O.C. Schulz optimistic on season’s markets
O.C. Schulz optimistic on season’s markets
As red potato digging commenced on Sept. 10 many business aspects looked great for O.C. Schulz & Sons Inc. David Moquist, the secretary-treasurer of the grower-shipper located in Crystal, ND, said the quality and color were good. “It looks like a nice, average crop. The mix of “a” and “b” sizes was a normal percentage “which is a good thing.” Verification of such size details won’t be known until washing and grading begins sometime in the third week of October.
David Moquist and his son, Andrew Moquist, oversee the movement of red potatoes from harvest trailers into their storage at O.C. Schulz & Sons Inc. in Crystal, ND.It was a good thing that the shipping date was more than a month away because when the digging started “the price is below our cost of production. Where it goes from here, I am not sure. But I think once we’re done with the summer crop and potatoes are into storage, I don’t see an oversupply going into the winter. A lot will have to do with people’s attitudes. Supplies could be short but they [shippers] might think they’re long” and be too willing to accept low prices. “I hope the market strengthens. Like anybody else, I don’t like to do something for nothing.”
On North Dakota’s flat, far northern plains O.C. Schulz maintains its soils by rotating potatoes with wheat, soybeans and sugar beets. In September, wheat prices were down, as well as potatoes. A year ago, wheat was in the range of $7.50 to $8.50 per bushel. In September 2015, this was down to $4.50.
“Farming is not for the weak of heart,” Moquist noted. “We do not have a lot of control over all of that. It would make it easier if the commodities were all higher.” But, he added, “All of the experts tell us, ‘Don’t expect a big change.’”
He noted the basic axiom of the produce industry: The key to success is having a weather disaster hit another growing area “and hoping you don’t have a disaster yourself.”
The company is constantly testing new potato varieties.
Moquist indicated that O.C. Schulz “is always looking for possible future varieties.” The firm typically plants a 100-foot-long row of different potato varieties. “It’s not like you’re going to plant 40 acres and see how it goes.” These are grown and harvested like commercial-volume potatoes. Of course they are identified when the spuds are put into storage. The pack out of the tested varieties is a key to future decisions.
Yellow potato varieties are receiving special consideration at this time, he added.