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From Cosmetic Reject to Value Stream: The Business Case for “Imperfect” Produce

by T.G. Lynn
16.10.2025
in News
A A
From Cosmetic Reject to Value Stream: The Business Case for “Imperfect” Produce

NoKota Packers Inc. is making a strategic pivot from waste to value with its new campaign promoting “perfectly good imperfect” potatoes. The North Dakota-based company is offering consumers cosmetically flawed spuds that would typically be rejected by traditional retail channels, framing them not as seconds but as a smart, sustainable choice. This direct-to-consumer model, facilitated through an on-site pickup bin and supported by community outreach, aims to recoup value for farmers while educating the public on the realities of food production. As NoKota President Carissa Olsen states, the goal is to “find a home for perfectly good spuds” and generate buzz around waste elimination, with future plans including a ‘pay-what-you-can’ day to address food insecurity.

The scale of the problem NoKota is addressing is monumental. The USDA estimates that between 30-40% of the U.S. food supply is wasted, and a significant portion of that loss occurs at the farm and distribution level due to stringent cosmetic standards. A 2023 study in the American Journal of Potato Research found that depending on the season and market, cosmetic imperfections can lead to the culling of 5-25% of a potato harvest, representing a direct financial loss to growers and a wasteful use of resources like water, energy, and cropland. NoKota’s initiative, as part of the Fresh Solutions Network, aligns with a broader industry trend. Major retailers and food service companies are increasingly setting public food waste reduction targets, creating new market opportunities for “ugly” produce programs in processed goods, animal feed, or direct sales, turning a logistical problem into a potential profit center.

NoKota Packers’ “perfectly good imperfect” campaign is more than a community goodwill gesture; it is a pragmatic business response to a systemic inefficiency. It demonstrates that re-evaluating rigid cosmetic specifications and developing alternative market streams are critical for building a more resilient and profitable agricultural sector. For farmers, agronomists, and engineers, this underscores the importance of innovating not just in the field, but also in business models and supply chain logistics to capture the full value of their harvest and contribute to a more sustainable food system.

Tags: cosmetic standardsCrop Utilizationdirect-to-consumerfarm profitabilityfood wasteImperfect ProduceNoKota PackersSupply Chain Efficiencysustainable agriculturevalue-added
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