HD .9&5 o NIVERSITY OF OREGON BULLETIN New Series JANUARY, 1915 Vol. XII, No. 5 Markets for Potatoes Markets and Market Conditions. Production. Costs. Prices to Producers. Starch, Alcohol, Stockfood, Flour, and other Industrial Uses of Potatoes. General Information on the Marketing Feature of the Potato In- dustry, in European Countries and the United States, with special ref- erence to the Pacific Coast States and parti ^u- larly Oregon. Issued by the Department of Commercial and Industrial Survey University of Oregon School of Commerce H. B. MILLER, Director (COMPILED BY J. FKEDERir THOKNE) IC-NRLF iblished montMy by the University of Oregon, and entered at the postofffce in Eugene, Oregon, as second-class matter. BOBI'IZWIW Markets for Potatoes Markets and Market Conditions. Production. Costs. . Prices to Producers. Starch, Alcohol, Stockfood, Flour, and other Industrial Uses of Potatoes. General Information on the Marketing Feature of the Potato In- dustry, in European Countries and the United States, with special ref- erence to the Pacific Coast States and particu- larly Oregon. Issued by the Department of Commercial and Industrial Survey University of Oregon School of Commerce H. B. 'CILLER, Director GRAPHIC .ANALYSIS OF POTATO (From "The Potato," by Grubb & Guilford ) ItfARKETS FOR POTATOES 2 .& 7f&9- INDEX / 7 ' PAGE Summary of Salient lA-atur< * . .-..JF~.G... / . 2-5 Authorities quoted 6 General remarks - 6 Production in Foreign Countries and the United States 7-15 Conditions in Pacific Coast States - 15-19 Competition -for Oregon potatoes 20, 21 Data on cost of production 21-26 Market prices 26, 27 Possible markets for Oregon potatoes 27,28 Industrial use of potatoes 28, 29 Starch 29-33 Alcohol 33-35 Dried 35-38 Stock food 38-40 A Suggestion 41 SUMMARY OF SALIENT FEATURES The yearly per capita consumption of potatoes in Germany is 7.3 bushels. In the United States, 2.6 bushels. See page 13. Imports of potatoes into this country now are admitted free of duty. The freight rate on potatoes from Portland to the Atlantic Coast, via the Panama Canal is 30 cents per cwt. It may be of advantage to combine shipments of potatoes with onions. Care should be taken, though, as onions deteriorate quickly, and a recent shipment through the Panama Canal to New York was almost a total loss due to spoiling. See pages 17 and 28. While Oregon may not have starch or other factories for the industrial use of potatoes, this is one of the best states of the Union in which to raise hogs, and converting potatoes into pork generally may be a much more profitable process than starch making, a "plant" that every farmer can have close at home. See pages 28-33. Imports of potatoes into the United States make an investigation of the cost of production and marketing of our crops a very important feature, and a careful study of Tables 2, 3 and the entire chapter on cost data should be of value to the Oregon farmer in demonstrating the competition he must meet and the conditions under which he must meet it. See pages 8, 9, 20-26. Note the comparative prices received by Oregon producers in 1912, 1913 and 1914, as against the other Far Western states and the average for the United States. See pages 10, 20 and 22. In considering the above note also the comparative costs of production as shown by Tables 14 and 15. See pages 22 and 23. At one time the United States supplied the Philippine market with practically all the potatoes used. Now Japan ships large quantities to the Philippines, and practically supplies the entire Asiatic market, driving out the United States from this profitable field. In Germany the profits of the potato crop and the low cost of fertilizers justify the liberal use of them to an extent not practiced in this country. See page 13. Until a surplus above the needs for table purposes is produced, and means provided for disposing of it at a profit to the grower, the present succession of fat and lean years must be expected, and just so long potato growing for market will be a speculative enterprise. See page 13. In competition with the Idaho and Yakima producers, Oregon growers should remember that these districts have lower freight rates to the Southern and Eastern markets, and, generally speaking, a loose sandy soil and climatic condi- tions much superior for potato growing to that in this State. Their cost of production also is lower, as a rule. See pages 16, 20 and 21. MAIN MARKETS FOR POTATOES 3 The world's individual record crop is that produced on the estate of Lord Roseberry, in England, 2,053 bushels per acre, with only 45 bushels of culls. Compared with this the standard of efficiency of the United States is only 4%%. A standard of 500 bushels really is low, and by proper methods, easily might be raised to 1,000 bushels per acre or more. See page 7. O? the potato growing countries of the world the United States stands third from the bottom in yield per acre. See pages 7 and 8. Bermuda potatoes command an average price of $1.44 per bushel in the New York market, owing to their high quality for table use. See Table No. 3, page 9, and page 28. The largest crop is not always worth the most money. See Table No. 5, page 12. Prices to producers in Oregon, May 1, 1913 and 1914, were less than half the average for the United States. See Table No. 26, page 27. Germany leads the world in acreage devoted to potatoes, in total production and average yield per acre, in economy of operation, and in utilization. See page 12. Human consumption of potatoes in Germany averages over 440 pounds per capita per annum. See pages 12 and 13. Growers of seed potatoes in Germany are given one-half the regular freight rates on the government railroads. See page 12. The average wholesale price in cities, for 10 years, in Germany, was 23.67 cents per bushel. In Chicago for the same period, 56 cents. See page 13. In Germany the potatoes raised for industrial purposes are marketed for about one-third less than table potatoes. See page 13. Germans plant over 24 bushels of seed potatoes to the acre, and in some cases as high as 35 bushels. See page 13. When the markets in Germany are over-supplied the Germans do not talk of reducing production, but of finding some new outlet for the surplus. See page 13. Germany maintains a long rotation between potato crops on the same ground, three to seven years between crops. See page 13. Germany has solved the problem of supplying a nation with this important foodstuff at a reasonable price regardless of annual variations of yield. The price iluctuation there in five years was only 27 cents per bushel against $1.34 in Chicago. 'See page 13. German production in 1914 averaged over a ton for every person in the Empire. See page 8. Until a surplus above the needs for table use is produced in this country, and means provided for disposing of it at a profit to the grower, the present succession of fat and lean years must be expected, and just so long potato growing for market will be a speculative enterprise in the United States. See page 13. It is possible that South America offers a good market for Oregon potatoes. Se'e'page 28. Where corn can be grown economically, it is better for stock-feeding than potatoes, and a cheaper source of starch, glucose, alcohol, etc. See pages 29, 31 and 33. The average European farm laborer gets 39 to 49 cents a day for his labor, without board. See page 15. Utah is in need of good seed potatoes. See page 17. In 1911, Idaho shipped all her surplus crop to 32 states of the Union. See page 10. Prices in Washington rarely go below $10.00 a ton in carload lots. See page 16. Hill selection of seed means higher quantity, quality, and price. See page 19. A thorough and exact system of cost keeping is an all important feature of profitable potato marketing. If the grower does not know what his potatoes cost him per bushel, how is he to determine whether ;t is a profitable crop for him to raise or not? See pages 21 to 26. It is the starch content of the potato that gives its f no 1 and industrial values. SI-M> page 28. 48366 MARKETS FOR POTATOES Quantity of starch in potatoes varies from 10 to 20%. See pages 28, 31. There is little encouragement for the building of plants for the industrial utilization of potatoes in the United States on a scale comparable with that in Germany until some change in agricultural conditions gives the manufacturer a cheaper raw material. See page 28. The margin of profit in manufacturing starch, alcohol, etc., from potatoes is very small. See page 28. Maine manufactures over 80% of the potato starch made in the United States. See pages 29 and 30. The price received for potato-starch is, roughly, a little less than twice as much as the cost of the potatoes used. See page 30. In Germany potatoes particularly rich in starch are grown especially for the starch industry. See page 31. Average starch content of Oregon potatoes is 19.4% ; of California 15.2%. See page 31. One hundred pounds of potatoes will yield about 16 pounds of starch. See page 31. It costs to build a starch factory all the way from $8,000.00 to $60,000.00. See pages 32 and 33. Not more than 25 cents per bushel can be paid for potatoes for the manu- facture of starch, profitably. See pages 32 and 33. Potato-starch is delivered to cotton mills in New England for 3*4 cents to :;% cents per pound. Foreign starch can be landed in Boston for from 3 to 3% cents per pound. See pages 32 and 33. Maine pays 15 to 30 cents per hundred weight for culls for starch making. Sec page 32. Five starch factories in Minnesota were sold for junk on account of lack of profit. See page 32. The market price for potato-starch is controlled by the price of corn-starch, l l / 2 times the latter is the rule. See page 33. Approximately 10 pounds of industrial alcohol can be made from 100 pounds of potatoes. Potatoes will have to be produced for at least 15 cents per bushel to compete with Indian corn for alcohol manufacture. See page 33. German authorities consider their dried potato product to have a feeding value for stock equivalent to 80% of that of American corn. See page 39. Four tons of fresh potatoes make one ton of dried. See page 36. 