OUTLOOK, Sask. – There’s a quiet boom in the Saskatchewan seed potato business.
And while it’s a boom generated by only 30 growers, people in the industry think Saskatchewan’s mixture of relatively cheap land and water as well as good growing conditions mean there is lots of room for more.
“The future is so bright we have to wear sunglasses,” jokes Outlook seed potato grower John Konst.
“”But you have to know what you’re doing,” he’s quick to add. “Don’t jump in it. Walk into it.”
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The Saskatchewan seed potato industry may seem insignificant compared to the province’s big agricultural picture, but while it is small, the growth is large. In 1990 there were only nine growers. Now there are 30. Acreage is increasing and growers and the provincial government hope to continue that trend.
Konst began growing seed potatoes in Saskatchewan because of the relatively cheap land and water. That, combined with the province’s low disease levels and the “northern vigor” phenomenon, made the Canadian prairies a better place than his native Netherlands to set up a seed potato operation.
Healthy profit margin
Konst grows about 60 acres of seed potatoes on land near Lake Diefenbaker, where most of the province’s growers are concentrated. He said the Saskatchewan average is about 27 acres per grower. But while that acreage may seem tiny compared to any reasonably-sized grain operation, the returns on potatoes are much higher and provide a healthy profit – if the grower knows what he is doing, Konst said.
“If you’re not going to educate yourself, stay in the wheat business,” said Konst, who pointed out that potato growing needs an entirely new line of equipment and demands different farming practices.
It’s also expensive. One expert estimates the start-up costs of a 350-400 acre potato operation at more than $1 million – and that is with used equipment.
But even more daunting than the price tag of getting into the business is the intellectual hurdle dryland cereal farmers will have to jump.
“You don’t market this stuff to the wheat board any more,” said Laurie Tollefson, of the Irrigation Development Centre in Outlook. “You have to create your own markets.”
Tollefson said this emphasis on marketing means the seed potato industry in Saskatchewan will probably be built by young farmers.
“It takes younger people with energy and drive, a bit of entrepreneurial spirit, not necessarily your 60-year-old grain farmer,” he said.
Both Konst and Tollefson said grain farmers need a transition period to get into seed potatoes. Konst said farmers can educate themselves through meetings organized by industry groups or by talking to potato producers.
By starting out with a small acreage and slowly expanding, producers can get into the business and build up their knowledge without incurring massive costs right off the top.
Konst said he hopes high grain prices don’t distract farmers from diversifying into non-traditional crops such as seed potatoes.
“It’s the easy way out,” he said.
