the population will be the initial target audience as Potatoes USA embarks on this new approach. Future efforts will drive to expand the audience from performance athletes to athletically active consumers to everyday hardworking individuals looking to fuel their activities.

Over the years, Potatoes USA has touted a variety of positive potato health benefits like potassium and vitamin C, but potatoes have a stronger story to tell. It is time to shift the conversation from giving people permission to eat potatoes to telling them why they should eat potatoes. No more apologizing! Through a process of analyzing potato characteristics and their implications, athletic performance was identified as the one lifestyle benefit that could strengthen the potato industry’s position in the marketplace.

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Potato Country

May / June 2018

To learn more about the exercise and nutrition habits of American adults, Potatoes USA conducted a full segmentation of the United States. Topline findings include: • America’s favorite methods of exercise include fitness walking, running/jogging, weight training and cycling.

• Athletes most often try to incorporate protein, fiber and vitamin C into their diet, all of which potatoes have.

• 38 percent of active people use potatoes in relation to exercise, which is a similar rate to beans and brown rice.

• Potatoes rank fourth as a top-of-mind source of carbohydrates for fuel behind pasta, bread and rice, giving potatoes a lot of opportunity for growth.

• Active people prefer eating naturally grown food over processed food. What could be more natural than potatoes?

Potatoes are real food that will help athletes drive their performance as they strive to reach their goals. The “What Are You Eating?” campaign reintroduces potatoes as performance food and will highlight the way athletes fuel. The campaign will capitalize on the internal competition of athletes, constantly training with the goal of doing better each day than the day before. The campaign will celebrate moments of personal achievement and showcase the intensity and drive of athletes, all with the help of potatoes as fuel. The campaign will respond to the question of “What Are You Eating?” with the response “Potatoes. Real Food. Real Performance.” and will call out key potato nutrients: carbohydrates, potassium and three grams of protein.

The “What Are You Eating?” campaign will launch in July 2018 and will be integrated across all of Potatoes USA’s marketing programs and will include social media advertising, nutrition and athletic performance influencer education, media relations, recipe and content development, consumer and influencer events and strategic partnerships.

Imagine athletes meal prepping for the week and including potatoes in their planned diet, potatoes being served on a race course to refuel athletes during a long run or bike ride, seeing potatoes alongside other performance foods in athletic stores and supermarkets or elite athletes sharing how they use potatoes to help fuel their performance.

Potatoes USA has already started engaging with athletes online, in the media and by aligning with key events like IRONMAN and runDisney. Athletes have loved learning about potatoes and performance and have said, “This changes my perspective on potatoes!” and “I could totally do this as a snack on my ride!”

Athlete perceptions of potatoes are already changing, and athletes love that they need to include potatoes in their diets before, during and after their workouts.

So, the question is, what are you eating?

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Market Report

Growing Pains for the French

R

ecent expansion of North American French fry capacity is designed to facilitate export growth. So far, the expected growth has failed to materialize.

During calendar year 2017, combined frozen potato product exports from the U.S. and Canada (excluding trade between the two countries) totaled 2.37 billion pounds.

That is 17 million pounds less than 2016 exports, a 0.7 percent decline.

Several factors are contributing to the lack of growth in export trade, including stiff competition from European product, strong domestic demand for French fries and other frozen potato products, rawproduct supply limitations and processing capacity issues. Each of these issues could be considered industry growing pains. In this article, we review some of the issues that the North American French fry industry faces in its efforts to ramp up production.

Global Market In 2017, major exporters shipped 6.21 billion pounds of French fries and other frozen potato products to customers outside of their local trading zones. Local trade zones include North America (the U.S. and Canada) and EU-28 internal trade. The exports exceeded year-earlier shipments by 192 million pounds, a 3.2 percent increase.

Last year was one of the slowest growth years that the industry has experienced in the past 15 years. Average growth during that time has been 8.1 percent per year. Nevertheless, the 2017 experience highlights some of the challenges facing North American fryers.

North America continues to lose market share in the global French fry market. In 2016, North American processors sold 38.2 percent of the product sold into the global market from the five processing regions we track. That is down from a 39.7 percent share in 2016 and from a 62.2 percent market share in 2002. It is not that exports have failed to grow during that time; they have increased an average of 4.6 percent per year. However, EU external exports have increased an average of 13.7 percent per year during that 15-year period. EU growth during 2017 was 8 percent. EU processors – especially those in Belgium and the Netherlands – have been in expansion mode during that time.

