Bob Johnson preparing for challenging season
Bob Johnson preparing for challenging season
Bob Johnson, representative for Katz Produce Sales LLC in Rosholt, WI, knows what it takes to move fresh potatoes into the pipeline. With the Wisconsin potato harvest ramping up, he said, the industry will have its own set of challenges to address this season.
“Trucks are really tight now,” he told The Produce News Aug. 29. “The situation nationwide is trucks are getting tighter, tighter, tighter.” And he added that produce is not a high priority for the nation’s trucking companies.
“Wisconsin is 100 percent trucks,” he said of product movement, adding that rail is not available for potato movement in the Badger State.
Wisconsin is home to a significant canning industry. “That sucks up so many trucks,” he went on to say. “The canners know they’ve got to have a lot of trucks.”
Hurricane Isaac was bearing down on the Gulf Coast Aug. 29, and Mr. Johnson said truckers were stuck in the South, unable to move.
Then there’s the issue of holiday movement. “Labor Day weekend is a tough deal for trucks,” he continued. Logistics are equally challenging during the Thanksgiving holiday.
Wisconsin’s acreage devoted to potato production has remained relatively stable. “Sometimes the mix [of potatoes] changes,” Mr. Johnson said. “But overall acreage has remained the same. You don’t see production levels change a whole lot.”
Mr. Johnson was asked what he’s heard regarding Wisconsin’s potato volume. “It looks like we have a huge crop here,” he replied. “Size and tonnage will be pretty big this season.” He said storages are already rented out, another indicator of potentially big things to come.
Russet movement began in July, two full weeks ahead of typical timetables. “I’ve been in this business since 1971,” he stated. “I’ve never seen this.”
Despite the earlier production window, Mr. Johnson said this will not translate to increased sales volume. He said buyers were setting up ads for other commodities — such as fruit — and were not anticipating earlier supplies of potatoes. “At the end of the Labor Day holiday, we won’t have moved any more potatoes than normal,” Mr. Johnson said of the situation.
National potato production increased this season. With an oversupplied market, prices are depressed. “Prices are dramatically lower than they were two weeks ago, two days ago,” Mr. Johnson commented. “When storages fill, it’s very difficult to get the prices back up.”
As for grower return on investment, Mr. Johnson characterized the situation this way: “It’s going to be an interesting challenge to market this crop to give the growers profitability.”