Kern County down in russet potatoes, up in Yukon Golds
Kern County down in russet potatoes, up in Yukon Golds
New potato acreage has reversed course in California's Kern County, dropping from 9,268 acres in 2007 to 8,362 in 2008, a decline of nearly 10 percent, according to published data from the Kern County Department of Agriculture.
The figures exclude the Kern County Department of Agriculture's category for "chippers," or potato chips, a category that is not used in the calculations by the Kern County Shippers Association. Also, one major Kern County packingshed does not publicly release its acreage and therefore is not included in the totals.
The 2007 season had marked a one-year turnaround when acreage increased nearly 6 percent over 2006 acreage (8,654), halting what had been a steady year-over-year decline in acreage dating back to 2003.
According to published data from the Kern County Department of Agriculture, the county's reported potato acreage was 8,842 for 2005, 10,922 for 2004 and 11,630 for 2003. Compared to the 2003 acreage, the 2005 acreage reflects a drop of nearly a quarter of the county's acreage.
The 2006 data included the loss of acreage from Bakersfield, CA-based D.M. Camp & Sons, once prominent in the Kern County deal. D.M. Camp & Sons has not had potato acreage in production since the 2005 reporting season. That took roughly 700-800 acres of whites, reds and Yukon potato varieties out of spring-summer potato production in Kern County.
The Kern County spring-summer potato deal runs from May through July with no potato storage. By definition, new potatoes are freshly harvested, thin- skinned potatoes of any variety that have never been stored.
Kern County has experienced increasing pressure on white potatoes from competing states, resulting in a dwindling of the county's white potato acreage that has persisted for a number of years. According to data from the Kern County Department of Agriculture, white potato acreage for 2008 is 1,679, compared with 1,826 acres for 2007, 1,932 in 2006, 2,531 in 2005 and 2,784 in 2004.
California faces its stiffest competition from Wisconsin, Idaho, Oregon, Washington and Maine, but competition exists from numerous other states as well, such as Arizona, with reds, whites and golds.
Kern County's most pronounced drop in acreage from 2007 to 2008 was its russet potatoes. In 2008, russet potato acreage is 3,292 compared with 4,030 acres in 2007, which is more than an 18 percent drop.
Pete Thorne, whose Bakersfield-based Kern River Produce serves as the sales and marketing arm for C. Handel & Sons, said that financial pressures have not abated for Kern County's potato operations.
"Fuel and fertilizer costs are increasing," Mr. Thorne said. "Last year was a difficult market that ran later into the season."
The trick is to get the acreage out in an orderly fashion, but last year was hot and the market was sluggish, Mr. Thorne said.
The cost of freight for shipping product continues to be a major factor in the health of the Kern County potato deal. High transportation costs make shipping to markets east of the Mississippi River increasingly challenging and suggests that the trend for growers in Kern County will be to grow less potato acreage. About two-thirds of potatoes grown in California are shipped out of state.
"Diesel is $4.25 a gallon, and that will affect the cost of everything," Mr. Thorne said. Union Pacific, one of the larger railroad operators in North America, has yet to release its newest rate schedule that will affect C. Handel & Sons and others in the Kern County potato deal.
The buyer pays the freight bill, but it reflects what Kern County potato growers can get for their crop.
C. Handel & Sons has increased its Yukon Gold acreage this year, which is in line with Kern County's slight increase in Yukon Gold acreage to 1,431 in 2008 compared with 1,365 in 2007.
Tom Franconi Jr., a salesperson with Mazzei-Franconi Co. LLC in Bakersfield, CA, said that the company has Yukon Gold, white, red and russet potatoes. "We're down from 1,400 acres on russets in 2007 to 855 acres," Mr. Franconi said. "It's the right number we can run through the shed."
Mazzei-Franconi's red potato acreage for 2008 is 266, compared with 300 acres in 2007. Its white potato acreage is up slightly to 330 acres in 2008, compared with 320 acres in 2007. Mr. Franconi attributed the increase to the popularity of the Avalanche white variety, a bright white potato that holds its color well.
Mazzei-Franconi's Yukon Gold acreage jumped from 125 acres in 2007 to 144 acres in 2008.
Lee Frankel, president and chief executive officer of Salt Lake City-based United Potato Growers of America, said that russet potatoes have declined in Kern County because the county's growers are rational. "They try to meet realistic levels of customer demand," Mr. Frankel said. "Russet varieties in the Northwest store well. There's not much distinction [from new potatoes]."
The financial returns to growers in the last few years have not been great. Add the high cost of land rents, and the result is a recipe for declining potato acreage, he said.
