Addressing A Variety Challenges For Potato Growers

The potato industry has faced a variety of headwinds over the past couple of years, resulting in canceled contracts, lower prices and tough economic times.  Jamey Higham, Executive Director of the Idaho Potato Commission, said unfortunately there’s not an easy answer that’s going to fix the economic environment.

He said ideally, he would like to see supply just a little bit under what demand is.  But, he noted, that’s a difficult balancing act, because when the supplies are too low, while prices do go higher, the industry risks market share and customer satisfaction.

“I think it's not just our growers that are struggling. I think there's a lot of Americans that are struggling to make ends meet," Higham said.  "And so our demand for frozen products is probably not where we would like it to be. Our demand for dehydrated products is not where we'd like it to be. And the same for fresh.”

Crop Size Isn't The Only Concern For The Potato Industry

Higham noted a new challenge, while not a big one at this time, is the number of people in the United States that are on GLP-1 inhibitor drugs.   And while that’s only 7% of American adults, that means 7% of the adult population is eating less foods; less potatoes, corn, beans, meat, etc.

Higham added while there are other headwinds impacting the industry, he thinks only time will truly fix the current economic challenges.

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