Weekly Potato Report

January 20, 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

Chip potato markets are quiet. Movement has slowed considerably this month. Dealers are still scrambling to find potatoes that will fry, to fill the available orders. Some have notified customers that they may not have enough potatoes to cover contract obligations. They also are telling buyers that the quality of the remaining potatoes is not likely to be as good as for potatoes shipped during the first half of the storage season.

USDA reports that US potato growers had 10.4% more potatoes in storage on January 1 than they held a year ago. Storage supplies appear to be up from last year in most growing areas, with Colorado and North Dakota being the exceptions. The biggest percentage increases are in Wisconsin (+41.7%) and in Idaho (+15.2%). If the storage numbers for those two states are accurate, they will have difficulty moving the remainder of the crop. Wisconsin is reported to have 5.3 million cwt more potatoes in storage than it did last year. However, Wisconsin growers are not acting as if they face a surplus of potatoes. Idaho growers know that they have a surplus, but the 11.5 million cwt increase reported by USDA, relative to last year, appears to be excessive.

USDA puts Michigan's January 1 potato stocks at 7.0 million cwt. That exceeds year-earlier holdings by 400,000 cwt. December disappearance matched the 1.7 million cwt reported for 2008. Combined shipments of fresh and chip potatoes were very close to last year's pace, but the data do not appear to acknowledge the storage losses affecting this year's crop. That is not only true for Michigan, but appears to be the case in growing areas from Washington to Maine.

In the fresh market, Michigan packers shipped 65,300 cwt of potatoes during the week ending January 16. That is down from 66,000 cwt a year earlier. This year's shipments were 80.7% Russet potatoes, and 17.8% Round White varieties.

Michigan size A Russets are selling for mostly $1.10-$1.30 per 10# bag, unchanged for the week. 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 fell to $8.30 per cwt, from $8.60 at the same time last 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, the same as last 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.