My grandparents owned a food processing business until the early 90s. One of their main businesses was slicing potatoes to be used in grocery store potato salad.
They had a room dedicated to removing eyes before running them through the peeler.
From the stories I've heard they'd use anything. Potatoes where half the bag is rotten mush, sure. Rotten potatoes where the sprouts have big enough spuds to process, use the sprouted spuds.
I think those were the extreme cases, since they're stories I've heard, but I doubt any similar facility isn't cutting out eyes and processing them today.
They had a room dedicated to removing eyes before running them through the peeler.
From the stories I've heard they'd use anything. Potatoes where half the bag is rotten mush, sure. Rotten potatoes where the sprouts have big enough spuds to process, use the sprouted spuds.
I think those were the extreme cases, since they're stories I've heard, but I doubt any similar facility isn't cutting out eyes and processing them today.