19,000,000 swine are supported by potato feed in Germany. See page 39. Plant for drying 10,000 tons of potatoes costs about $18,000.00. For a small farm-plant about $2,400.00. See page 3.". Dried potatoes are not in competition with the fresh. See page 36. In 1910 more than 12,000,000 bushels of potatoes were dried in German factories. See page 36. Cooperative associations and industrial plants may solve the marketing problem. See page 41. The comparative values of potatoes for various purposes may be summed up as follows, taking 60 cents per bushel as an average farm price paid for table use : Value for seed 90 cents per bushel Value for table use 60 cents per bushel Value for starch manufacture 25 cents per bushel Value for stock food 20 cents per bushel Value for alcohol manufacture 15 cents per bushel Value for flour 12.5 cents per bushel The average price paid in Germany for potatoes for industrial use is 18.3 cents per bushel. See page 34. The total potato crop of Great Britain and Ireland is less than the number of bushels used for seed alone by Germany. See page 8. Over one-fifth of the world's crop of potatoes is grown in Germany. See page 8. It is in the methods of culture and utilization, rather than soil conditions, that the United States falls behind other countries. See page 14. MARKETS FOR POTATOES Wages for farm labor in Germany averages 39 to 49 cents per day, without board. See page 15. One-half to two-thirds of the money paid by the consumer never reaches the farmer. See page 15. Foreign returns per acre are high, but per worker are low. See page 15. Much of the seed used in California is imported from Oregon. See page 16. Oregon's most serious competition in the potato markets is from Idaho. See pages 20, 21. Quality is everything in the potato business. It pays to grade potatoes as carefully as are apples. Appearance is a great aid in marketing. See pages 17, 18 and 19. The least profitable price to the grower for seed potatoes is 60 cents per bushel. See page 17. Packing in crates is advisable for long distance shipments. See pages 18 and 28. Oregon has no local market of moment. See page 18. Proper ventilation for storage bins is important. See page 18. Of the Oregon crop 25 to 35 per cent is culls. It should not be over 15 per cent. See page 18. A thousand farmers have grown rich raising potatoes in New York by maintaining quality. See page 19. Freight rates are a most important consideration. See pages 10 and 14. An example of thorough cost keeping data that could well be followed by other growers. See page 24. Dealers in New Orleans will be glad to get in correspondence with possible shippers from Oregon. See page 28. The cooler the soil the greater the starch content of potatoes. See page 29. It is impracticable to ship "green starch" to a central dryer. See page 33. If the coast districts of Oregon produce 500 to 600 bushels of potatoes to the acre, as is claimed, then that is where a starch factory should be located in the State, if at all. See page 33. Potatoes have a higher percentage of alcohol than other root crops. See page 33. The industrial utilization of potatoes has not been established in the United States for several reasons. See page 29. Germans have found cooperative industrial plants profitable. See page 34. Distillation of alcohol from potatoes has been of benefit to farmers in Switzerland. See page 35. Manufacture of unpressed potato meal costs, in Germany, about 56 cents per ton. See page 36. The Netherlands used over 800,000 tons of potatoes annually for industrial purposes. See page 36. The United States Agricultural Department is experimenting with wheat flour mixed with potato and other flours to determine their relative values. See page 37. An acre of potatoes yields ten or more times as much food material as one planted to wheat, rye or peas, but the food value, per pound, is very much less. See page 39. Care should be taken in the amounts of potatoes fed to stock. See page 39. Ensilage of potatoes with clover, corn, etc., have proven satisfactory. See page 40. Potatoes as stockfood are worth about one-fifth of cornmeal, but are of added value as a succulent. See page 40. MARKETS FOR POTATOES AUTHORITIES QUOTED As far as possible credit has been given in every case to the sources from which the information in this bulletin has been drawn. These sources are indi- cated by the bracketed letters as (a) corresponding with the following list of authorities, unless otherwise stated. Where such source is not specifically given the facts are the concensus of statements made by more than one and condensed for the sake of brevity : (a) United States Department of Agriculture, (b) United States Department of Commerce and Labor, (c) United States Consular Reports. (d) Year Book, 1913, United States Department of Agriculture, (e) Oregon Agricultural College, Bulletin No. 121, by Prof. H. D. Scudder, Professor of Agronomy. ( f ) Special Consular Report No. 64, "Utilization of Potatoes in Europe," by Robert D. Skinner, Consul-General at Hamburg, Germany, Department of Commerce, 1914. (g) Bulletin No. 64, Department Commerce and Labor, Census of Manufactures, 1905, issued 1907. (h) Report by C. C. Moore, Assistant Chemist, Department of Agriculture, (i ) "The Potato," by E. H. Grubb and W. S. Guilford, Doubleday, Page & Co., 1912. (j ) Cornell University Bulletin No. 341. (k) Report by B. H. Warner, Jr., Consul, Leipzig, Germany, August, 1903. (1) Report by Consul General A. M. Thackera, Berlin, 1908. (m) Report by Consul Norton, Chemnitz, Germany, (n) Bulletin No. 47, United States Department of Agriculture, (o) Bulletin No. 81, United States Department of Agriculture, (p) Farmers' Bulletin No. 65, United States Department of Agriculture, (q) Farmers' Bulletin No. 79, United States Department of Agriculture, (r) Farmers' Bulletin No. 268, United States Department of Agriculture, (s) Farmers' Bulletin No. 295, United States Department of Agriculture, (t) Farmers' Bulletin No. 334, United States Department of Agriculture. ( U ) Farmers' Bulletin No. 410, United States Department of Agriculture. ( v ) Farmers' Bulletin No. 570, United States Department of Agriculture. ( w ) Farmers' Bulletin No. 641, United States Department of Agriculture. Acknowledgement for services rendered is due Roy Johnson, '15, U. of O. GENERAL REMARKS The School of Commerce of the University of Oregon has been led to issue this bulletin on the commercial aspects of the potato business by the fact that the vast majority of the farmers of Oregon have met with financial loss and disaster in the marketing of their potato crop for the past three years. It seemed incumbent upon us to attempt to discover a remedy or relief for a commercial situation that is unfortunate and should be unnecessary. That we have tried to do, and trust that the suggestions in the following pages may be of benefit to the potato growers of the State. The interest being manifested in the production of starch and alcohol from potatoes, and their use industrially in other ways, and the number of inquiries addressed to us for information regarding this feature of the industry, induced the investigation which has resulted in the report given herewith. When the need and preparation of this bulletin was conceived a conference was held with the Oregon Agricultural College, as it originally was intended that the two institutions should jointly prepare and issue it, the Oregon Agricultural College to supply all the material in regard to production in Oregon and the agronomy features, with suggestions as to the proper selection of seed, prepara- tion of soil, cultivation, etc. Later it was discovered that the O. A. C*. had collected the material for, and practically was prepared to issue an independent bulletin covering production in Oregon and the problem of potato-starch manu- MARKETS FOR POTATOES facture. Hence it was arranged for each to issue a separate bulletin and by mutual arrangement avoid any duplication of material insofar as was possible and practicable. No attempt, except in a very general way and by inference, will be made herein to deal with the questions of the best methods of growing potatoes, vari- eties, culture, necessary soil and climatic conditions, etc., except as they may directly affect marketing conditions or the price of production, as in the use of fertilizers, irrigation, etc. It is as a commodity of commerce after it is grown that we would deal with the potato. This is not to say that the agricultural features are not equally important, for they are ; nor that they do not affect both cost and value of production, for they do most materially ; but only that there is a broad division between the two elements of the potato business. The Oregon Agricultural College deals with problems of production and in this bulletin we are considering the financial and market feature primarily. ( See O. A. C. Bulletin. ) There is some conflict in figures derived from different sources as answers to the same question very considerable differences in some instances. When these conflicts in authority occur, we have, except when the source is specifically stated, taken the figure that seems to be the most reliable, given the average of all secured, or quoted the various reports separately. PRODUCTION IN FOREIGN COUNTRIES AND IN THE UNITED STATES (a) A comparative statement of the amounts of potatoes produced in the principal potato raising countries and in the several states of this country in 1912, according to the latest world figures available: N. B. This is the largest yield for any single year that is recorded, for the world and also for the United States. TABIVB No. 1. (d) Acreage Planted and Production of Potatoes in Countries Named, 1912 Country Acres Bushels Av. yiHd per acre. Bushels United States Canada 3,711,000 484,000 420,647,000 84,885,000 113.4 175.4 Newfoundland 1,524,000 Mexico 924,000 Argentina 278,000 38,029,000 136.8 Chili 66,000 9,656,000 146.3 Germany 8,257,000 1,844,863,000 223.5 Vustria-Hungary 4,879,000 683,779,000 149.0 France . .. 3,863,000 552,074,000 145.8 United Kingdom 1,208,000 213,783,000 177.0 Netherlands 426,000 121,878,000 286.1 Belgium . .. 387,000 121,481,000 313.9 Italy 712 000 56 313 000 79.0 Russia (European) 13,167,000 1,356,824,000 121.5 Spain 632,000 93,089,000 347.3 Sweden 378,000 65,765,000 173.9 Switzerland 46,712,000 Japan 173,000 25,669,000 148.3 Africa 5 407,000 Australasia 159,000 16,666,000 104.8 Total of above and for world 5,898,531,000 It will be seen from Table No. 1, that the United States stands third from the bottom in yield per acre, that Belgium produces over 200 bushels more per aero than we do, and that Germany doubles our yield per acre. The difference MARKETS FOR POTATOES is even more marked if individual farms in Germany may be used for compar- ison, some of these producing 600 to 1,000 bushels to the acre. The world's individual record crop is that produced on the estate of Lord Roseberry, in England, 2,053 bushels per acre, with only 45 bushels of culls. Compared with this our standard of efficiency is only 4% per cent. A standard of 500 bushels per acre really is low, and, by proper methods, where conditions are favorable, easily might be raised to 1,000 bushels, or more. Note also that Germany, with a total area less than that of Texas, plants about five million more acres than the entire United States. Germany's potato acreage is more than double and the yield more than four times that of the United States. The total crop of Great Britain and Ireland is less than the number of bushels used for seed alone by Germany. Over one-fifth of the world's crop is grown in Germany. The German crop for 1914 exceeded 80 million tons, or over a ton for every man, woman and child in the Empire. The average yield in bushels per acre for a period of nine years, 1903-12, for the principal countries were: United States, 96.0; Russia, 104.6; Hungary. 