How Does JR Simplot Company Work?

A significant player in food processing, the company is a leading producer of frozen potato products like french fries and hash browns. It serves major global fast-food chains and the retail sector, including an exclusive agreement for the Ore-Ida brand.

The company is heavily involved in phosphate mining and the manufacturing of phosphate and nitrogen fertilizers. Its Simplot Grower Solutions retail chain provides direct agricultural products, services, and agronomic expertise to farmers across the U.S. and Canada.

Support for the beef and dairy cattle industries includes ranching, cattle production, and feedlots, with services like animal health solutions. The company also offers turf and horticulture products, including specialized fertilizers for professional turf management.

Simplot's distinctiveness lies in combining extensive agricultural experience with ongoing investment in advanced technologies. This includes automation, data analytics, AI, and IoT to optimize resource use and boost crop yields.

Established in 1929, the company's initial significant contribution was supplying dehydrated onions and potatoes to the military during World War II. A pivotal moment arrived in the 1960s with the commercialization of the frozen french fry, leading to a dominant supplier role for a major fast-food chain by the early 1970s. Diversification into fertilizer manufacturing in the 1940s provided a crucial foundation for long-term stability.

In 2022, a long-term agreement with Kraft Heinz designated Simplot as the exclusive manufacturer and supplier for the Ore-Ida frozen potato brand, including facility ownership and capital investment commitments. The 2020 acquisition of Pinnacle Agriculture Enterprises significantly bolstered its Simplot Grower Solutions division. Looking towards 2025, the company announced its intent to acquire Clarebout Potatoes, a move aimed at expanding its global frozen potato presence, particularly in Europe.

The JR Simplot Company has encountered operational hurdles, including supply chain disruptions and market competition. In response, the company implemented restructuring measures, including layoffs affecting over 300 employees in 2024 and further reductions in 2025, alongside facility consolidations like the closure of its Lathrop, California plant due to environmental violations.

Simplot's competitive edge is built on several pillars. Its vertical integration, spanning farming to distribution, offers robust control over costs and quality. A diversified business model across food, agricultural inputs, and livestock mitigates risk. The company prioritizes technological leadership, investing in R&D for crop yield improvement and new product development, such as gene-edited strawberries through a 2021 partnership. Strong strategic partnerships and a global reach across multiple continents further solidify its market standing.

The JR Simplot Company is a leading global supplier in potato processing, holding a substantial share of the North American market. Its diversified business model, encompassing agriculture and food production, strengthens its overall market position and reach.

Simplot faces risks including intense market competition, evolving regulatory landscapes, and supply chain vulnerabilities. Adapting to technological advancements and managing workforce stability through restructuring are also critical considerations.

The company is focused on global expansion, particularly in emerging markets, and product diversification beyond potatoes. Investments in R&D and sustainability are central to its strategy for long-term growth and adaptation.

Key initiatives include expanding processing facilities, exploring new product categories, and integrating advanced technologies like AI and IoT. A commitment to sustainability underpins its innovation efforts.