Jim Ehrlich, executive director of the Colorado Potato Administrative Committee based in Monte Vista, CO, said in early April that that low market prices and water restrictions will result in fewer potato acres in the San Luis Valley this year.

Water has become the largest issue farmers in the Centennial State face, but Mr. Ehrlich said growers in the region are looking at drip irrigation as an alternative to the traditional center pivot. Water is a precious and scarce commodity in Colorado as drought conditions continue to plague not only farmers and ranchers but also municipalities. (Photo by Kathleen Thomas Gaspar)Two entities, Farm Fresh Direct America in Monte Vista and Skyline Potato Co. in Center, are participating in a demo of the irrigation method, he said.

Leading up to the new crop's planting, Colorado growers were shipping fewer spuds than at the same time in 2012. Lower production showed up in the March year-to-date figures, which indicated that 21,069 loads had gone out, compared to 22,754 reported for March 2012. The f.o.b. prices for March 2013 were significantly lower for U.S. No. 1 size A in all russets, which brought $4.81 per carton, the lowest since 2010. In 2012 the price was $8.52 per carton. Yellows in No. 5packages were slightly higher, but bulk russets were off by 50 percent -- $4.87 this year compared to $10.97 last season.

"There is big acreage in the Pacific Northwest," Mr. Ehrlich said of market conditions.

He noted that recent approval for his state to ship potatoes into Taiwan took 10 years of negotiations by the U.S. Potato Board and the National Potato Council with the Council of Agriculture in Taiwan. Mr. Ehrlich said the approval, which has also been given to Oregon, Idaho, Washington, Montana and Alaska, will not likely result in big returns for San Luis Valley shippers, but it will have a positive effect on any future negotiations.

"I don't think we will ship large amounts of potatoes to Taiwan," Mr. Ehrlich said. "Our opportunities are more along the Gulf Coast and in Latin America, but I am encouraged that we were able to get the approval to go into Taiwan," he said.

From the shipper standpoint, the potato market was showing improvement in April as other potato-producing areas in the nation began cleaning up and Colorado's storage spuds made their way to market. One San Luis Valley shipper said early April had signs of "stability for the first time all year."

Trampas McCormick, sales coordinator for Worley & McCormick near Monte Vista, CO, told The Produce News that 2013 had been "a wacky year," with Nebraska and Wisconsin running spuds later than normal.

"But we've seen good promotions by the big retailers," he said, noting that many stores have run jumbo ads for big spuds.

"They've also been heavier into bins than we've seen before," he said.

Colorado as an area saw a short crop in 2012, but W&M will have storage stock through mid-August when it will begin running new crop. Mr. McCormick said that the primary growers do not have plans to reduce acreage in 2013, although the San Luis Valley expects to see upwards of 10 percent of potato acreage cut this year.

In Center, Aspen Produce farm manager Jed Ellithorpe said the operation is looking forward to continued growth in its Mexican sales. Commenting on the recent opening of Taiwan markets to Colorado, Mr. Ellithorpe said, "Logistically we would have to jump over Washington and other Western states, but that doesn't mean we shouldn't look at its potential."

Aspen will run 365 days if supplies last, and Mr. Ellithorpe said, "From here on out our demand should increase incrementally through the start of the new crop."

Colorado's short supplies are "a good thing," he said, and he said that as other areas wind down, "we will get a boost. Our weather is conducive to good storability, and we can provide a good product."