Weekly Potato Report

January 27, 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

Limited open market sales of chip potatoes continue. Our sources indicate that Michigan potatoes are selling for contract price, or slightly less, depending upon quality. In addition, some chip plants are taking contract potatoes that fall below minimum grade standards, at a discount to the contract price. Observers indicate that growers may be selling contract potatoes on the open market, because they do not believe that the potatoes will last long enough to be deliverable on contract.

Concerns about the quality of chip potatoes remaining in storage continue to mount. USDA data suggest that Midwest growers held 12.7 million cwt of Round White potatoes on January 1. That exceeds year-earlier inventories by 3.9 million cwt, or 44.6%. Most of the extra potatoes are supposed to be in Wisconsin. However, our sources question the veracity of the numbers. In addition, they report that many of the chip potatoes in storage are melting down. Defect and color issues are such that many of the remaining potatoes will not fry. Michigan growers indicate that potatoes harvested after October 6 may have a narrow window between when they are reconditioned and when they will start to break down in storage. New York dealers complain that they cannot find secondary markets for the potatoes that do not meet chipping standards, because all of the plants are full.

Florida weather problems are creating additional issues for the chip industry. Harvest is under way on a small deal in Melbourne. However, those potatoes were hit by a series of killing frosts beginning January 6. Therefore, yields appear to be well below normal. Cold, wet weather has slowed crop development in central Florida. The crop may be 10 days behind schedule. In the Hastings area, wet weather has slowed planting progress, and may be causing some seed piece deterioration.

In the fresh market, Michigan packers shipped 75,700 cwt of potatoes during the week ending January 23. That is up from 36,600 cwt a year earlier. This year's shipments were 80.1% Russet potatoes, and 19.4% 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 $7.98 per cwt, from $8.30 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.