Pricing and movement down, but Lundgren takes high road
Pricing and movement down, but Lundgren takes high road
Tom Lundgren, president and owner of Spud City Sales LLC in Stevens Point, WI, said he is watching the market closely for signs that potato movement will pick up and pricing will improve. “Movement has been sluggish,” he told The Produce News Aug. 23. “The red market was decent at the beginning. But prices started to fall right after the first shipments.”
The scenario is also similar for russets. “It’s a supply-and-demand game,” he observed, adding that overproduction of potatoes this season has depressed pricing.
Despite these conditions, Mr. Lundgren said the potato crop is one of outstanding quality. “I always remain optimistic this thing will turn around, and we will have a good season.”
Spud City Sales markets russets, reds, yellows and whites. Although growing regions experienced minimal rainfall, potato quality is high. “The crop we’re having here is record to above record this year,” he noted. “There will be plenty of supply out there.”
Mr. Lundgren said red movement started the third week of July, a week to 10 days ahead of typical timing. He expects reds will be available through March or April. Supplies of russets and yellows are anticipated to be available through early to mid-summer.
Spud City Sales and its principals have 50 years of experience under its collective corporate belt. A customer-driven business, the company is one of the nation’s leading procurement and marketing companies of potatoes and onions, and is a premium “Dole” label shipper. Customers can take advantage of individualized services, including year-round procurement, private-label packing, personalized product inspections, contract pricing, logistics and inventory replenishment programs. The staff also works with its customers in the area of food safety and compliance. Spud City Sales can develop potato and onion category management programs tailored to customers’ needs upon request.
Spud City Sales offers a host of packing options, including bulk washed totes to cartons and smaller consumer packs. The majority of the Wisconsin crop is marketed east of the Mississippi. In all, he went on to say Spud City Sales is targeting a volume movement of 1,500 truckloads of potatoes into the pipeline this season.