The Potato Heartland

The grower-shippers in the Red River Valley of North Dakota and Minnesota are predicting a good outlook for high-quality, easily promotable crops of reds and yellows this season.

Red River Valley potatoes at Folsom Farms, East Grand Forks, MN, run through the wash.

Optimistic predictions for an excellent crop of consistent volume of Red River Valley potatoes is gratifying news for the multitude of buyers and consumers who look forward to these famous fresh spuds. This forecast is even more welcome on the heels of last season’s severely reduced crop resulting from devastating weather. Red River Valley producers have avoided both deluge and drought this season, resulting in a high quality, plentiful yield of red and yellow potatoes.

The Red River Valley of eastern North Dakota and western Minnesota is the nation’s leading producer of red potatoes and is now emerging as a leader in yellow potato production. Growers here claim their annual harvest is unparalleled in quality, color, texture and taste. Marketers invite retail and foodservice buyers to compare their fresh red potatoes to all others produced in any other growing area in the country. A multitude of retail and foodservice buyers appears to agree about their superior quality, as they look forward each season to the new crop as it gains momentum.

With more than 250 growers producing more than 40 million hundredweight (cwt.) per year, an estimated 17 percent of the potatoes go to the fresh market. The region is the third-largest potato-producing area in the nation, according to the Northern Plains Potato Growers Association, East Grand Forks, MN.

The colorful spuds reaching the fresh market result from unique growing conditions not found anywhere else in the world. What used to be a mammoth glacial lake is now the rich black loamy soil of the Red River Valley contributing to the brilliant hues of red potatoes. The texture and smoothness of these potatoes are added bonuses for consumers.

As yellow varieties continue to gain market share nationwide, the trend has been mostly at the expense of Russets and whites, two potato types shippers in the Red River Valley have not grown for the fresh market in years. While U.S. red shipments increased about 14 percent between 2009 and 2015 (not including the 2016 reduced red production in the valley), white potato shipments decreased 43.3 percent, according to numbers compiled by the North American Potato Market News.

In the Red River Valley, yellow potato production increased three-fold in the past seven years. Overall, they make up about 14.5 percent of the total, according to Ted Kreis, marketing and communications director for the Northern Plains Potato Growers Association. “We can never lose sight of our identity as the nation’s leader in red potato production, but we certainly need to let it be known we are a great source for yellow potatoes, too.”

Paul Dolan, general manager of grower-owned cooperative Associated Potato Growers Inc. (APG) in Grand Forks, ND, reports that the cooperative’s acreage mirrors that trend. With 15 growers spread throughout the Red River Valley in three different growing regions, the cumulative acreage is about the same as last year, but the yellow plantings comprise a bit more of the overall percentage. “The yellows we’ve been growing have very good taste and texture,” adds Dolan.

Steve Tweten, president and chief executive of Buxton, ND-based NoKota Packers, echoes that sentiment. Because NoKota is the exclusive sales agent for H & S FreshPak — a new Hoople, ND-based company that grows and ships both yellow and red potatoes — more yellow volume will be supplied to customers. “Overall, the additional 150,000 cwt. will give us more tonnage for our customers and more exposure,” he says.

Dave Moquist, owner of O.C. Schulz & Co., Crystal, ND, points out that the yellow varieties grown in the Red River Valley are superior, thanks to the state’s extension service breeding program. The yellows offer an added option to the region’s red potatoes. “No other red potatoes compare in quality and market availability,” he stresses.

More Options

Yellow potatoes are gaining ground in the Red
River Valley and account for an estimated 15
percent of the fresh volume shipped.

Buyers can also be assured these spuds will be offered in a wide variety of packaging options from most shippers, including brand-name and private labeling.

Aside from the traditional 3-, 4- and 5-pound consumer bag offerings, NoKota Packers markets part of its crop through Fresh Solutions Network, which offers a line of convenience, gourmet and fresh-cut potato products. The network is a group of family-owned growers and shippers who work together to make improvements to the potato and onion categories. “Steamables are becoming increasingly popular,” says Carissa Olsen, chief operating officer for NoKota Packers. “They are the best microwavable packs on the market.”

Dolan says the co-op, said to be the largest volume shipper in the valley, offers potato polishing as one of its services to stand apart from the competition. He also stresses customers can be assured that APG is in it for the long-term. “One thing we have is a lot of entities growing potatoes that have young growers involved,” he says. “That’s healthy for the crop — and healthy for the industry.”

Capturing a lot of attention from competitors and buyers is the new venture, H & S FreshPak, which operates out of what used to be the Northern Valley Growers fresh potato wash plant in Hoople, ND. Members of well-established grower-shippers O.C. Schulz & Sons, Crystal, ND, and J.G. Hall & Sons, Hoople, ND, partnered to purchase the plant. Andy Moquist and T.J. Hall are co-managing the company. The facility allows for more shipments at the beginning of the season. “It’s a new venture for both of us,” says Moquist. “It will really help increase capacity for customers, now that we are running from three sheds and not two.”