They have focused on increasing exports to countries outside of the EU. North American processors have ceded global expansion to their European counterparts, for the most part, until the last few years. They have focused on modernizing plants, with limited interest in capacity expansion. It has only been the last two to three years that the industry has shown much interest in expansion. It often takes two years or more to build a new production line, and longer to fine-tune it, so that it reaches its design capacity. Many older plants have been running beyond their design capacity in recent years. As new capacity has come online, fryers have had to take significant downtime on older plants to perform deferred maintenance and to refurbish equipment. That has limited production increases. It is likely to do so again for the 2018-19 processing season.

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How much business has North American fryers ceded to competitors? If the North American market share had held constant at the 2002 level (62.2 percent), 2017 exports would have totaled 3.87 billion pounds.

That is 1.49 billion pounds more than actual exports. It would have required five more 300 million-pound production lines to supply that volume. From a grower’s perspective, it would have required an additional 45,000-70,000 acres of potatoes to supply the plants, depending upon where the potatoes were grown.

Needed Expansion How much expansion is needed during the next five years? That depends upon growth rates for both domestic consumption and the global market, as well as desired share in the global market. Let’s take a quick look at each of those factors individually.

The domestic market is much larger than the global market, but growth has been much slower. We estimate domestic consumption in the U.S. and Canada at approximately 11.1 billion pounds during 2017. After years of no-or-slow growth, demand has picked up in recent years. There is a substantial amount of pent up demand that awaits new capacity. Therefore, we will assume that consumption will increase by 2.5 percent per year in 2018 and 2019, followed by 1 percent growth for the remainder of the period. That would take domestic consumption to 12 billion pounds by 2022, a 900 million pound increase over five years.

Gauging the global market is more challenging. While it is possible that changes in tax laws and foreign exchange rates might allow North American product to be more competitive, capacity limitations make it unreasonable to expect North American fryers to gain market share during the next five years. We will assume that North American fryers intend to maintain their market share at the 2017 level of 38.2 percent. We will look at two scenarios. In the first, growth in global French fry demand slows to 5 percent per year. At a constant market share, North American offshore exports would increase

Fry Industry by 656 million pounds, to 3.03 billion pounds, under that scenario. If the global market were to continue growing at an 8.1 percent average rate, North American fryers would need to export 3.5 billion pounds of product in 2022 to maintain their current market share. That is 1.13 billion pounds more than 2017 exports.

If fryers wish to maintain their current market share in the global market while supplying domestic demand, they will need to produce between 1.5 and 2 billion pounds more finished product in 2022 than they did in 2017. Current announced capacity expansion is between 1.2 and 1.3 billion pounds. That suggests that there is room for at least one to two additional 300 million-pound lines to be built during the next five years. That would still leave the industry running at close to capacity.

Supply Limitations Raw product procurement could add to the industry’s growing pains. Fryers would need 25-33 million cwt more potatoes in 2022 to cover the projected usage increases. While yield increases might contribute a portion of the extra product, much of it would need to come from increased acreage – either new ground or ground shifted from table potatoes to processing use. Depending on where the potatoes were grown, needed increases could range from 40,000 to 80,000 acres or more.

While North American potato acreage cuts have been much more extensive over the past 20 years, finding enough ground to grow the extra potatoes may not be as easy as the numbers suggest. Much of the retired potato ground is in areas far removed from processing plants. A large portion of the ground is marginal and unlikely to come back into production. In addition, growers extended crop rotations as they reduced acreage. Processors currently require contract growers to be on a three-year minimum rotation. Unless they eliminate that requirement, expansion on current prime potato ground may be limited. The industry may need to pull ground away from other uses or find virgin ground (and the needed irrigation water to go with it).

By Bruce Huffaker, Publisher North American Potato Market News

HUFFAKER'S HIGHLIGHTS • French fry exports failed to grow in 2017 in spite of increased processing capacity.

• North America’s share of the global French fry market fell from 62.2 percent in 2002 to 38.2 percent in 2017.

• Pent up domestic demand will compete with the export market for new processing capacity.

• Fryers will need 1.5-2 billion pounds of new capacity by 2022 if they hope to maintain North America’s current market share in the global French fry market. That would require one to two more 300 million-pound lines than either have

been announced or are currently under construction.

• Finding an additional 40,000-80,000 acres of ground suitable for potato production could be challenging.

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 napmn@napmn.com.