116.8; France, 129.5; Austria, 152.4; Germany, 196.8; United Kingdom, 202.4. TABLE No. 2. (a) Acreage, Production, Prices, Exports and Imports in the United States, 1901 to 1914 (fiscal years) inclusive. Year Acreage planted and harvested. Acres Average yield per acre. Bushels Production. Bushels Average farm price per but-hel Dec. 1. Cents For fiscal year ending June 30 Ex ports. B labels Imports. Bushels 1901 1902 2,611,000 2,864,000 2,966,000 2,917,000 3,016,000 2,997,000 3,013,000 3,128,000 3,257,000 3,525,000 3,720,000 3,619,000 3,711,000 3,668,000 80.8 65.5 96.0 84.7 110.4 87.0 102.2 95.4 85.7 106.8 93.8 80.9 113.4 90.4 210,927,000 187,598,000 284,633,000 247,128,000 332,830,000 260,741,000 308,038,000 298,262,000 278,985,000 376,537,000 349,032,000 292,737,000 420.647,000 331,525,000 43.1 76.7 47.1 61.4 45.3 61.7 51.1 61.8 70.6 54.9 55.7 79.9 50.5 68.7 741,483 528,484 843,075 484,042 1,163,270 1,000,326 1,530,461 1,203,894 763,651 999,476 2,383,887 1,237,276 2,028,261 371,911 7,656,162 358,505 3,166,581 181,199 1,984.160 176.917 403,952 8,383,966 353,208 218,984 13,734,695 337,230 1903 . 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 Note that the years in Table No. 2 are fiscal and not calendar. The importa- tion for 1912 was the largest in the history of the United States, the next nearest being 1909. The lowest, since 1852, was in 1907. For the calendar year of 1914 the total production was 405,921,000 bushels; value $198,609,000; average yield per acre 109.5 bushels; farm price 48.9 cents per bushel. The average price to producers on July 1, 1914, was 81.5 cents per bushel. MARKETS FOR POTATOES M a 1C _ Dollars r-OOcg OOCO :tOt-CO t TH TH COCO COCOOO CO !> Cg lOOCOOieOCgCgi-iTHCgOOUS rlOS-* -lOirH *! US " TH eg USCg usus os cgrpeg i : i us" : : CO c c ll H QD 1 US Oi O tC ^t-COCO - MOOO5OiOO'J < US-*rH COTJ0 Cg C- CO 03 CO CO J CO US co ^f co oo rH eg 9 n rH *COCOCO Oico OOCOTHTH Tt* oo eg TH TH oo -H TH t- ><* cooo :eo oo os eg co oo : us OS OS TH it- 1I TH^I oiri THCOCO eg us CO MTH TH TH oo ooco TH ;uj Ipl rjHUs cocoTHegcot-cocot-t-t>t-Oius us THto co :us ~ . rt i coco eg oo ^ co os t t us Oi !> TtTco" t- usoi>" us eg oo oios oo : co co"co i eg" COUS !rH CO N "oi t^r-T rl-^t-^OO' CO CO CO rH COOi coto : :TH co eg ' 03 ^ eOCOCO-^CO CO COOOOOCOOOOCg * COrH * OS rf oo tccg t>cooo CO OO t>. 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C f o llll 1^11 O .^ C > W 3,0 c c lill MARKETS FOR POTATOES 11 OOOOUS OlAOOO 000 O O OO O t- WIM^rOOO OOMCC co et~ 0500000 C-OOt- lO OOIT5OOO OTCT..IO lT-( t--OOCCt~ IM i I fO o o in> o tr: o fct? LC oc it r o 10 co OOOOO OOOOO 000 OOOOO OOOOO 000 ooooo ooooo <=>oo_ o o"o"o"oo wtfto"o"o~ O'-M'O" (M0-, : I 1 ctf ^ ^ "3 - r S c > I '" 5 , ? : J ^ cc I 4 CO s e j I I : ~ o v. T-l CO in t> ir > os o in ' sx s* c- co co in 1} 2 ** OS t- t- t 1 co 1 a g -i '' CC 2 without 3 ^ 'c ' C^ U d 1$ '5 .2 "E - S N c +-> c Js Q C^ ^ "p -J c ^ > o S < H <: M 8 i s-* cj co CO 00 00 OS (M os Tt< - s rH in co' t-^ o in oo o o Qi e v J} ss C? Q) to bJD S so 1 *2 > 0> 2 g . O> 0) S ; c. bOO) rt csj -g 4 I 1 SH rf 03 3 s^ 111 M 1 f-, U ^ GJ iS Locality Germany- Saxony, 5 yea "g | >:g 5 o o ^ S o CS rj Xlft ' V W 1 ! 3 2 03 3 4J ^H w a o m H MARKETS FOR POTATOES 23 g ot~ooooiooo OlO w coio +jOJ 10 I 5 I f.- U ii 10 t- rH SSSSSSg* "* ** K co co fe . 1-1 OO CO * CO <* t~ 10 CO co oo* C co' a" 10 CO CO ^ CO rH 10 c jb cc 00 CO rH W9- o co id co' co' t-^ ^ co * CO t- gj COrH 4JO CO coco r") 1 ^ r-io C !> CO r ~* t- o co' id i t- ja.uji iddis IO (M CO o od eo4ideacQi0co>4 co* o* ? co o co CO rH .T CO CO IO " 8 8B S! Kj 10 rH *! t-O<3OOOCOOOlOt>- rH CO ^t< CO* C: co o |1| t- oo o rHCOOOOCOCOlOO t- 05 10 00 t- 00 CO o* -^ id cq* co* co co c- 73 OOO5 4-jrH CO od rj! C oo id co co co _^ co co 10 V* O |I c 5 00 CO ~\ *& 11 CO COCOCOCOrHt-OSt- cocoidcoco'idco'rH yC- oo -2 ^ |E cca-*:^^ g g f 1 ^ S: S 1 1 I l ! .1 J ? 7", o "^ 3) 3 l.if t- a.? -1.- 5 5 & 1^1 ||6l-3 - d :?:ss u +j co oa -^ O O O O t* U U t> 24 MARKETS FOR POTATOES The following, supplied June 2, 1914, by Joseph Begin, Superintendent of the Experimental Station of the Federal Ministry of Agriculture, of Quebec, Canada, is given, not only for the value of the figures themselves, but also as an example of thorough cost keeping that might well be followed by every grower of potatoes : TABLE No. 16 Cost of Producing Potatoes, according to data from the best practical growers in this district for the past three years. Rent of land ....$ 4.00 Cost of 10 pounds clover, at 24 cents 2.40 Barnyard manure, 18 tons at $1.00 (Mi exhausted in 1 year) 6.00 Commercial fertilizer, 300 pounds at $20 ( % exhausted in 1 year) 2.90 Plowing of land in spring 2.50 Disc harrowing twice 80 Harrowing once with a smoothing harrow 20 Drilling, 2 % hours, at 30 cents per hour .75 Seed, 25 bushels, at 50 cents 12.50 Cutting seed, one day 1.60 Planting seed, one day 1.60 Covering, 1VI hours, at 40 cents 50 Harrowing twice with a smoothing harrow .40 Cultivating six times, 15 hours, at 30 cents 4.50 Hoeing once, one day 1.60 Poison, Paris green 1.50 Bluestone, 50 pounds, at 10 cents 5.00 Spraying with poison three times with horses 2.40 Spraying with Bordeaux 2.40 Digging, three hours, at 40 cents 1.20 Picking up potatoes, 2% days at $1.60 4.00 Storing, 4 loads, 4 hours, at 40 cents 1.60 Sorting and marketing, 1 man, 4 days, at $1.60 6.40 Team, 2 days, at 24 cents per hour 4.80 Team, 2 days, at 24 cents per hour 4.80 Wear and tear on machinery and interest on money 1.25 Total .$72.80 Average cost of production, per bushel 243 Average farm price received, per bushel 40 The above data is for a 300 bushels per acre crop, which is considered the best average crop obtained on the best farms in this part of the country. How- ever, this is about 25 per cent over the general yield of potatoes on the whole. Mr. George H. Brown of New Era, Oregon, one of the best and most suc- cessful growers of potatoes in the state, with over twenty years experience in raising and marketing this crop, gives the following as his average cost of pro- duction per acre, exclusive of rental value of land, and basing it on wages of $2 per day for a man and $4 per day for man and team. Average yield 150 bushels per acre. TABLE No. 17. Land plaster (gypsum), 50 pounds $ 0.25 Plowing, twice 3.00 Harrowing, five times 1.25 Disking, twice 80 Cultivating, five times 3.75 Seed, 10 bushels 5.00 Seed, cutting 50 Seed, planting 1.00 Digging 1.00 Picking up *- 3.00 Sacks, 60 3.60 Sorting and sacking, at 10 cents per sack 6.00 Total cost of production of 150 bushels $29.15 Cost per bushel As Mr. Brown's farm and warehouse are located directly upon the railroad his cost of loading on cars runs from a half to one cent per sack. For an ordinary haul about 5 cents per sack would have to be added. Mr. Brown sells almost exclusively for seed and states his average profit to be $40 to $50 an acre. Howard Dalton, of Willard City, Utah, has earned the title of "Boy Champion Potato Grower." On one-half acre he raised 360 bushels, which he sold for MARKETS FOR POTATOES 25 $187.77, or 52 cents a bushel. The cost of growing was: Value of manure, $2; spreading manure, $4; plowing, $1 ; harrowing, six times, $1.50; leveling, $1; cost of seed, 450 pounds, $5.20; planting seed, $2; cultivating, two times, $1; irrigating, three times, $1.50; weeding, once, $1.50; harvesting, $18; rent on land, $8. Total cost, $46.70. A net profit of $141.07. H. H. Weatherspoon, district commissioner of the State Board of Horticulture, at Elgin, Oregon, gives the following cost items for a production of 75 sacks per acre on land valued at $50 per acre : TABLE No. 18. Plowing, planting, cultivating, cents per cwt $ 0.21 Digging and picking 10 Sacks, each 08 Cost of actual production 39 Delivery on cars 05 Freight to San Francisco 35 Profit to farmer, 5 per cent on his investment 10 Total $ 0.89 Average actual cost, per bushel 234 "This is very close figuring and about an average for Oregon, and means a cost of $71.10 an acre to produce 150 bushels or 9,000 pounds. Prices lower than this will put all Eastern Oregon and Southern Idaho out of business, as they would be compelled to irrigate. These figures can be relied on for all territory east of the Blue Mountain Range." The following figures of detailed cost of production may be compared with Table No. 18: TABLE No. 19 Statement by Dairy Inspector, Augusta, Maine, May 20, 19H, of average cost of production in that section. Average yield per acre, 285 bushels; average value of land per acre, $50 to $150. Commercial fertilizer $30.00 Applying fertilizer 2.00 Plowing 2.85 Harrowing 4.00 Seed, 14 bushels, at 80 cents per bushel 11.20 Cutting and planting 5.75 Cultivating 7.00 Spraying 5.75 Harvesting 14.00 Grading and sacking 12.00 Total cost, excluding land value or rental $94.55 Cost per bushel, excluding land value 331 K. H. Grubb (i) is authority for the following Idaho figures: TABLE No. 20. Average yield per acre, 150 bushels; average value of land, about $125.00. Plowing $ 3.00 Harrowing 75 Floating 1.00 Seed, average 700 pounds, at 2 cents per pound 14.00 Planting 2.50 Irrigating, first year 5.00 Cultivating, 3 times at 50 cents each 1.50 D'gging 1.50 Picking, at 4 cents per bushel 6.00 Sacks, 75 at 7 cents each 5.25 Hauling to pit 2.00 Total, excluding land or rental value, interest, taxes or other overhead expenses $44.00 Cost per bushel, exclusive as above 293 26 MARKETS FOR POTATOES TABLE No. 21 The Manager Southern Idaho Producers' Association, under date of June 6, 191 k, gives the cost there as: Average yield per acre, 150 bushels. Breaking alfalfa land, fall plowing $ 4.00 Breaking alfalfa land, spring plowing 2.15 Harrowing, 3 times 20 Seed, 1 to 1% tons per acre, at 50 cents per bushel 25.00 Cutting Planting Fertilizing Harrowing after planting Five times over with cultivator Digging Picking up, 5 cents per cwt. 75 2.50 .20 40 10.00 3.00 _ .. . 4.50 Sacks, 6 cents per cwt 5.40 Hauling to train, 50 cents per ton 75 Total $58.85 Cost per bushel 392 (Note that in the above the fertilizing cost is only for spreading, and does not include value of fertilizer itself. Also that 150 bushels per acre is a low estimate, it being nearer 200 bushels usually. At the latter figure the average cost per bushel would be 29.2 cents. The state average for cost per bushel, compiled from a number of statements, is 25.5 cents, while some producers claim as low as 17 cents.) TABLE No. 22 L. F. Shanklin of Lonipoc, California, gives cost for that district as: Average yield per acre, 260 bushels. Rental of land $30.00 Seed, 400 pounds, at 1 % cents per pound 6.00 Plowing and preparation 5.00 Cultivating twice, hoeing once 1.00 Digging and picking 3.00 Sacks, 5 cents each, and sacking 5 cents 10.00 Hauling 1.00 Total, including land value $56.00 Average cost per bushel, including land value 215 Total, excluding land value 26.00 Average cost per bushel, excluding land value 10 (Even if the above production per acre were cut in half, it would give an average cost per bushel of only 20 cents, or about the same as Oregon.) DeWitt C. Poole, Jr., Deputy Consul General, Berlin, Germany, June 9, 1914, gives the following average costs for the five years, 1908-13, which are exclusive of land values or interest : (a) TABLE No. 24.