The Golden Potato!

Potato prices are going through the roof!

Some articles to reference (I picked them from potatopro.com):http://www.capitalpress.info/main.asp?SectionID=67&SubSectionID=618&ArticleID=44834&TM=51257.21 and http://www.potatopro.com/Lists/News/DispForm.aspx?ID=1862&Source=http%3A%2F%2Fwww%2Epotatopro%2Ecom%2FNews%2Easpx

Now, I have to say I have had my fill of high grocery prices as a result of the US ethanol debacle. I am all for "green", but when you use more energy to produce a renewable source than is produced, you are going the wrong direction. And then to have consumers (and taxpayers) ultimately foot the bill for this kind of shell game, you start to get me riled.

Now the problem is spreading to potatoes. Exacerbated certainly by the weak US dollar and the skyrocketing price of petroleum. It is a brave new world, folks, and we need to see how things readjust to fit.

It seems certain that raw potato prices will drive finished goods prices up, or processors will lose interest in their work (reducing supply, which will then certainly drive prices up, uncontrollably). So how do processors respond?

1) Raise prices of their products.
2) Work even harder on projects that improve yield. The higher raw prices get, the better the payback for yield.
3) Move away from potato processing into other, more profitable ventures. Pressure will drive the weaker players from the field.

We need to look closely at how plants are run, investigating every opportunity for efficiency gains. Gone are the days of casually letting product pile up on the floor at spill points, or responding sluggishly to equipment downtime. Those who learn to address these kinds of issues aggressively may be making the difference between profitability, survival or otherwise...

Stumble It!

Bookmark on del.icio.us