Weekly Potato Report

January 16, 2008

From the Michigan Potato Industry Commission

 

The Renewable Energy and Energy Efficiency Program Fact Sheet is available on the MPIC website (under the News tab at the top of the homepage or click the link to take you there directly).  If you would like a hard copy please contact the MPIC office.

 

Calendar of Events
Winter Potato Conference – February 6-7, 2008 – Ramada Inn

(Formerly Holiday Inn), Grayling

Please return your registration form by January 7th.  You can find the registration form in the NewsLine or by contacting our office at 517-669-8377 or email info@mipotato.com

Snaxpo 2008 – March 1- 4 – San Antonio, Texas

USPB Chip Seminar 2008 – March 5 - 8 – Orlando, Florida

 

Potato Market Update by Bruce Huffaker

A few Michigan chip potatoes continue to move through open market channels at $8.50 per cwt. Dealers indicate that it is hard to find potatoes at those prices. Some dealers report that contract movement is slowing down, while others are reporting steady sales. As February approaches, we are likely to see a seasonal decline in shipments.

Contract talks for 2008 chip potatoes are in the early stages. Prices for other commodities, such as corn and soybeans, are top of the mind topics for potato growers. The growers need higher prices to cover rising production costs, but the opportunity to profit from other crops may be the biggest factor in allocating 2008 acreage. Some growers believe that they need to see chip potato contract prices move up $0.75 per cwt, in order to make it attractive to grow the crop. Growers cite the lower production costs, and more limited risk involved in growing the other crops as factors that they will consider as they make 2008 production decisions.

North American Foods (formerly RDO Foods) has announced that it will close its Grand Forks ND potato flake plant on March 15. The plant will finish processing the raw potatoes that it owns in mid-February. The remainder of the time will be spent shipping finished product and closing down the facility. The plant used about 3.6 million cwt of potatoes a year. It was an important secondary market for chip potatoes. Losing the facility will make it more difficult for Red River Valley chip potato growers to compete in chip potato markets.

In the fresh market, Michigan shippers are selling storage Round White potatoes for $1.25-$1.30 per 10# bag, unchanged from last week. Long Island shippers are receiving $5.00-$5.25 per 50# bag for Size A Round Whites, unchanged for the week. Long Island chefs are selling for mostly $5.25-$5.50 per 50# bag, also unchanged. Maine growers are selling 2 inch minimum Round Whites for mostly $0.95-$1.10 per 10 # bag, unchanged from last week.

Size A Michigan Russets are selling for $1.25-$1.40 per 10#, unchanged for the week. Wisconsin shippers are receiving mostly $6.00-$6.50 per 50# bale for non Size A Russet potatoes, unchanged for the week. Wisconsin prices for 60-70 are $10.00-$10.50 per 50# carton, up from $9.50-$10.00 a week ago. The weighted average shipping point price for Idaho Russet Burbanks inched up to $15.12 per cwt, from $15.10 a week ago.

This weekly newsletter has more complete potato market information. For subscription information call (208) 525-8397, fax (208) 525-8569, write PO Box 3112, Idaho Falls ID  83403, 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.