- Wholesale Prices in Cities, December 12, 191}. Locality Planting and cultivation Harvest i HH Cost per aero Coat per bushel Province of Saxony Mecklenburg $11.14 8.32 $ 7.79 10.30 $18.93 18.62 $0.219 .21 Silesia 10 42 7.17 17 59 174 Kingdom of Saxony 6.96 6.28 13.24 .255 MARKET PRICES (a) TABLE No. 24 Wholesale Prices in Cities, December ^2, City Cents per bu. Pittsburg 43 to Dallas 80 to Denver 90 to 115 St. Louis 38 to Cincinnati 40 to Chicago 30 to New York 42 to Kansas City 40 to Detroit -100 to 105 Minneapolis 45 to 50 Cleveland 33 to Jacksonville 92 to 100 Philadelphia 42 to 62 m. 50 San Francisco Delta Burbanks Per cwt. 75 to 100 85 Salinas 135 to 150 15 Oregon 100 to 125 52 A Q Los Angeles, Burbanks 115 to 140 43 67 Los Angeles, Idaho Rurals... Portland ...105 to 120 ... 65 to 75 56 05 50 45 Seattle Per ton ..$13 tn $17 MARKETS FOR POTATOES 27 TABLE No. 25. Prices Paid for Potatoes to Producers in Oregon. (Cents per bushel of 60 pounds.) 1911 1912 1913 1914 Average January 73 61 31 53 54Ms February . 71 65 32 55 56 March 80 78 35 50 61 April 83 102 36 43 66 May 98 88 20 37 61 June 137 75 22 40 68 V 2 July 154 75 29 86 August 120 65 60 82 September 84 50 55 63 October 76 38 58 57 November 64 36 52 51 December 67 31 58 52 Average 92 64 40 .... 64 TABLE No. 26. Prices to Producers. Mavl. 1913 Mav 1, 1914 December 1, 1912 December 1, 1913 Idaho $0.30 $0.48 $0.29 $0.50 Washington .32 .42 .36 .60 Oregon . .20 .37 .31 .58 California .42 .65 .65 .70 United States 48M> .714 California: Prices to producer, in cents per bushel: 1908, 77; 1910, 85; 1911, 90; 1912, 65. Idaho: First shipments bring about 50 cents per cwt. The average net prices to growers, by months, is: September, $1; October 75 cents; November, 77 cents; December, 67 cents; January, 90 cents; February, 75 cents; March, 63 cents; April, 70 cents; May, 80 cents per bushel. In November, 1914, potatoes were selling at 30 cents per bushel, f. o. b. shipping points. (j) The average price on New York farms for 47 years 1866 to 1912 was 53 cents per bushel ; and the average wholesale price in cities 1850 to 1913 was 65 cents. POSSIBLE MARKETS FOR OREGON POTATOES It is stated that plans are being matured for shipping to the Atlantic Coast via the Panama Canal from Portland, and that a market there can be created. The Department of Commerce, New Orleans, reports : "Oregon potatoes reach Louisiana only when Michigan, Wisconsin and Minne- sota are exceptionally high in price, the latter being most favored and being sold to commission merchants, laid down in New Orleans, at $1.50 per cwt. Washington and Colorado potatoes bring $1.45 cwt., f. o. b. New Orleans. The freight from Oregon is prohibitive except under unusual conditions." (This before Panama Canal, through which rate may be provided at 30 cents cwt.) E. E. Judd, the Department of Commerce agent at New Orleans, reports, January 28, 1915: "Some of the principal potato dealers in this city inform me that in the past Bermuda potatoes have come into the New Orleans market for about two weeks in April of each year, but that during the past two years no shipments have been made. They state that Bermuda supplies a new early potato that sells at about $5 per barrel, and enters the market between the seasons of domestic potatoes. The production of early potatoes in this immediate vicinity has increased so rapidly that within the last two years the Bermuda article has been practically driven out of this market. . . . The home grown potatoes come on the market in April and last until about the middle of July. From then until about the tirst of December supplies are obtained from Oklahoma, and after that from 28 MARKETS FOR POTATOES Wisconsin and Michigan. The latter cost about 60 cents per bushel, sacked, laid down in New Orleans. These potatoes pay a rate of 42 y% cents per cwt,, or about 30 cents per bushel. They are of excellent quality and fill the market needs satisfactorily. Oregon potatoes come into this market by rail, though the rate is 75 cents per cwt. This only has occurred when the Western potatoes come very cheap and those of Michigan and Wisconsin are high in price. Mr. Kohlman, of Kohlman Bros. & Sugarman, who are among the largest dealers in potatoes in this city, is rather skeptical as to the success of shipping Oregon potatoes into this port by water (via the Panama Canal). He says that early potatoes would be likely to spoil en route, and very late potatoes would be likely to sprout. He believes that shipments of sound matured potatoes might come through satisfactorily, but that such potatoes would reach his market at the height of the season, when prices would be low. He would, however, be glad to get in touch with possible shippers who would be willing to quote a price laid clown in New Orleans for sound potatoes, the shipper taking all the risks of spoiling en route. ... I would be glad to supply the names of other com- mission merchants in this city if so desired." One of the features of the New York City market is the high prices com- manded an average of $1.44 per bushel ($6 per barrel) by the Bermuda potatoes. (Compare this with Oregon's average of 58 cents more than double.) The freight rate, by water, from Bermuda to New York is 50 cents per barrel. The first shipment arrives in New York about December 1, and consists of the second crop grown in Bermuda. The next crop begins to arrive in April and the first of May. The stock received during the winter months is known as the fall grown crop and is a red-skinned round potato. The spring crop consists largely of the Bliss-Triumph variety. Shipment is made in barrels. These Ber- muda potatoes command a special price because of their high quality for table use, none of them being imported for seed, and also because they mature very early in the spring, or in the latter part of our winter, and so reach the market when prices are highest and domestic supply lowest. (See Table No. 3.) Brazil needs and imports large quantities of potatoes. Before the war most of her supply came from France now they must come from other countries. Experimental shipments from Oregon to Brazil and other South American coun- tries might lead the way to the establishment of a regular and profitable market with that country. Present prices (October, 1914) are $1.45 to $1.60 per case of 66 pounds, including cost, insurance and freight to Santos. Each box must contain 66 pounds, and great care must be taken in packing. Wooden cases, as light as possible to stand the rough handling of ocean freight should be used, and they should be securely strapped with wooden staves or steel wire. The planks must be wide enough apart to permit thorough ventilation. (See pages 15-19.) THE INDUSTRIAL USE OF POTATOES In the industrial utilization of potatoes, manufacturing commercial starch, glucose, dextrine, alcohol, flour, stockfood, etc., it is the starch content of the tuber that determines its value as it is from the potato-starch in its natural state that the various products are made, or upon which their food value depends. (f) The quantity of starch contained in potatoes is, as a rule, 10 to 20 per cent. It is greatly influenced by the method of keeping them, as the life of the tuber and consequently also the process of decomposition continues until the potato is used. It is probable that an increase of starch may be obtained by drying out the potatoes. Stored potatoes never should be exposed to frost. When stored for any length of time their content of starch decreases, especially if they be stored in damp or warm bins. Sprouting also decreases the content of starch. (f) Potatoes raised in Germany for industrial purposes are marketed for at least one-third less than table potatoes and the highest prices paid (36 cents) for either variety during ten years is nearly 10 cents less per bushel than the prices described by the Secretary of Agriculture as low in the United States. Under these circumstances there would appear to be no great encouragement for the building of stills and starch and drying plants for the utilization of potatoes MARKETS FOR POTATOES 29 exclusively in the United States on a scale comparable with that in Germany until some change in agricultural conditions gives the manufacturer a cheaper raw material. (n) "The reasons for the comparatively small industrial use of potatoes in the United States may be summed up as : Same products can be made cheaper from other materials ; price of potatoes for other purposes too high ; not sufficient supply of culls and surplus available to factories ; value of stockfood ; foreign competition, Germany paying an average of only 18.3 cents per bushel for indus- trial potatoes. Corn, for instance, can be produced more economically, is better for stock feeding, and is a cheaper source of starch, glucose and alcohol. The scarcity and high cost of labor in the United States are other factors of influence." "In every 100 pounds of average potatoes there is 75 pounds of water ; of the remaining 25 pounds, about 20 is carbohydrates (starch and sugar, etc.), and 2 pounds protein. . . . Tests made in 1899 of 46 different varieties showed the Zenith variety to possess the highest starch content 22.9 per cent; and Royal Blush the least 13.1 per cent; the average for all varieties being 16.2 per cent. In 1890, 31 varieties, mostly different from those tested the previous year, had an average of 14.3 per cent, Burbank showing the highest with 17.7 per cent; and the Kidney the least 11.4 per cent. All were grown on the same kind of soil and under practically the same cultural conditions. Still, the varia- tions in starch content was as much as 9.8 per cent. The percentage of starch in pronged tubers was smaller than in the regular. . . . The percentage was largest in the deeper growing tubers and smallest in those growing nearest the surface. . . . This would seem to be due to the temperature, the cooler the soil the greater the starch content. . . . Scabby potatoes are not neces- sarily poorer in starch than healthy ones." POTATO STARCH (f) The manufacture of starch from potatoes simply consists in the mechan- ical separation of starch from the other parts of the tuber. These parts must be opened and disintegrated and the starch washed out. (See O. A. C. Bulletin.) (n) The manufacture of starch from potatoes in this country is at present confined to culls. . . . The margin of profit is not large, in spite of a protective tariff of 1 cent a pound ; the factories are able to run only six weeks in the year, and the interest and overhead charges are therefore high. (f) The total quantity of starch made in the United States in 1900 Was 543,040,139 pounds, valued at $10,888,853; in 1905 the total was 358,005,026 pounds, valued at $10,975,597. . . . The value of the corn starch made by the 131 factories primarily engaged in the manufacture of starch in 1905 was $4,702,309, or 58.2 per cent of the total; the value of the potato starch was $924,476, or 12.9 per cent; of cassava and wheat starch, $1,124,612, or 12.4 per cent; and of cattle food, $508,723, or 6.3 per cent; the value of all other products, which include gluten feeds, corn oil, soap, etc., was $822,784, or 10.2 per cent of the total. . . . The decrease in the output in 1905 from 1900 was due in a large measure to the decrease in the foreign demand for starch. . . . There was a net decrease in 1905 of 14 in the number of corn starch factories, and a net loss in product of 86,554,660 pounds, or nearly 50 per cent of the decrease in the total output. (f) "In the United States starch is principally made from corn. In 1909 about 40,000,000 56-pound bushels of corn were used for this purpose, as com- pared with some 3,500,000 60-pound bushels of potatoes. The corn starch was valued at $15,962,916, and totaled 638,825,366 pounds; the output of potato starch was 24,873,415 pounds, valued at $823,019. Glucose and glucose sirups to the value of nearly $18,000,000 were manufactured in 1909, but the principal raw material used was corn. The potato starch industry in the United States is centered in Arrostook County, Maine, where in 1909 there were 61 of the 64 factories in the state. These factories reported the consumption of 2,854,729 bushels of potatoes, or over 80 per cent of the total used in the countrv for the manufacture of starch. 