Ron Budd: Good quality and demand for New Jersey potatoes

The 2022 New Jersey potato season has been characterized by good growing conditions, good yields, good quality and good pricing, according to Ron Budd, vice president of Gloucester County Packing Corp. in Woodbury, NJ.

“Up until early July, we had near-perfect growing conditions, an ample amount of rain and cool nights, which potatoes like,” Budd said Friday morning, Aug. 12. “But then in mid-July it turned hot and dry, but it didn’t really affect potato growers as much because they all have irrigation and were able to finish off the crop nicely.”

He added, “We started red and white potatoes on July 18; the russet and yellow varieties started the week of August 1. Our growers have really experienced a rare combination of slightly above-average yields and prices substantially above average.”

Movement has been “good on the white and yellow varieties and excellent on the russet and red varieties,” he said.

In New Jersey, “We usually have Russet potatoes until October 1,” he said. “This year we’ll finish russets by the end of August. Demand has been very good. The demand on all the varieties has been better than normal,” but the demand for russets “is just off the charts.”

Regarding quality of Jersey potatoes generally this year, Budd said that “even though we’ve had some heat, the quality has remained good. And that’s because we haven’t had much rain. The potatoes can take some heat, they can take some rain. But you put rain and heat together, and that’s when you get quality issues. They can take one or the other, but the combination of both is dangerous.”

Gloucester County Packing Corp. does not grow any product itself, but its 45,000-square-foot facility packs, distributes and handles potatoes and onions from all over the United States and beyond. But with headquarters in the Garden State, Jersey potatoes hold a special significance.

“The ‘Jersey Fresh’ brand complements retailers’ Jersey Fresh theme,” he said. And demand for ‘Jersey Fresh’ has been slightly better than normal.”

Asked if he was experiencing any supply chain issues, Budd replied that he was not having issues regarding sourcing of product, but “we had increased lead times to get packaging materials — bags specifically.” On the costs, “We’ve had two increases here since the first of the year. The packaging materials’ cost is up 20 percent this year.”

He continued, “Packaging material is only one of the things we’ve seen increase in cost. Our labor costs have increased as the state minimum wage has increased.” The cost of fertilizer and chemicals has increased, too, he said. “Fortunately, the market has covered those additional expenses.”

The company executive reflected on the season at this point in time. “It’s been a fun year,” he said. “The growers are happy with their yields and returns. We’re extremely happy with the over all demand for our products. And the retailers have been very happy with the quality.”

He continued, “I relate it to a chain. If any one of those links is broken, there’s a problem. If the retailer is not happy with the quality, he’s not going to buy our product. If the grower’s not happy with the returns, he’s not going to grow potatoes next year. If I don’t have the volume of potatoes, I’m going to look to do something else. So it’s a rare combination that everything is working well.”

He concluded, “The stars are definitely aligned in the potato industry.”

Photo: John Coombs of Coombs Sod Farm in Shirley, NJ, one of Gloucester County Packing Corp.'s sources for potatoes, shown grading some New Jersey white potatoes.