The parable “Acres of Diamonds” tells about a certain South African farmer who heard tales of the riches to be gained by finding diamonds. As a result, he sold his farm and went in search of diamonds. He died decades later having never found the diamonds he wasted his life searching for. It happened that the man who bought his farm noticed an odd-shaped stone in a creekbed that cut through the farm. The stone turned out to be a diamond in the rough, and the farm became the largest diamond mine in South Africa.
Another parable tells why some are unable to see the diamonds that surround them. It tells what happens when a tiny pumpkin growing on a vine is placed inside a jar. Rather than growing to its full potential, the pumpkin only grows to fit the shape of the jar.
Could it be that potato fields are acres of diamonds whose potential is unrealized because some growers’ view of the potato business has been formed in the jar of their own farm rather than through the broader view required to understand the economic forces that control the market price of their farm’s potato production which, when understood and utilized, hold great potential for long-term success?
In potato-producing regions where growers work together to support price, acres of potatoes actually become acres of diamonds, and life is good.
First takeaway: Whatever a particular potato-grower’s farming skills happen to be, it is the potato-market economy at large that will dictate price, hence, the value of his potato crop. Second takeaway: Since potato markets are fed by one large pile of potatoes, it is collaborative management among producers that determines that pile’s value.
The owner of a large potato-packing facility recently exemplified the above case: After remarking how his packing facility produced about $1 profit per every hundredweight run through the shed, he said, “I need that money because my farm loses about that much on every hundredweight of potatoes it produces every year.”
Two questions every businessman must ask himself are: “Where is the money found that will make my business profitable,” and “What are the rules that give me access to it?” The shed owner finds his money in the fee he charges for each package of potatoes run through his packing shed. The rules for the shed owner’s business are simple and easy to understand, but what about the grower? Where is his money found, and what are the rules that give him access to it?
Grower money has only one source: the market. This is, and always has been, the case. What is not the case is general grower understanding of the rules that govern access to that money. Growers who understand and utilize this economic reality have an infinitely more encouraging future to look forward to than those who do not. This is evidenced not only in potatoes, but in lettuce, citrus, tomatoes, pears, broccoli, and on and on. Just as these fresh produce segments have raised fair profit potential by market collaboration, in potato-producing regions where growers work together as they must to support price, acres of potatoes actually become acres of diamonds, and life is good.