30 MARKETS FOR POTATOES (g) The starch factories making potato starch produced 27,709,400 pounds in 1905, or 14.1 per cent of the total produced by the 131 factories making the manufacture of starch a specialty. This output of potato starch was 6,232,426 pounds, or 18.4 per cent less than that of 1900. No potato starch was made in 1905 in New Hampshire and North Dakota, although it was produced in 1900, while the decrease in Minnesota was large. . . . The exports of starch from the United States was 124,935,963 pounds in 1900, valued at $2,604,362 ; and 61,450,- 444 pounds in 1905, valued at $1,430,572. This shows a loss in the five years of 50.8 per cent, and was caused by the large increase in the manufacture of potato starch in Europe, particularly in Germany and Russia. TABLE No. 27. (g) Quantity and Value of Potato Starch Produced by United States, 1905 and 1900. And Quantity and Value of Potatoes Used, and Starch Produced in 1905. * Michigan only. State Census Starch produced Potatoes usr d Pounds Value Pounds Cost United States 1905 1900 1905 1900 1905 1900 1905 1900 1905 1900 1905 1900 27,709,400 33,941,826 15,454,787 15,273,633 6,627,638 10,882,333 650,517 265,000 4,925,8^8 5,043,060 50,600 2,477,800 $ 924,476 1,129,129 523,200 544,760 221,355 329,566 23,379 8,935 154,797 154,030 1,745 91,838 209,372,549 $ 563,651 Maine 105,694,521 331,250 Minnesota 60,167,770 130,583 New York Wisconsin ~ 5,272,200 11,645 37,747,978 88,980 All other states *$490,080 *1,193 The average price per pound for potato starch, according to Table No. 23, is shown to have been 3.33 cents. Note that the amounts received for the manu- factured starch was, roughly, a little less than twice as much as the cost of the potatoes used. (d) The United States exports and imports of starch, 1911, 1912 and 1913, were as follows ; the varieties of the imports are not specified, while the exports probably were all corn starch : TABLE No. 28. Year Imports Exports Pounds Value Pounds Value 1911 7,938,730 15,841,437 16,710,498 $ 222,470 478,465 457,784 158,239,178 83,644,749 110,897,591 $ 3,137,552 1,965,401 2,609,716 1912 1913 The import duty on starch made from potatoes is 1 cent per pound ; on all other starch or starch substances, % cent per pound. For information of value in regard to the manufacture of starch from potatoes we again must turn to Germany, where the industry has been brought to a high state of perfection, and where more is made than in all the rest of the world put together. The following should be taken in connection with the remarks on production in Germany, in this bulletin. (f) The importance of the German starch-sugar industry is set forth in imperial statistics as follows : MARKETS FOR POTATOES 31 TABLE No. 29. Quantities of Starch Manufactured into "Sugar" Fiscal years Factories Produced in establishments Purchased Solid "sn ear" produced Wet Drj Wet Dry Tons Tons Tons Tons Tons 1906-7 . 1907-8 1908-9 1909-10 25 24 l\ 24 48,792 43,279 51,107 77,085 76,021 370 340 541 678 479 42,461 46,886 42,289 42,844 45,522 3,989 1,515 3,861 678 2,560 10,064 9,862 8,762 8,184 8,811 1910-11 (k) Estimate of number of establishments in Germany making starch, glucose, etc., quantity of potatoes used therein, and amount of starchy materials produced in years 1899-1902, year ending September 30: TABLE No. 30. Year Factories number Quantity consumed. Bushels Materials produced. Tons 1899 578 33,333,333 250,000 1900 590 40,300,000 274,750 1901 595 44,000,000 300,000 1902 627 51,000,000 349,000 (i) One German factory uses 250,000 tons of potatoes annually. The price paid for potatoes of 18 to 24 per cent starch content is 20 to 35 cents per 100 pounds, or 12 to 21 cents per bushel. One of the by-products is 3,500 tons of glucose. (f) Export from Germany to the United States: 1910 1911 1912 TABLE No. 31. (f) Export from Germany to United States. Potnto starch Dextrine, etc, 3,301 tons 2,297 tons 2,163 tons 1,609 tons 1,002 tons 1,281 tons "By scientific improvement of varieties of potatoes the starch contents were increased from 14 per cent in 1875 to 20 per cent in 1905, and often reached 28 per cent." But the above is contradicted by individual district tests, which show an average of 15 to 18 per cent. "In Germany potatoes particularly rich in starch are grown especially for the starch industry." (For details of potato-starch industry in Germany see Special Consular Report No. 64, Department of Commerce and Labor.) With regard to the feasibility and advisability of establishing a potato-starch factory on the Pacific Coast, and, more especially in Oregon, the following state- ments are made : (h, greatly condensed) The principal use of potato starch in the textile industries for the sizing and finishing of goods and the printing of calicoes, etc. . . . and is much more desirable for these purposes than corn starch. The average price for corn glucose on the Pacific Coast is about $2.75 per cwt., and for potato glucose 50 to 100 per cent more. Freight on corn glucose, Chicago to Pacific Coast, is 81 cents per cwt. . . . Any market other than a local household consumption would be found on the Atlantic seaboard. . . . The local consumption of glucose on the Pacific Coast is over 13,000 tons per annum, Chicago being the principal and nearest point of supply. Analyses of the starch contents of Oregon potatoes, the average of a large number of tests of different varieties, give 19.4 per cent; of California potatoes an average of 15.2 per cent. Assuming that 100 pounds of potatoes will yield 16 pounds of starch or glucose, the cost of manufacture would be 8 cents, the product, at 2.8 cents per pound, 32 . MARKETS FOR POTATOES would be worth 44 cents, leaving a net value of 36 cents to cover the cost of the raw material delivered at the plant. . . . The average crop yields 15 per cent culls. . . . Methods of production of starch in the United States are crude and not to be compared to German methods. Probably the United States recovers only about 60 per cent of the available starch contents, while most approved methods will yield approximately 95 per cent of commercially dry starch (16 to 18 per cent water). According to this 6 tons of 18 per cent potatoes, or 7 tons of 15 per cent, would yield 1 ton of commercial starch. . . . The prevailing price for potato starch in New York and Boston is 3 to 4 cents per pound. ... If cost of manufacture .is *4 cent per pound, rail freight Vz cent and price received 4 cents, value of starch at point of manufacture is 3% cents. This would make 100 pounds of 18 per cent potatoes worth 60 cents, and of 16 per cent worth 52 cents. . . . For a plant with a capacity of 5 tons of potatoes per hour the cost of machinery (German) would be $20,000. . . . and total cost of a plant to manufacture 20 tons of starch or glucose per day of 24 hours would be, exclusive of site, $60,000. . . . Such a plant could reasonably handle 15 to 20 thousand tons of potatoes per season, of six months run, and make about 3,000 tons of starch. . . . This, at a value of 3% cents per pound, would total $195,000. . . . This means that 54 cents per cwt. could be paid for potatoes, without profit. Any price paid below 54 cents would indicate the profit. (Note that corn starch is worth 1.78 cents per pound, delivered in Boston, as shown in letter on page 24, and potato starch 1% times that, or 2.67 cents.) Eustace Pennock & Co., Boston, who sell seven-eighths of all the potato starch manufactured in the United States, say : They import half their supply. Starch is delivered to cotton mills at 3*4 to 3% cents per pound; foreign can be landed in Boston at 3 to 3% cents per pound. Maine pays, at factories, for culls, 25 to 40 or 50 cents per barrel, con- taining 2% bushels, or 15 to 30 cents per cwt. Suggest state bounty of at least i<2 cent per pound ; North Dakota pays bounty of 1 cent per pound. Bounty probably would pay freight from Pacific to Atlantic Coast. C. E. Brown, a grower of 20 years at Elk River, Minnesota, says, August 1, 1914: "We have starch factories, but they run only to use culls, and when there is an overproduction, which is not very often. When potatoes are worth over 25 rents per bushel they cannot use them for starch." Factory at Cambridge, Minnesota, reports September, 1913 : "We operate only about two months a year, when price is 20 to 35 cents per cwt. Pay dividends of 50 to 100 per cent." Factory at Princeton, Minnesota, reports September, 1913 : "Operate about once in three years, last in 1909. Maximum price for potatoes 18 cents per cwt. No dividends. Factory at Ishanti, Minnesota, reports September, 1913 : "Operate 40 days a year, pay 20 or 30 cents per cwt. for potatoes. Not paying proposition except as dump for culls and surplus. Get 6 1 / to 8% pounds of starch from 60-pound bushel of potatoes. Starch sells at 2% to 4 cents per pound in local market. Takes % to % ton of good soft coal, one man one day, to make ton of starch. Factory capacity of 6 to 8 tons per day costs $15,000 to $20,000. No money in potato starch business at present time." Dairy inspector at Augusta, Maine, says: "Potatoes for starch are worth 15 to 30 cents per bushel. Use culls only. Value in potatoes not sufficiently large to warrant shipment for any considerable distance from factorj r . Alcohol from potatoes not being made in Maine." S. 3. Mealey of Monticello, Minnesota, says, July, 1914 : "I am today junking all five of my starch factories that cost me from $12,000 to $18,000 per mill; because I cannot afford to pay over 18 to 25 cents per bushel and farmers are too prosperous to raise^ potatoes for that. This