Weekly Potato Report

January 13, 2010

From the Michigan Potato Industry Commission

Calendar of Upcoming Events

February 16-17, 2010 – Winter Potato Conference/Variety Day – Mt. Pleasant Comfort Inn & Suites

*Please see the United States Potato Board’s

NEW Potato Nutrition Handbook on the MPIC homepage*

Potato Market Update by Bruce Huffaker

Chipstock movement is starting to slow, as the industry moves into the January-February doldrums. Volume could pick up ahead of the Super Bowl, but growers and dealers are concerned that there may not be enough movement to allow them to keep ahead of storage problems. The best potatoes have been shipped, with most remaining potatoes having been harvested in cold, wet conditions. Efforts to recondition those potatoes may be accelerating wet breakdown and other quality issues. Dealers worry that they may not have enough orders for the next six weeks, and that after that they may not have enough potatoes to fill orders. While Michigan still has a lot of potatoes in storage, there are enough that will not fry to tighten up supply conditions until the shift to new-crop supplies is complete. Growers may be willing to sell some open potatoes at contract prices, but we are not aware of open sales at any price. Chip plants are interested, but are hoping to make purchases at lower levels.

Canada had approximately 63.8 million cwt of potatoes in storage on January 1. That exceeds year-earlier holdings by 0.7 million cwt, or 1.1%. This year's data may not be fully comparable with last year's inventory numbers, particularly from New Brunswick. What seems to be clear is that heavy cullage is reducing inventories in several Canadian provinces. Ontario growers held 4.11 million cwt of potatoes on January 1. That exceeds year-earlier holdings by 80,000 cwt. However, chip potato holdings are down by 219,000 cwt, or 8.6%. December chipstock disappearance was exceptionally heavy. Our sources indicate that much of the extra "usage" resulted when growers dumped potatoes that would not chip. Elevated cullage rates are likely to continue through the remainder of the season, albeit at a a slower rate. Were disappearance to continue at the December rate, Ontario's chip potato supplies would be gone before the end of March.

Florida experienced several frost events that will impact potato production over the past 10 days. Most central Florida chip potatoes were about to emerge. No serious damage is reported, but the cold weather is delaying crop development, and could slow the start of the 2010 harvest by 7-10 days. Red potato crops in south and central Florida were burned back, with vines frozen to the ground is some areas. Potatoes for February shipment would have been top-killed within a few days, so losses will be minimal. However, those slated for March shipment suffered losses that could exceed 50% of production. Some may not come back at all. Frost damage is much more severe than it was last year.

In the fresh market, Michigan packers shipped 64,300 cwt of potatoes during the week ending January 9. That is up from 61,700 cwt a year earlier. This year's shipments were 77.8% Russet potatoes, and 21.5% Round White varieties.

Michigan size A Russets are selling for mostly $1.10-$1.30 per 10# bag, down from $1.30-$1.40 a week ago. In Wisconsin, packers are selling non Size A Russets in 10# bags for mostly $4.75-$5.00 per 50# bale, unchanged from week-earlier levels. Wisconsin 50-70 count cartons are selling for mostly $6.00 per 50# box, also unchanged for the week. The weighted average price for Idaho Russet Burbanks held steady this week, at $8.60 per cwt again this week.

Michigan shippers are selling Round White potatoes for mostly $1.20-$1.30 per 10# bag, unchanged for the week. In Maine, 10/5# bales of 2 inch minimum Round White potatoes are selling for $6.50-$7.00 per bale, unchanged from last week. Long Island packers are selling 50# size a Round White potatoes for mostly $6.00-$6.50 per 50# bag, unchanged for the week. They are selling large potatoes for mostly $6.25-$6.75 per 50# bag, also unchanged.

This weekly newsletter has more complete potato market information. For subscription information call (208) 525-8397, fax (208) 525-8569, write PO Box 135, Shelley ID 83274, or e-mail napmn@napmn.com.

This Weekly Potato Report includes current Michigan grower issues, in depth market news, and other time sensitive information. This report contains market sensitive information and your candor in using this information is appreciated. Your comments and suggestions are vital to improving this report and other services.

If you would like to receive this report either by E-mail or Fax, please call the MPIC office at 517-669-8377, Fax: 517-669-1121, or Email: info@mipotato.com. For the MPIC gateway web page, go to http://mipotato.com. The WPR is updated weekly on Wednesday afternoon.