PotatoCountry.com

29

Potato Growers of Washington

The Only Constant in the Potato Industry is Change

By Dale Lathim, Potato Growers of Washington

A

s you might recall, my column in the Feb. 2018 issue of Potato Country discussed the expansions coming to the Pacific Northwest, specifically the Columbia Basin. At that time, everything looked set for incremental increases in production capacity for the next four to five years, depending on build schedules.

Most of that remains in place, but a major change has occurred as Simplot has run into some delays in the permitting process and has shifted resources to building a new line in Manitoba, Canada, in order to meet the ever-growing demand for finished products.

On the surface, that may not sound so bad, as there was concern over how we would handle adding two new production facilities late in the 2019 crop year. It will be much smoother with just the incremental increase from the Richland, Washington, facility coming online in 2018 and then the startup of the Hermiston, Oregon, facility in the 2019 crop year.

On paper, that looks and sounds like a more manageable situation. However, all of that expansion is with one company that is already the largest in the Basin. While we have an excellent relationship with Lamb Weston and we anticipate that relationship only growing stronger as the processor grows, Simplot’s addition of a new facility was going to be an opportunity for its growers to participate in some of this industry growth and make Simplot more competitive in the international frozen potato market. Expanding its Manitoba plant will definitely help the company meet more of the increased domestic demand, but logistically it will not benefit its international plans nearly as well as a plant in the Basin, close to the ports, would do.

Fortunately, I am not aware of any growers making unbreakable commitments for land or new storages to support the Simplot plant, but many were gearing up with plans to expand. Some of the increased production may become available to Lamb Weston, but the expansion of two companies at the same time was an opportunity the growing community has not been able to leverage in improving pricing for decades.

Granted, Simplot has stated that it plans to eventually build the new plant in the Basin once the permits are finally in place, but who knows how long that will be and what may happen in the meantime?

Will Lamb Weston or McCain take the opportunity to expand another plant and garner even more of the last available potato acres before Simplot can build its plant? Will the permitting process ever be successful?

While this may ultimately be good news for Lamb Weston and its growers, I cannot help but be disappointed for the Simplot growers who have been waiting years for this expansion to take place. Let’s all hope that its plant in the Basin will eventually be built.

PGW Changes

In addition to the changes in the processors’ building schedule, we are about to suggest some changes to the structure of Potato Growers of Washington (PGW).

It was 30 years ago this spring that some major turmoil and

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very militant negotiations between the Washington Potato Growers Association and Lamb Weston took place. Even though there are only a few people who actually took part in actions of that time period still active for either side, I am sure we have all heard the horror stories more times than we can count.

The good news that came out of that was the passing of the Agricultural Marketing and Fair Practices Act, which is the legislation under which we continue to negotiate your potato contracts. Also, there was the need to disband the Washington Potato Growers Association and form the Potato Growers of Washington, Inc. In the past 30 years, we have only made minor changes to the bylaws once, and that was in 2003. I thought that the 30th anniversary of that momentous potato contract battle and the origins of PGW would be a good time to review and possibly change some of the structure of the organization. A lot has changed over the years, so much so that many of the original directives in our articles of incorporation and our bylaws no longer fit today’s industry.

We have asked one of the nation’s top law firms to review and update our documents to fit today’s industry. We expect to have the proposed changes ready to present to our membership at an annual meeting later this spring when we will discuss and vote on whether or not to adopt the new structure. I hope that when the time comes, everyone will be able to attend the meeting to hear the proposal and that after consideration, you will see that it will greatly benefit the majority of our growers in both the long- and short-run.

Know Your Insects Answers (from page 14)

Photo A: This is a common kind of predaceous ground beetle known as Amara. These beetles are about a half-inch long, very shiny and can be seen scurrying across the soil all season long.

Photo B: This is a big-eyed bug, also known as Geocoris.

These are important predators of aphids and other small insects in the foliage during the growing season, but also spend a lot of their time on the soil surface, running quickly from clod to clod and plant to plant.

Photo C: This is a harvestman, also known as “daddy longlegs” or Opiliones. These are arachnids, close relatives of spiders and mites. They are aggressive predators of insects on the ground and sometimes in the crop canopy. Some species of harvestman are small and live in the soil.

Photo D: This is another predaceous ground beetle known as Bembidion. These beautiful golden beetles are often the most apparent and arguably the most abundant soil-surface predator in our crops. Like other ground beetles, the larvae are also predaceous and live in the soil.

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