is based on a 25-cent lake and rail, and 30-cent all-rail freight to Boston and New England. Because of the competition of sago and tapioca and corn starch. The corn starch interests are spending thousands of dollars to perfect cotton machin- ery for the use of corn starch." MARKETS FOR POTATOES 33 (The Utica Steam and Mohawk Valley Cotton Mills of Utica, New York, February, 1913, say: "We have some times used potato starch in the manufacture of cotton goods, but at present we are using almost exclusively corn starch, for the reason that potato starch costs more than double the price of corn starch. We use six to ten carloads of starch yearly in our weaving mills. At the present time the price of high-grade Pearl corn starch, for warp-sizing purposes, is $1.78 per hundred pounds, delivered in Utica, in bags weighing 280 pounds each. The price in barrels is about 10 cents per 100 pounds more. When the price of potato starch gets down to, say 1 % times the cost of corn starch we would then use potato starch instead. For the past four or five years potato starch has been bringing fancy prices, as high as 4% to 5 cents per pound." George Hall of Eugene, Oregon, who was in the starch business for a number of years, says : "Oregon is too distant from the markets to make the manufacture of potato starch profitable under present conditions. A starch factory is not necessarily an expensive proposition ; it should not cost over $8,000 for a modern plant of small size. Several small factories, built as inexpensively as possible, would be better than one large one, in order to reduce transportation charges as much as possible. It is doubtful if 'green starch' wet, as it comes from the crusher, could be shipped regularly and successfully. It sours very quickly in warm weather. Small 'green starch' factories shipping to a central dryer are impracticable and unnecessary : drying is a simple process. (See O. A. C. Bulletin.) Starch requires cool weather and an abundance of water to manufacture. The market price for potato starch is controlled by the price of corn starch ; 1 ^ times the latter is the rule. It Is not practicable to pay over 25 cents per bushel for potatoes. That is the max- imum. In New York we figured to get nine pounds of starch from each bushel of potatoes, using culls and surplus. We received 3 to 4^ cents per pound for potato starch. Ii any factory offers to pay even as much as 30 cents per cwt. for starch potatoes they should be required to give a bond for payment of that price for a term of years if farmers are to plant expecting that payment. Pay- ment should be made according to the starch content of the potatoes." G. L. Tarbell of Yankton, Oregon, and C. True of Sherwood, Oregon, both formerly of Maine, where they raised thousands of bushels of potatoes for the starch factories there, unite in stating that 25 cents is the maximum that can be paid per bushel for that purpose, f. o. b. factory- That the cost of production of potatoes in Maine is 12 to 15 cents per bushel. ... It is impracticable and unnecessary to ship green starch to a central drying plant, since, when the green starch is made most of the work is done, and it costs little more to dry it ; because it is of the consistency of soft soap and therefore not easy to handle ; and because it is very apt to spoil in transit. . . . It is much better to build a number of small factories, costing about $8,000 each, and locate them close to the sources of potato supply and where water is abundant, rather than to build one large plant. . . . Starch making is a simple mechan- ical process for which crude machinery and the simplest type of buildings are entirely sufficient." If, as is claimed, the districts on the coast of Oregon produce as high as 500 to 600 bushels per acre, then that is the section where a starch factory should be located, if the industry is undertaken in this State, and not where rail shipments would be necessary. ALCOHOL FROM POTATOES (i) Potatoes have a higher percentage of alcohol than other root crops, giving 14 to 26 per cent of fermentable matter to the cwt. ; 20 per cent reasonably may be expected, (t) It has been shown theoretically, that 50 gallons of 95 per cent alcohol should be produced from the residues of 100 bushels of potatoes. (r) Approximately 10 pounds of industrial alcohol can be made from 100 pounds of potatoes, or 6 pounds to the bushel. It has been shown that, at the prices quoted in 1905, the amount of Indian corn necessary for the production of a gallon of industrial alcohol costs not less than 15 cents. From this it is evident that the potatoes for alcohol making will have to be produced at a cost not to exceed 15 cents a bushel before they can compete with Indian corn. 34 MARKETS FOR POTATOES (n) The manufacture of alcohol from potatoes has not yet become established in the United States, for various reasons. The prices of potatoes marketable for other purposes have been too high, and no sufficient supply of culls and surplus have been available. The average price for potatoes for distilling in Germany for five years, 1906 to 1910, was 18.3 cents per bushel. It is probable that the farmers there would be less disposed to grow the crop if it were not for its indirect benefits, including the feeding of the mash left over. Petroleum, which Germany lacks, provides us with fuel oil and gasoline at prices which at present nearly eliminate alcohol as a competitor. (f ) For the manufacture of alcohol the content of sugar in potatoes is as impor- tant a consideration as the content of starch. Their value for distilling increases with their ripeness. If they deteriorate in a dry state they still are fit for the manufacture of alcohol. (For details of manufacture of alcohol and process used, see Special Report No. 64, Department of Commerce.) (For regulations governing the manufacture of alcohol, pure and denatured, in the United States, prospective distillers should write to the Treasury Depart- ment, Washington, D. C. By conforming to certain restrictions of manufacture and sale, denatured alcohol may be made and sold free of tax. ) (k) Number of potato distilleries, quantities consumed, and alcohol produced therefrom in Germany, 1899 to 1902, year ending September 30: TABLE No. 32. Year Distilleries. Number Quantity con- sumed. Bushels Alcohol produced. Gal lona 1899 5,571 94,820,000 82,070,592 1900 6,332 91,740,000 77,877,078 1901 . 5,853 102,300,000 87,249,539 1902 6,537 113,266,666 92,965,940 (f ) There were 5,577 farm stills and 17 industrial stills in operation in Germany in 1911, used principally for the extraction of alcohol from potatoes, against 7,626 farm stills and 710 industrial stills used principally for the extraction of alcohol from grain. The quantities of potatoes consumed and the alcohol pro- duced in this manner in recent years are shown by the following table : TABLE No. 33. Alcohol produced Year beginning Octoln-r 1 factured. (Metric tons) 1 Agricultural stills. (Gallons) Industrial still?. (Gallons) 1906 2,632,000 78,179,270 265,887 1907 2,778,000 82,384,312 787.466 1908 2,939,000 89,625.882 698 889 1909 2,540,000 77,188,009 438.549 1910 2,519,000 73,570,841 565,509 (A metric ton is 2,204.6 pounds.) (1) "For the year 1906-07, 5,871 agricultural distilleries in Germany produced 78,179,270 gallons of alcohol from potatoes, and 21 industrial distilleries 265,887 gallons. This was 77.3 per cent of the alcohol manufactured from all sources, which was 101,473,345 gallons. Of this total the percentages were: Potatoes, 77.3 per cent; grain, 7.2 per cent; grain yeast, 12.4 per cent; molasses, 2.3 per cent; pure spirits, .8 per cent. Many of the 'agricultural' distilleries are owned by the farmers themselves and worked on their own account, but there are also combinations of smaller farmers which are formed for the purpose of erecting a distillery and operating it in mutual interest, using as raw materials the potatoes and grain produced by their members. . . . The apparatus of these small farmers is generally most primitive, producing 5 to 13 gallons at a time. . . . There are also ambulant distillers, who go from farm to farm and work up the materials of the farmers. . . . The smallest distillery produced 13 gallons, the largest 15,850." MARKETS FOR POTATOES 35 Capacity. Gallons Weight. Pounds Price. Dollars 330.6 143 551.1 661.3 205 238 992 314 1,763 619 (f) "It is difficult to define the area necessary to render the erection of a distillery profitable. Nearly all the German distillers produce from 13,000 to 26,000 gallons, for the manufacture of which 8,000 to 37,000 bushels of potatoes are necessary." "Apparatus for obtaining potato spirit containing 35 per cent alcohol, accord- ing to the Tralles system, is quoted as follows : TABF.E No. 34. 26.4 52.8 79.2 132 264.1 In Germany a considerable conservation of both potatoes and cereals for food purposes has been effected by the decision of the government, on account of the war, to cut down the production of alcohol by 40 per cent. (f) "In Switzerland, during the last five years the average annual consump- tion of potatoes for distilling has been 22,500 tons, with an average price of 44 cents per cwt. . . . This is only a little more than 5 per cent of the total production of potatoes. ... It has had a beneficial effect upon the agricultural interests of the country, as potato growers are to a certain extent insured against a too excessive depreciation of their crops." In Russia more alcohol is produced (or was before the recent ukase against vodka) from potatoes than from all other sources. (u) "Any scheme for the operation of agricultural distilleries, whether large or small, should provide for the utilization of the by-product known as 'slop.' This is the residium remaining after the alcohol and a small amount of water have been boiled off from the fermented distillery mash. . . . This slop has been found, both in this country and abroad, to be stock food of high value, and should be fed to the stock on the farm that furnishes the raw material. . . . It is allowable to give from 18 to 20 gallons per day in fattening oxen weighing from 1,300 to 1,400 pounds. More than this amount has been found injurious. Milk cows should not receive more than 16 gallons daily. ... It should be fed fresh and hot." PRODUCTS OF DRIED POTATOES In the United States there have been practically no potatoes dried for com- mercial use. In Germany, however, this is an important part of potato utilization, the dried product being used for stock food, starch manufacture, alcohol, flour (for both starch and as food for man and stock). To a great measure drying solves the problem of the disposal of surplus crops, as it enables the product to be kept until there is a sufficient demand from one or all of the several industries. (n) The problems to be met in commercial potato drying relate mainly to the present cost of the labor in picking up and delivering to the factory the potatoes not marketable for table use. In many cases, however, it is necessary to remove these culls from