But Mr. Frankel also said that this year is shaping up to be a good year for Kern County potato growers because they may be able to "maintain momentum that the industry has built up." He added, "Some markets are in balance, and that should be good for Kern County."
The figures exclude the Kern County Department of Agriculture's category for "chippers," or potato chips, a category that is not used in the calculations by the Kern County Shippers Association. Also, one major Kern County packingshed does not publicly release its acreage and therefore is not included in the totals.
The 2007 season had marked a one-year turnaround when acreage increased nearly 6 percent over 2006 acreage (8,654), halting what had been a steady year-over-year decline in acreage dating back to 2003.
According to published data from the Kern County Department of Agriculture, the county's reported potato acreage was 8,842 for 2005, 10,922 for 2004 and 11,630 for 2003. Compared to the 2003 acreage, the 2005 acreage reflects a drop of nearly a quarter of the county's acreage.
The 2006 data included the loss of acreage from Bakersfield, CA-based D.M. Camp & Sons, once prominent in the Kern County deal. D.M. Camp & Sons has not had potato acreage in production since the 2005 reporting season. That took roughly 700-800 acres of whites, reds and Yukon potato varieties out of spring-summer potato production in Kern County.
The Kern County spring-summer potato deal runs from May through July with no potato storage. By definition, new potatoes are freshly harvested, thin- skinned potatoes of any variety that have never been stored.
Kern County has experienced increasing pressure on white potatoes from competing states, resulting in a dwindling of the county's white potato acreage that has persisted for a number of years. According to data from the Kern County Department of Agriculture, white potato acreage for 2008 is 1,679, compared with 1,826 acres for 2007, 1,932 in 2006, 2,531 in 2005 and 2,784 in 2004.
California faces its stiffest competition from Wisconsin, Idaho, Oregon, Washington and Maine, but competition exists from numerous other states as well, such as Arizona, with reds, whites and golds.
Kern County's most pronounced drop in acreage from 2007 to 2008 was its russet potatoes. In 2008, russet potato acreage is 3,292 compared with 4,030 acres in 2007, which is more than an 18 percent drop.
Pete Thorne, whose Bakersfield-based Kern River Produce serves as the sales and marketing arm for C. Handel & Sons, said that financial pressures have not abated for Kern County's potato operations.
"Fuel and fertilizer costs are increasing," Mr. Thorne said. "Last year was a difficult market that ran later into the season."
The trick is to get the acreage out in an orderly fashion, but last year was hot and the market was sluggish, Mr. Thorne said.
The cost of freight for shipping product continues to be a major factor in the health of the Kern County potato deal. High transportation costs make shipping to markets east of the Mississippi River increasingly challenging and suggests that the trend for growers in Kern County will be to grow less potato acreage. About two-thirds of potatoes grown in California are shipped out of state.
"Diesel is $4.25 a gallon, and that will affect the cost of everything," Mr. Thorne said. Union Pacific, one of the larger railroad operators in North America, has yet to release its newest rate schedule that will affect C. Handel & Sons and others in the Kern County potato deal.
The buyer pays the freight bill, but it reflects what Kern County potato growers can get for their crop.
C. Handel & Sons has increased its Yukon Gold acreage this year, which is in line with Kern County's slight increase in Yukon Gold acreage to 1,431 in 2008 compared with 1,365 in 2007.
Tom Franconi Jr., a salesperson with Mazzei-Franconi Co. LLC in Bakersfield, CA, said that the company has Yukon Gold, white, red and russet potatoes. "We're down from 1,400 acres on russets in 2007 to 855 acres," Mr. Franconi said. "It's the right number we can run through the shed."
Mazzei-Franconi's red potato acreage for 2008 is 266, compared with 300 acres in 2007. Its white potato acreage is up slightly to 330 acres in 2008, compared with 320 acres in 2007. Mr. Franconi attributed the increase to the popularity of the Avalanche white variety, a bright white potato that holds its color well.
Mazzei-Franconi's Yukon Gold acreage jumped from 125 acres in 2007 to 144 acres in 2008.
Lee Frankel, president and chief executive officer of Salt Lake City-based United Potato Growers of America, said that russet potatoes have declined in Kern County because the county's growers are rational. "They try to meet realistic levels of customer demand," Mr. Frankel said. "Russet varieties in the Northwest store well. There's not much distinction [from new potatoes]."
The financial returns to growers in the last few years have not been great. Add the high cost of land rents, and the result is a recipe for declining potato acreage, he said.
But Mr. Frankel also said that this year is shaping up to be a good year for Kern County potato growers because they may be able to "maintain momentum that the industry has built up." He added, "Some markets are in balance, and that should be good for Kern County."
