tag:blogger.com,1999:blog-2732233837565643303.post7359154014375589531..comments2008-12-08T06:32:59.031-08:00Tim Reardonhttp://www.blogger.com/profile/16108322436759432144treardon@key.netBlogger1125tag:blogger.com,1999:blog-2732233837565643303.post-41507337743825475102008-12-07T23:11:00.000-08:002008-12-07T23:11:00.000-08:00POTATO CONTRACTS TO INCREASE IN 2009<BR/>Food Processor News Network<BR/>December 2008 Special Edition<BR/><BR/>BOISE, ID - French fry processors will pay significantly more for Pacific Northwest potatoes next year as a result of higher input costs.<BR/><BR/>Officials at the J.R. Simplot Co. and ConAgra Foods (Lamb-Weston) recently announced that they have increased contract prices for 2009 crop potatoes.<BR/><BR/>For PNW growers, the new contracts mean an overall increase of about 33 percent in Washington and 50 percent in Idaho for field run potatoes compared with 2008 levels. The greater percentage gain in Idaho reflects lower average yields.<BR/><BR/>J.R. Simplot Co. and Lamb-Weston have indicated that the higher potato contract prices in 2009 are a recognition by French fry makers of the increased prices that potato growers are now paying for fuel, fertilizer and land rental.<BR/><BR/>The cost of growing a full-season russet potato crop in the Pacific Northwest is now more than $4,000 an acre. The 2009 Simplot and ConAgra contracts should bring profit margins in line with the increased cost of production. <BR/><BR/>The 2009 contracts also include increases in compensation to growers for long-term potato storage, reduce the risk of major deductions due to tuber defects, and will increase growers' cash flow position with improvements in the timing of payments.Anonymousnoreply@blogger.com