Low-carb, High Hopes

Co-op’s slimmed-down, SunLite tubers
may beef-up Florida’s potato industry



By Ellen Boukari
USDA Rural Development/ Florida
Public Affairs Office


ursting with calcium, niacin, iron and Vitamin C, potatoes are one of the world’s great foods. Even potato skins are a good source of fiber. And they can be served in a seemingly inifinite number of ways. It’s not surprising, then, that potatoes have long been America’s most popular vegetable, according to USDA’s Economic Research Service, which reports that the typical American consumes more than 140 pounds of spuds each year.

But for weight-conscious consumers, there is trouble lurking beneath the skin: carbohydrates, and plenty of them. If you subscribe to the notion that fat is the dieter’s friend, carbohydrates — as are found in bread and potatoes — are viewed as dietary offenders. As the low-carb diet trend has taken root, millions of Americans have adopted a low-carbohydrate regimen. That’s resulted in the sale of a lot of meat, but fewer potatoes.

Potato sales have been declining precipitously in the Tri-County agricultural area (St. Johns, Putnam and Flagler counties) of northeast Florida, once known as the Potato Capital of Florida. The number of potato growers here has dwindled from nearly 400 farmers in the early 1970s to fewer than 40 today.

Fighting to regain crown
Five Florida potato growers are seeking to regain lost market share by forming SunFresh of Florida Marketing Cooperative Inc. The members, all sixth-generation Florida potato growers, think that a new variety of lowcarb potatoes they are growing can even help the Tri-County area regain its potato crown. The co-op has been bolstered by technical assistance and a $95,000 Rural Business Enterprise Grant (RBEG) from USDA Rural Development. Also playing a vital role is Chad Hutchinson, an assistant professor of horticulture at the University of Florida’s (UF) Institute of Food and Agricultural Sciences.

Hutchinson has been growing and testing the new potato variety for five years at UF’s Plant Science Research Unit in Hastings, Fla. In 2000, potato farmers and UF scientists began working with Dutch seed company HZPC to develop a better potato — better tasting, better looking and with an increased shelf life. It has 30 percent fewer carbs and higher protein than russet potatoes (the biggest selling variety in the United States). This tuber innovation is already impressing healthconscious consumers and is bringing the potato back to the dinner tables of more people on low-carb diets.

“Growers love this potato,” says Hutchinson. “It is disease resistant, has a shorter growing cycle and is better able to deal with Florida’s extreme weather.”

Co-op growers are hopeful that the new SunLite potato will revive the potato market and turn a profit for them. Joe Mueller, business and cooperative programs director for USDA Rural Development in Florida, provided the co-op with critical help in developing their marketing organization. The RBEG funds from USDA assisted with the initial marketing rollout for the new potato.

The SunFresh co-op has exclusive rights to the potato. As an added benefit, SunLite low-carb potatoes are grown in compliance with a pilot USDA program that provides identity preservation of the crop from the farm to the consumer. Shoppers are thus assured they are getting authentic SunLite™ low-carb potatoes.

Trouble in potato country
While growers are optimistic about the new potato, they also are aware that competition from northern growers will remain tough. The Tri-County potato-growing region consists of about 21,000 acres of unique farmland. The moderate climate allows growers to harvest potatoes early in the year, usually in March and April, sometimes even earlier. Over the years, Mother Nature’s benevolence was a boon to Florida growers, giving them the competitive advantage over cold-weather spud growers.

However, due to new potato storage technology and excess potato production in northern states, growers here can no longer compete by relying solely on the early-to-market growing cycle and the freshness of their product. The number of buyers has dwindled, also contributing to the decline of the Florida potato industry. With little member commitment, another local co-op was not having much luck increasing prices or finding new markets for its members, Mueller notes.

By 2003, Florida’s potato industry was ripe for a positive change. The ground-breaking, low-carb potato was the impetus needed to rally the farmers into a unified group seeking a bigger market presence.

Prior to the formation of SunFresh, there has been little crop differentiation in Florida potatoes had none had a brand identity. Potato marketing has historically been focused on bulk production, with most sales made to manufacturers of the potato chips or French fries. Farmers knew that in order for the low-carb potato to be a success, they would need more than a better potato.

