Basic American stops potato production at Shelley plant

SHELLEY –Shelley’s skyline changed for the first time in 63 years on Wednesday, February 23 as no steam could be seen rising above the Basic American plant during its work season.

Basic American Food (BAF) has finally shut down its dehydrated potato line at Shelley and has moved its operations to the Blackfoot facility.  However, the Shelley plant will continue to package processed potatoes transported back to it by truck.

“We will still continue to package at the Shelley facility,†BAF Vice President, General Counsel Jennifer Anderson said.  â€œThe facility will also be used for storing potatoes and warehousing finished product.â€

The plant’s pending closure has been known for several years.  The Idaho State Journal reported in August of 2019, “Basic American Foods plans to phase out over the next two years its production at both the Blackfoot and Shelley facilities.†

The plant employed approximately 200 people when it announced its closure in 2019.  “Many of those employees have now retired or have been moved to other jobs in the company at Blackfoot or Rexburg,†Anderson said.

BAF operates several potato processing facilities in eastern Idaho.  It has a large processing plant in Blackfoot and Rexburg.  It has a large distribution warehouse in Idaho Falls. 

LOSS TO SHELLEY

The closure of the processing plant will cost the city of Shelley a 200-employee base that shopped locally.  It will also affect the city’s budget as the plant’s assessed value and tax revenue will be lowered.

“We had the Idaho Tax Commission walk-through the facility last year to make an assessment,†Bingham County Assessor Donavan Harrington said.  “BAF had portions of the drying and other processing equipment cordoned off by a chain-linked fence. Shelley will see a significant loss in revenue, but it will be offset for the county by the new equipment and improvements at Blackfoot.â€

The southern portion of the BAF Complex at Shelley will continue to operate as a fresh potato storage and storage for packaged products.  A large 160,000 square foot distribution warehouse is one of the largest building at the facility’s campus.

“It will have an impact on the city, Shelley Mayor Stacey Pascoe said.  “But most of the people who worked there are retiring or have retired.   A few individuals left will have jobs at the other facilities.† We will lose some revenue, but I’m sure it is a benefit to the company because the plant was outdated.†

HISTORY OF THE SHELLEY PLANT 

The facility operated for 63 years and provided a lifetime career for many people who lived in Shelley.  RT French Company constructed the plant in 1958.

According to the finding of facts in an Internal Revenue dispute in 1973, RT French, headquartered out of Rochester, New York, began the process of creating a granulated potato that was dehydrated and then reconstituted as mash potato with milk and water.  The process came from a patent in Europe that was expanded at French.  

In 1946, they constructed a potato dehydration plant, in Rochester to process potatoes, which carried on to 1952.  “By then it had become apparent that the variety of potato grown in that part of the country was not particularly suited to [their patented] process and that a more acceptable product could economically be made from Idaho Russet potatoes. French accordingly discontinued operations at Rochester and entered into a subcontracting arrangement with the J.R. Simplot Co., whereby Simplot would take over the manufacturing of granules in Idaho with French’s equipment and expertise,†according to the lawsuit.

In 1957, French’s constructed a potato facility in Shelley, which was completed in 1958. French’s produced instant mash potatoes from the plant until 1985 when it sold it to Pillsbury. 

Pillsbury operated the plant from 1985 to 1998 producing granulated potatoes from the plant under the Hungry Jack label, according to an article in the Los Angeles Times, dated December 11, 1998.  They distributed a large portion of that brand to KFC. 

“Pillsbury then sold the Shelley plant for an undisclosed price to Walnut Creek, California-based Basic American Foods,†according to the Times article. 

Basic American Foods used Shelley and its other facilities to produce some of its classic brands, including Brilliant Beginnings, Potato Pearls, Golden Grill, Classic Casserole, Santiago, and Idaho Spud, the Idaho State Journal article said.