Potandon-Murakami partnership to boost marketing opportunities
Potandon-Murakami partnership to boost marketing opportunities
In a joint announcement made Jan. 2, Potandon Produce and Murakami Produce Co. said their new partnership is projected to strengthen the supply base of both companies and expand marketing opportunities.
Idaho Falls, ID-based Potandon is the exclusive marketer of "Green Giant Fresh" brand potatoes and onions in North America and for Sunspiced potatoes. The company occupies a position as market share leader in Idaho with over 35,000 dedicated acres and garners 10 percent of market share in the United States.
Murakami Produce, located in Ontario, OR, markets onions for more than 40 growers and is the largest-volume shipper in the Idaho-eastern Oregon onion region.
Idaho-eastern Oregon produces approximately 40 percent of overall domestic onion supplies from September through March and is the only storage onion region in the United States governed by a federal marketing order.
Potandon Chief Operating Officer Steve Ottum said that the partnership offers mutual benefits for both companies as it solidifies an important business venture.
"We have worked with Murakami for a number of years," Mr. Ottum told The Produce News. "It really cements the relationship."
Under the terms of the partnership, Potandon will take over sales operations for both companies and bring Murakami sales and customer service employees under its umbrella. The agreement allowed Murakami to acquire an ownership interest in Potandon.
Mr. Ottum said that the partnership brings additional companies into the fold and expands available product acreage.
"Both companies will work with a more flexible supply base," said Mr. Ottum, who added that this is expected to be important as the companies address fluctuating market conditions and ensure a stable supply of quality product to consumers at all levels. A natural byproduct of the new partnership is assurance of better price stability for its growers.
In the short term, Mr. Ottum said that he expects very few changes to be made. "It will be business as usual right now," he said.
Long-range forecasts are for shifts in marketing strategies as the partnership matures. "We will continue to grow both the potato category and onion category," Mr. Ottum said. The partnership is expected to provide both Potandon and Murakami with year-round marketing opportunities in both categories.
Idaho Falls, ID-based Potandon is the exclusive marketer of "Green Giant Fresh" brand potatoes and onions in North America and for Sunspiced potatoes. The company occupies a position as market share leader in Idaho with over 35,000 dedicated acres and garners 10 percent of market share in the United States.
Murakami Produce, located in Ontario, OR, markets onions for more than 40 growers and is the largest-volume shipper in the Idaho-eastern Oregon onion region.
Idaho-eastern Oregon produces approximately 40 percent of overall domestic onion supplies from September through March and is the only storage onion region in the United States governed by a federal marketing order.
Potandon Chief Operating Officer Steve Ottum said that the partnership offers mutual benefits for both companies as it solidifies an important business venture.
"We have worked with Murakami for a number of years," Mr. Ottum told The Produce News. "It really cements the relationship."
Under the terms of the partnership, Potandon will take over sales operations for both companies and bring Murakami sales and customer service employees under its umbrella. The agreement allowed Murakami to acquire an ownership interest in Potandon.
Mr. Ottum said that the partnership brings additional companies into the fold and expands available product acreage.
"Both companies will work with a more flexible supply base," said Mr. Ottum, who added that this is expected to be important as the companies address fluctuating market conditions and ensure a stable supply of quality product to consumers at all levels. A natural byproduct of the new partnership is assurance of better price stability for its growers.
In the short term, Mr. Ottum said that he expects very few changes to be made. "It will be business as usual right now," he said.
Long-range forecasts are for shifts in marketing strategies as the partnership matures. "We will continue to grow both the potato category and onion category," Mr. Ottum said. The partnership is expected to provide both Potandon and Murakami with year-round marketing opportunities in both categories.
