M A R C H 2 0 1 8 10 POTATO GROWER 2018 International Crop Expo by Willem Schrage The International Crop Expo was held February 21st and 22 at the Alerus Center in Grand Forks, North Dakota. As tradition has it, interested growers and other members of the potato indus- try had access to an educational pro- gram in the mornings on a variety of programs concerning many aspects of the potato crop. Speakers came from North Dakota, Minnesota and several other states. The first speaker was Mr. Mark Klompien of the United Potato Growers of America. In his “2018 Potato Market Update & RRV Information”, he men- tioned the incredible increase in yellow flesh potatoes from the Red River Valley area. “Despite the increase there have still been fair returns”, Mr. Klompien said. He was wondering when the sup- ply would reach a level where an increase in supply would result in a decrease in return as we see in other cat- egories. In the red potato sector, the results have been more stable than before. Mr. Klompien mentioned the Minneapolis Red-Potato Market Strategy. He contin- ued by saying that when coordination between suppliers results in supporting each other in the red potato supply the result may well be a fairer return to the producers. There was a big drop in supply of russets resulting in better returns. “The UPGA should be seen as a tool to better plan potato supply,” Mr. Klompien conclud- ed. Ms. Rachael Lynch, Global Marketing Manager of Potatoes USA gave her report on “Marketing Trends That Are Shaping Potato Marketing”. She indicat- ed that the total demand for potatoes is growing in the U.S. market. The per- centage of potato sales that go through foodservice keeps increasing as more meals are eaten out of home. This is true for all potato products and forms. It does not mean that retail is dying, in fact, potato sales at retail are expanding, it just means that foodservice is growing faster. Given the explosion of new and alternative foods, from quinoa to sweet potatoes to ancient grains, it is impres- sive that America’s favorite vegetable is still #1. Potatoes are not only America’s favorite vegetable, they are served most frequently. Exports are up but slowing due to a competitive supply from Europe. The challenge to the US is to take advantage of the growing potato consumption in the world. Mr. Blair Richardson, President and CEO of Potatoes USA, expressed his apprecia- tion for the support of the growers. He mentioned that the potato industry has donated over 1 million dollars for salad bars across the country. A 12% increase on seven billion meals was important. He was glad to note the perception is changing. He stated the promotion strategy of the board is changing from defensive to affirmative. From “it is OK to eat potatoes” to “One should eat more potatoes, because they are good for you”. Trends in food services show that the rock star is potatoes. They use potatoes in so many ways while reduc- ing the price of their plates. He expects to see positive developments in trends and nutrition. Seed potato market trials were mentioned. One fifth of all US potatoes end up in the international markets. Demand for potatoes increased in the world. John Keeling, Executive Vice President and CEO of the National Potato Council mentioned that the NPC was founded in 1947 to get growers together to form a unified industry point of view. “We are a year into the most unique administration,” he said. The role-back of regulations, especially EPA, has been good for agriculture. The withdrawal from trade agreements is not good for an industry that depends heavily in international trade. Mr. Keeling would like to see there be no harm, but the expressed preference for bilateral negoti- ations has resulted in pulling out of the TPP without any bilateral negotiations taking place with any of the TPP coun- tries. With reference to the budget, Mr. Keeling indicated that Congress may undo presidential cuts. However, the agencies still have to deal with the pos- sibility of budget cuts. Transportation problems were men- tioned. The reduction in available driv- ing hours was with us for five years now, but the electronic devises have made it much more urgent. It makes transporta- tion more difficult and expensive. States should have more conformity in allow- ing the 150 mile exemption for agricul- ture. The NPC is asking for 2 years delay. Specialty grants programs have been good for our research in this area. We may see that maintained at a certain level.