the field to prevent the spread of potato diseases, and it would seem that the drier would pay for the labor involved. (m) "The plant requisite for the drying of 10,000 tons of potatoes during a season of about eight months costs $18,000 to $19,000. The machinery alone, without a press for making the meal into cakes, costs $12,000. For a building $3,000 suffices, the remainder is needed for pumps, motive power, washing vats, etc. The force needed to operate the plant consists of seven men : engineer, stoker, helper, cellarman, two machine men, one to handle the residual liquors. If the final product is to be pressed into cakes the additional cost for plant is about $4,000, and two more operatives are required. Such an installation naturally can be operated with great economy in connection with a distillery or starch factory. In practice it is found that the total cost of preparing 36 MARKETS FOR POTATOES impressed potato meal by the above method (including interest, depreciation, etc.) is 56 cents per long ton of tubers. The additional cost for pressing into cakes is 12 cents per ton. ... In practice H.8 tons of raw potatoes yield one ton of the dessicated product." (f) "The erection of a potato-drying plant may be considered practicable on a farm of 990 acres on the condition that sufficiently large area is planted in potatoes. For such a plant on a small scale, an investment of at least $2,380 should be figured." The cultivation of potatoes is far ahead of the manufacture of alcohol and starch, and the quantities used for drying purposes (in Germany) soon will exceed the quantities used in all other branches of the potato industry. It may be said that the drying of potatoes may reach the importance of the German sugar industry. The dried potato is excellent material for the manufacture of alcohol . . . and of compressed yeast. . . . The dried is not a com- petitor of the fresh potato ; it is an entirely different product and never Will exercise a harmful influence on the market. On the other hand, drying firms are becoming buyers of fresh potatoes, and anyone who knows the influence the starch industry has had on the German market will be able to appreciate the importance of this fact. "Distillers and starch converters, after all, use only a small part of the (German) total crop, and the former choose between potatoes and grain accord- ing to market conditions. For the present, therefore, the only form of potato utilization which gives much promise of ability to care for future crops of increased magnitude is the drying industry. This industry, first remarked officially in 1903, when there were six establishments in the business, counted 254 drying plants in 1910, and the quantity of potatoes dried, which was 160,539 tons during the season of 1908-09, had reached 332,641 tons during 1909-10. The further development of this industry is being encouraged as part of a well-ordered plan for bringing about, as far as possible, the economic indepen- dence of Germany. As Germany now (1914) imports upward of 3,500,000 tons of stock foods, the ultimate hope is that by increasing the potato-drying industry, and also by increasing such crops of other foods that must be mixed with potatoes in order to provide a balanced ration, the time may not be far distant when there will no longer be any need of importing stock foods at all." (n) In 1910 more than twelve million bushels of potatoes were dried in German factories, which numbered 371 in 1913. Vice Consul Dreyfus of Berlin reports under date of October 17, 1914; "Owing to the war Germany's import of cereals is greatly curtailed especial efforts are being made this year to further the conservation of the potato crop. . . . The government already has offered to assist in setting up factories for drying, the cost of each one of which is about $4,760. the purpose being to dry as many as possible during the present season. The sale of potatoes should increase correspondingly with the consumption of potato flour for baking. Many bakers already have made bread with an addition of 10 to 20 per cent of potato flour, of which half was made from dried potatoes. In view of the fact that potato flour is about 8 marks ($1.90) per 100 kilos (220.46 pounds) cheaper than rye flour, this should tend to lower the price of this necessary food product." (f) "The potato-flour (sometimes called rough starch) industry in the Neth- erlands was started in 1840. . . . There are now 30 factories for the manu- facture of dry potato flour, excluding all other potato products; and 14 others where it is made in other forms for conversion. . . . It is estimated that 2,000 workmen find employment in this branch of industry. The total con- sumption of potatoes by all the factories, exclusive of those operated cooper- atively (7 in number), averages 800,000 tons annually ... 85 per cent is exported to countries having important textile industries; exports, 1910, 126,118 tons; 1911, 133,941 tons; 1912, 151,123 tons. The total annual output of potato flour in the Netherlands is estimated at 145,200 tons, and that of glucose at 22,000 tons. The price of potato flour varies between $1.60 and $2.40 per 100 pounds." MARKETS FOR POTATOES 37 Consul Ralph C. Busser, Trieste, Austria, November 17, 1914, reports: "According to a decree of the Austrian government bakers are forbidden, from December 1, 1914, to use more than 70 per cent of wheat flour in the composition of bread, and the remainder may be potato flour. . . . Wheat flour costs today $13.40 per quintal (220 pounds) ; potatoes, $2.80 per quintal, wholesale. . . . The price of the bread ingredients therefore falls from $13.40 to $9.80." (a) Washington, D. C., Feb. 14, 1915: "Baking experiments to test the value of making bread of potato meal mixed with wheat flour are now being under- taken by the United States Department of Agriculture's Bureau of Chemistry. This is to test the possibilities of the potato in the same manner as Germany and Austria are now advising their people to do. The increased cost of living throughout the world has emphasized the fact that flour made of other substances than wheat, or of these substances mixed with wheat, might provide people with healthful food quite as nutritious as the pure wheat flour, and at the same time cheaper. "Austrian bakers are now compelled by law to use at least 30 per cent potato meal in making their bread. The Bureau of Chemistry's potato-meal bread has been baked with from 25 to 50 per cent potato meal and the remaining percentage wheat. The most satisfactory loaves in combining economy and appearance were those made with the minimum percentage allowed in Austria or less. The loaves made with more than 30 per cent potato meal were not so satisfactory as they were heavier and less attractive in form. The bread has a rather coarse texture and dark appearance, but possesses a distinctive and agreeable flavor. It also retains moisture for a much longer period than ordinary wheat bread. "The Bureau of Chemistry used the imported 'potato flake' in some of its experiments, and in others meal made by slicing, milling and drying potatoes on a small scale in its laboratories. It should be added that such ordinary 'potato flour' as is on our American markets is not the same as the German 'potato flake' or waits mehl which has given such satisfactory results in the experiments. "The question has been raised as to whether the ordinary cooked potato might not be satisfactorily substituted for the prepared potato meal. The experi- menters believe that it might serve the same purpose if used in just the right proportion, but this would be difficult for the average housewife to determine as there is great danger of using too much and producing a very soggy loaf. However, the custom of adding a very little potato is already used by many housekeepers to keep their bread moist, and this practice can very well be recommended for more general use. "The Bureau of Chemistry is making these experiments in spite of the fact that there is a law which makes it difficult for manufacturers to make mixed flour satisfactorily. This law surrounds the manufacture of mixed flour with so many restrictions that the business has not become a popular one. The result is there is very little mixed flour at present manufactured and offered for sale. The Mixed Flour Act was passed in 1898 before there was a Food and Drugs Act, and was passed for the purpose of raising a war revenue at a time when many of the common articles of food did not command so high a price as now. "The tax of 4 cents which is now imposed on every barrel of mixed flour is not in itself a heavy one ; it is the collection of it with the attendant regulations and restrictions that hampers any manufacturer who would like to make such flours. "It should be stated in connection with the mixing of other materials with wheat flour in making bread that this cannot always be done economically. There must be taken into consideration the prevailing market prices of the commodities to be used. 38 MARKETS FOR POTATOES "This article is written primarily for the purpose of bringing to the attention of the public the fact that in order to obtain good, nutritious and wholesome bread it is not necessary to use an entirely wheat flour. A mixture will in many cases produce a bread which is quite as satisfactory. With this a matter of common knowledge, it is believed in times of over-production and the consequent favorable market prices of substances suitable for mixing with wheat flour that bakers may wish to experiment with certain mixtures. Care should be taken, however, in marketing or selling of bread to which has been added in appreciable amount any ingredient other than wheat, that no deception is practiced and that the consumers are aware of the kind of bread being furnished them." POTATOES AS STOCK FOOD (u) The analysis of potatoes, potato skins, and potato "slop" is as follows TABLE No. 35. Material Nitro- gen free extract Ash Protein (Nx.6.25) Ether extract (fat) Sugar as dextrose Starch Crude fibre Potato Potato Skins Potato "Slop" 10.55 38.40 46.24 4.39 6.51 11.26 10.06 21.87 30.00 0.29 2.55 0.69 1.59 1.44 2.29 70.35 8.65 2.98 2.26 20.69 6.54 See chapter on Alcohol, page 26, this bulletin. TABLE No. 36. Comparative Compositions of Ordinary Food Materials. (From "The Science of Nutrition," by Graham Lusk, Ph. D., W. B. Saunders, Pub.) ' h \ Available nutrients 1 ~"~ 23- Kind of food material |fc-g i5i a lavailab] Lutrients 1 i 1 1 iff! ood value aterand liminate er pounc M P F t> H |M 3* < fe a eo fo f a, u. % % % % % Calories % Potatoes 20.0 78.3 l.4 1 7 0.1 17.7 0.8 370 20.3 Potatoes (boiled and cooked) 75.5 1.7 1.9 0.1 20.0 0.8 415 22.8 Potatoes (mashed and creamed ) 75.1 2.0 2.0 2.7 17.1 1.1 475 22.9 Wheat flour, entire 11.4 4.5 10.7 1.7 70.9 0.8 1645 84.1 Wheat flour, baker's grade 11.9 4 2 10.3 1.4 71.7 0.5 1640 83.9 Rye flour 12.9 3 6 5.3 0.8 76.9 0.5 1610 83.5 Corn (maize) flour.... Rice 12.6 12.3 3.6 3.7 5.8 6.5 1.2 0.3 76.3 0.5 76.9 j 0.3 1625 1610 83.8 84.0 Rice boiled 72.5 