One common trait among the potato producers in the valley is they grow the crop on dry land. APG’s Dolan says the unirrigated product is key to a tastier potato.

Retail and foodservice buyers agree. Stephanie Sands, potato buyer and category manager for Russ Davis Wholesale in Inver Grove Heights, MN, says shippers make an extra effort to put up a consistent, attractive pack, and she expects above-average quality this year because of ideal weather during the growing season. “They have a nice color, good texture and great flavor,” she says. “We want to give customers what they ask for, and they strongly prefer the Red River Valley potato.”

Associated Wholesale Grocers, Norfolk, NE, supplies more than 800 stores in the 16-state Midwestern region. Jason Anderson, produce director, says that in addition to its freight advantage because of its location in the Upper Midwest, the Red River Valley provides other plusses. “We just really enjoy the color and clarity of the product. They hit the quality market we are looking for.”

Promotions Encouraged

Good, promotable volume is already being welcomed by retailers as this season begins to peak. Northern Plains Potato Grower’s Kreis says area shippers generally set up their own promotions with retailers, but he emphasizes the association is available with any assistance to help increase sales at retail and foodservice.

The Red River Valley group maintains presence at trade shows and is once again exhibiting at the Produce Marketing Association Fresh Summit in New Orleans this year. Kreis and area grower-shippers exhibited at the Midwest Produce Expo and will have a booth at the New York Produce Show and Conference in December.

The association also has a new ad theme: “Thinking RED Potatoes? Think RED River Valley! Beautiful Yellow Potatoes, too.” The design can be found in the association’s print, digital and trade show advertising. “Consumers are turning more to red and yellow potatoes than they have in the past. We’re letting them know they should be promoted more,” says Kreis.

Potato Bowl Celebrates Football and Potatoes

Celebrating potatoes and football in one mega event in the Red River Valley of North Dakota and Minnesota, the 52nd Annual Potato Bowl USA provided festivities for football and potato lovers of all ages. This year’s event, held Sept. 5-9, 2017, offered a variety of activities, including a French fry-eating contest and parade, and, of course, a football game.

Ted Kreis, director of marketing and communications for the Northern Plains Potato Growers Association (NPPGA), Grand Forks, MN, along with several area potato growers and shippers, has been involved on committees coordinating this event for a number of years. This year’s festivities were kicked off with Hugo’s Potato Bowl Plinko game and continued with a golf tournament.

A potato chip giveaway and a baked potato bar at all Hugo’s retail store locations, “The World’s Largest Fresh Fry Feed” and fireworks were among the events held at the University Park & Memorial Stadium. A French fry-eating contest sponsored by J.R. Simplot, and a potato giveaway sponsored by Black Gold Farms, were also held. Black Gold Farms gave coupons redeemable for potatoes at any Hugo’s location to the first 500 families to enter the gates at Memorial Stadium, plus a chance to win Hugo’s gift cards. Kids also got a free glow stick courtesy of Black Gold Farms.

Potato Bowl 1K and 5K races, along with an evening concert and street dance in Grand Forks highlighted the Sept. 8 events.

The final day of the extravaganza started with a pancake breakfast before the Potato Bowl Parade. A mega tailgating party preceded the annual football game at the Alerus Center in Grand Forks, ND. In a great ending to the week’s festivities, University of North Dakota shut out Missouri State with a score of 34-0.

The first-ever Potato Bowl game was in 1966 and was billed as a battle between the two largest potato-growing regions in the United States, Idaho and the Red River Valley. Festivities surrounding the celebration of potatoes and football continued to increase, and the event grew more popular with each passing year.

The idea of creating a week of activities joining together football and potatoes was originally put together by several administrators and coaches at the University of North Dakota (UND). Although UND is no longer always pitted against an Idaho college for the big game, the tradition of celebrating potatoes with football has remained.

What’s New in the Red River Valley?

H & S FRESHPACK, Hoople, ND — This new growing and shipping operation brings a wealth of experience. O.C. Schulz & Sons, Crystal, ND, and J.G. Hall & Sons, Hopple, ND, have partnered to form the new business, H & S FreshPak. The two well-established potato growing and shipping companies have acquired the wash plant, which was formerly owned by the Northern Valley Growers, a small group of growers in the Red River Valley.

Andy Moquist and T.J. Hall are co-managing the operation. Moquist brings 14 years of shed management and sales experience from O.C Schulz & Sons, and Hall has been in shed operations for 20 years at J.G. Hall & Sons, including 10 years in sales.