The task was formidable. Instead of focusing solely on growing and harvesting potatoes, the farmers now were tasked with product management, from planting to harvesting, packing, shipping and marketing on a national scale. Seeking advice about how best to bring to fruition the many pieces of the challenging puzzle, farmers and scientists consulted with local agriculture extension agent Edsel Reddon, who in turn called on Mueller at USDA Rural Development for advice.

Co-op: perfect marketing vechicle
While Florida’s potatoes represent only 5 percent of the nation’s crop, they are important to the state, generating more than $120 million in sales annually.

Mueller was convinced that if farmers worked together and had a strategic plan for the future, they could capture more profits with the low-carb potato. The co-op seemed to be the perfect vehicle to take this new potato to the market place.

But given the lackluster performance history of some other cooperatives in the area, it was no easy task to convince growers that a new co-op was the best bet toward making the low-carb potato profitable. Organizing and operating a new co-op would be the true test of commitment and dedication.

Less than 12 months after it was launched, Mueller says SunFresh of Florida Marketing Cooperative “has demonstrated a winning combination of know-how, determination and management skills to handle the myriad of details required, both internally as well as externally.

Marketing campaign
The cooperative is pushing fullsteam ahead with marketing strategies that emphasize the potato’s health benefits. Sunfresh is promoting the SunLite brand as a unique, gourmet potato sure to please the palate and the waistline. The growers also want to market the potato as a fresh vegetable with a brand name and logo, so that shoppers will ask for it in their grocery store.

Given that the potato is smooth skinned, has small eyes and slightly yellow flesh, it offers eye appeal and tempts the tastebuds with its fresh creamy texture. And butter and sour cream are optional, due in part to the potato’s high-moisture content, says Hutchinson.

USDA Rural Development’s RBEG funding was provided to the Floridan Resource Conservation and Development Council, which in turn used the funds to assist the co-op in marshalling marketing activities for the potato. A marketing campaign targeting wholealers, retailers, the food service trade and consumers is in full swing to market SunLite as a premium table potato.

The potatoes hit supermarket shelves in February 2005 as “SunLite All Natural-Low Carb Potatoes.” Sunfresh began its marketing campaign by targeting grocery stores in the southeast, including regional and national chains. With marketing assistance from the Florida Depart-ment of Agriculture and Consumer Services (FDACS), each bag of SunLite lowcarb potatoes brandishes appealing labeling and an eye-catching logo. The marketing strategy is “to sell the sizzle and not the steak,” says Sunfresh Cooperative president and “SunLite” potato farmer Wayne Smith.

Over the past eight months, the low-carb potato has been featured in numerous publications, including coverage on major newswires and network television. Smith said that spending time with reporters and photographers has become somewhat commonplace for him.

Looking ahead
Currently, all grading, packing and shipping is done in the co-op’s St. Augustine facility. The first year’s production of the new variety will come from an estimated 4,000 acres and will triple in the second year, according to Smith. As many as 30,000 acres are projected to be in Sunlite production in three years.

SunFresh cooperative growers also have planted SunLites near Immokalee in south Florida. Flexibility in harvesting and shipping is a distinct advantage as the market moves from the south to the north. And, with multiple growing locations, co-op members believe they are better protected against bad weather, which has besieged Florida growers in recent years.

Smith says that Sunfresh will add additional producer members as demand for the innovative tuber exceeds current member’s capacity. There will also be a need to add production during times when Florida growers have no potatoes to sell. The co-op’s five-year plan calls for spreading production to 10 states and developing six packing and distribution facilities.

If there is a downside to marketing SunLite as a premium table potato, it is the larger percentage of culls — potatoes that don’t pass visual appearance standards. Although culls, or “No. 2s,” are identical in nutritional value to their more visually appealing counterparts, even small surface blemishes result in downgrading. This has spurred the co-op to look into additional markets, such as the school lunch system. As production increases, additional possibilities include a variety of frozen packaged potato products.

The future of Florida’s potato farmers is looking brighter these days, and as USDA Rural Development State Director Charles W. Clemons Sr. said at a press conference last summer: “Not only will the low-carb potato bring desirable options to the American consumer, it will energize Florida’s potato industry with increased market share.” And that’s no small potatoes for Florida’s $120 million industry.

































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