1.1 2.3 0.1 23.8 0.2 505 26.4 Taking the last column of Table No. 36 and the average farm^values in the United States on December 1, 1913, in cents per bushel, as bases, the following will give an idea of the cost per unit of food value of the foods mentioned: MARKETS FOR POTATOES 39 TABLE No. 37. Pood Pounds per bushel Average prices per bushel in U. S. Dec. 1, 1913 Prices per pound Percentage of food value per pound Cost p^r unit, of food value in deciiuals of cents Potatoes 60 Cents 68.8 Cents 1.14 20.3 .0056 Wheat Flour Rye Flour 60 56 73.4 63.4 1.22 1.13 84.1 83.5 .0014 .0014 Corn Flour 56 69.1 1.23 83.8 .0015 Rice 56 85.8 1.53 84.0 .0018 According to the above, the food values in potatoes cost, per pound of product, four times as much as wheat or rye, and nearly as much more than corn or rice. Or, to put it another- way, and considered from the standpoint of monetary cost, each of the other four foods is practically worth four times as much as potatoes, pound for pound. On the other hand, it is stated that an acre planted with potatoes will yield more than ten, fourteen, or even seventeen times as much food material as will one planted with wheat, rye or peas. (f ) The growing recognition of the value of dried potatoes for stock food arose from the impossibility of feeding them raw in large quantities and the trouble and expense incident to boiling. On July 31, 1910, there were 254 potato-drying factories in operation in Germany, nearly all of them worked in connection with large agricultural undertakings. The amount of raw material treated in the last two years for which figures are available was: In 1908-09 160,539 metric tons; in 1909-10, 332,641 tons. (h) The German authorities consider their dried potato product to have a feeding value equivalent to 80 per cent of that of American corn. (n) It is said that there are 19 millioa swine supported by potato feed in Ger- many, and that potato tops are now dried and used for stock feed on many estates. (g) Although there was a decrease, in 1905 from 1900, of 10,119,142 pounds, or 14.9 per cent, in the quantity of cattle food produced in starch factories in the United States, the value increased $250,700, or 97.2 per cent. (f) The pulp residue from the manufacture of starch the most important by-product generally is used for fodder, but it can be so used only if necessary and proportionate amounts of nutritious food substances containing nitrogen are added. It can be used fresh, sour or steamed, and all animals consume it readily if it is fairly dry or has been previously heated. (s) "Of course dessicated potatoes are supposed to be soaked in water before using and in this way regain somewhat of their original characteristics. Canned dried potatoes are on the market and are prepared for use in camps or wherever it is not convenient to cook food. They may be kept in good condition for a long time, and do not differ greatly from freshly cooked potatoes. (f ) "If raw potatoes are used as stock food, horses and cattle never should be given more than 10 pounds thereof per day, otherwise colic and inflammation of the stomach and intestines are caused. When fed to sheep in greater quantities than 2 pounds per day they cause chlorosis and dropsy. If groats and oil cake are given to the animals the disease is conquered. Boiling and steaming the potatoes also destroys the bad effects. If it is desired to use large quantities as fodder they always should be boiled or steamed. Frozen potatoes should be preserved by being soured in pits or holes. For this purpose the potatoes are steamed, mashed, and put into a pit in alternating layers, each about 6 inches thick, of crushed potato and chopped straw. The top should be well covered with earth thus protected they keep for years and are a good fodder for cattle and swine. For fattening purposes potatoes are a good feed for cattle and sheep and swine if used in conjunction with the necessary quantity of rough provender and nutritive fodder. Steamed potatoes are more fattening than raw, and animals prefer them. 40 MARKETS FOR POTATOES "Whether boiled or raw potatoes have absolutely no effect upon the quantity or quality of the milk. If necessary to use potatoes for fodder for milk cows. an animal weighing about 1,100 pounds should not be given more than 26 to :>o pounds daily. Fattened and stalled cattle may eat as much as 29 to 55 pounds. Horses should not be fed potatoes at all if they have to work continually. Of the residues of the technical industries, distillers' wash plays an important part as a winter fodder for milk cattle as well as for fattening purposes the proportion of nutriment is greater than in the potato itself." (For details of distillers' wash as stock food see Special Consular Report No. 64, Department of Commerce; also see paragraph on "slop," in chapter on Alcohol, page 26, this bulletin.) A. A. Borkind. Professor of Animal Industry, Vermont Experiment Station, says : "At 15 cents per bushel, potatoes are more costly food for dairy stock than silage ; they produce neither more nor better milk. Potatoes are best adapted to hog feeding. In order to secure the best results the potatoes should be cooked so as to be mealy, and be mixed with corn meal or ther ground gra.ins to form a rather heavy mush. In this form they are relished by the swine. Skim milk makes a valuable adjunct to feed with this mixture of potatoes and meal. Pota- toes alone cannot be used to advantage as a feed, nor can they be eaten by the hogs in any great quantity. Experiments at Wisconsin and elsewhere show that 450 pounds of cooked potatoes are worth approximately 100 pounds of corn meal for swine feeding." J. L. Stone, of the Cornell Experiment Station, says: "For stock food the total digestive nutrients in a ton of potatoes will be slightly more than one-fifth as much as would be contained in a ton of corn meal. The potatoes are even more highly carbonaceous than the corn meal, and natur- ally would be best fed in conjunction with those feeds that supply an abundance of protein. There is another factor, however, involved, that is of considerable importance. Raw potatoes are a succulent food, and used in connection with a ration that is deficient in succulence (usually one that does not include corn silage) they would have a value above that indicated by the total digestive nutrients. Some succulent food is desirable in all rations, and a moderate amount of such food, when added as above, produces an effect above that which would be indicated by the nutrients present. The writer's personal experience is that as small an amount as half a peck a day fed all dairy cows (lacking other succu- lence) produces quite a marked effect in the milk flow, and two or three times this amount may be fed to advantage, if the potatoes are available. But they should be introduced into the ration gradually. To avoid danger from choking it is well to run the potatoes through a root cutter. It is impossible to give a cash valuation to a food stuff of this kind, except as a result of careful experi- ment. It is probable that under ordinary circumstances and the present condition of the grain market, potatoes might be figured at from 15 to 20 cents a bushel for feeding purposes ; and if succulence were sadly needed they might reach an equivalent to a valuation of 25 cents a bushel." (q) "In one test potatoes were buried in a silo filled with crimson clover. They acquired the characteristic color of the plant and the odor developed in fermen- tation. It was found that they had been cooked by the heat of fermentation and rendered more digestible. Another silo was filled by surrounding about a ton of potatoes with corn (whole plant). Upon opening the corn and potatoes were found in good condition. The potatoes were not as thoroughly cooked as when packed with the clover. As shown by analysis the potatoes ensiled with crimson clover had lost less water than those with the corn. The crushed potatoes when removed from the silo lost weight very rapidly on exposure to the air, and formed a hard mass, containing only 15 to 20 per cent of water. In this condition they could be kept for a long time. When required for feeding they were soaked in water, regaining their softness and digestibility. Another investigator ensiled chopped raw potatoes with two pounds of salt per 1,000 pounds, under pressure of 2,500 pounds per square yard. The total cost of washing, chopping, putting in silo, and weighing 50 tons of potatoes, was about $15. The temperature of the silo when filled was 39 degrees F. When opened sixty-two days later it was 50 degrees. Cattle ate this pulp greedily, alone or mixed with cottonseed cake." MARKETS FOR POTATOES 41 A SUGGESTION From all of the foregoing a solution of the problem of profitable potato growing and marketing might be found in a cooperative plan that would assure the farmer of his full share of every cent of profit there might be extracted from the business. To this end it might be advisable to establish a central depot at a convenient shipping point readily accessible to the growers of the district in which the association is formed. To this depot all of the growers would ship all of their potatoes, where they would be inspected and sorted. Only those of the very highest quality in every respect would be marketed for seed and table use, and these carefully packed and sold under a name or brand that would establish their reputation. If this high quality was rigidly maintained and the reputation fully earned and justified (as has been done similarly for apples from certain districts) a premium price above the prevailing market could be commanded, demanded and depended upon. All culls and surplus then could be worked up for industrial purposes and the volume of supply probably would warrant the erection and operation of the necessary plants for drying, starch manufacturing and alcohol distilling. The peelings from the dryer and the residue from it and the starch factory, including the water from the latter, could be used by the distillery for the extraction of all remaining fermentable values. Pulp mash from the distillery, and the "slop," could be returned to the growers for stock food in proportion to their contribution of potatoes or their needs, and all that finally remained returned to the ground for fertilizer. In this way every stage of the operation, every pound of potatoes raised, might be made to yield a profit to the growers. This presupposes and includes mutual efforts for the improve- ment in quality and quantity of potatoes grown, and for the combatting and eradication of disease. It might be advisable to grow different varieties especially adapted for baking, frying, boiling, and for high starch content. While this plan would be an experiment in its initial stages it is possible that it might be the solution of many of the present difficulties, disappointments and defeats. UNIVERSITY OF CALIFORNIA LIBRARY This book is DUE on the last date stamped below, liftlfdnlf ' 9S >"*g on first day overdue 483C UNIVERSITY OF CALIFORNIA LIBRARY