Moquist reports that at least 80 percent of the potato volume run from the H & S FreshPak facility will be from the two growing operations. “Our demand has sometimes exceeded our supply,” says Hall. “The opportunity came for us to buy this operation, so we will now be more efficiently able to meet the needs of our customers.”

The former Northern Valley Growers management and workforce at the plant have been retained, and the facility was already equipped with upgraded machinery, including an Odenberg optical sizer. Some repairs have been completed in the storage area.

The volume for H & S FreshPak will be marketed through NoKota Packers, Buxton, ND. “We were looking for a sales group to handle our volume, and we believe NoKota Packers is a good fit,” says Hall.

Ted Kreis, marketing and communications director for the Northern Plains Potato Growers Association, Grand Forks, MN, has worked with the fresh shippers in the Red River Valley for several years and sees a bright future for the new owners. “These are two of the most established and reputable potato growing families in the Red River Valley. You can be assured that H & S FreshPak will be a first-class operation.”

NOKOTA PACKERS, Buxton, ND — Carissa Olsen has been named chief operating officer of the company. Olsen has been with NoKota Packers since 2005, working in operations and management. She was promoted to the position last winter, according to Steve Tweten, president.

NoKota Packers will be taking on an additional 150,000 hundredweight (cwt.) of potato volume this season, as it will now be handling all sales for H & S FreshPak. “We will be able to answer our customers’ needs better with the additional capacity,” says Olsen. “It is a great marketing partnership between the two companies.”

NoKota Packers also markets part of its crop through San Francisco-based Fresh Solutions Network. Fresh Solutions provides marketing, category management and other services. In addition to the traditional retail poly-bagged product, it offers a line of convenience, gourmet, and fresh-cut potato products, and custom packs according to customer needs.

ASSOCIATED POTATO GROWERS, Grand Forks, ND — Paul Dolan, manager, reports that the co-op has installed a palletizer in its Grand Forks facility that takes on 50-pound masters. The Grand Forks headquarters is one of three locations in the Red River Valley from which the co-op operates.

The company also added a potato polisher at its Drayton, ND, facility. “Now, all three sheds have a polisher. Polishers help give a nice sheen to the potatoes, allow us to put out an even better product, and make them more attractive to the buyers and consumers,” says Dolan.

KERIAN MACHINES, Grafton, ND — The company is celebrating 50 years in business this year, according to president and owner James Kerian, one of the third-generation members of this family owned operation. In 1967, Louis Kerian, James’ grandfather, was managing potato warehouses in the region when he decided to design his first potato-sorting machine. His innovation caught the attention of neighbors who solicited his expertise to create custom designs.

Louis Kerian’s son, John, joined the company in 1978, and expanded its product line and marketing region. The company also started exporting its machines to other countries.

Today, Kerian Machines offers more than 150 different products and delivers to more than 60 countries. “It’s great that we have provided reliability and consistency for 50 years,” says James Kerian. “When growers and shippers get quality equipment, we’ve been able provide parts and upgrades.”

Kerian adds he is confident the company will continue to expand and supply equipment and technical support for its longtime and future customers.

While potatoes are still the single largest application, the company continues to expand into specialized sizers for an increasing number of commodities, including fruits, vegetables and nuts. In the potato arena, offerings include sizers for mini-tubers.

New this year is “a mobile-friendly website.” Kerian has also produced a series of videos on maintenance of the sizers. The videos can be accessed through a YouTube link or emailed to customers upon request.

J.G. HALL & SONS, Hoople, ND — Several upgrades to the wash plant have been made, including the addition of another grading line. According to T.J. Hall, sales manager, the new line will help increase efficiency and increase packing capacity for customers. J.G. Hall & Sons also has a packing facility in nearby Edinburg, ND.

Hall was promoted to sales manager last season, reports owner Greg Hall. Jackson Hall, returned to the company last year and works with food safety compliance.

O.C. SCHULZ & SONS, Hoople, ND — Following one of the toughest seasons on record, the company is back in full operation this year. Dave Moquist, owner, expects good, potato volume with great quality and consistent red and yellow potato shipments this season.

O.C. Schulz was among the worst victims of 2016’s devastating weather, and extensive destruction of the exterior of the company’s wash plant added to the crop damage.

NORTHERN PLAINS POTATO GROWERS ASSOCIATION, Grand Forks, MN — NPPGA launched a new website dedicated to promoting potatoes grown for the fresh market and branded as Red River Valley Potatoes, says Ted Kreis, marketing and communications director. The new website address is RedRiverValleyPotatoes.com.

Previously, the brand had been marketed on the association’s website, NPPGA.org. “That arrangement had worked well for many years, but the targeted audience of consumers and wholesale buyers had little interest in much of the content on that site, so the marketing message for Red River Valley Potatoes got a bit watered down,” says Kreis. “Plus, it was time for a fresh look for the highly competitive fresh market.”

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