Weekly Potato Report

February 3, 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 markets remain quiet, though there is an underlying sense of urgency to move the 2009 crop. Storage issues continue to mount, though the industry is salvaging as many of the distressed potatoes as possible. High defect levels and color issues are major concerns for chip producers. It is hard to confirm open sales of chip potatoes, though some current movement may be coming from potatoes previously sold on the open market.

Contract discussions for the 2010 crop are under way, though there is no consensus on pricing at this point. Everyone is expecting some reduction from last year's contract pricing. Growers and dealers are hoping to hold the cuts to $0.50-$0.75 per cwt, though they fear that chip producers will be trying to use Florida cutbacks of $1.50 per cwt, or more, as a precedent. Our sources point out that Florida enjoyed larger price increases than the rest of the country, in negotiations for the 2009 crop. They also indicate that gains made in 2009 contract negotiations have been lost due to the increased cullage and rejections of this year's crop, leaving growers in no better financial position than they were in a year ago.

In the fresh market, Michigan packers shipped 76,700 cwt of potatoes during the week ending January 30. That is up from 61,300 cwt a year earlier. This year's shipments were 84.5% Russet potatoes, and 15.0% 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 $4.50-$4.75 per 50# bale, down from $4.75-$5.00 a week ago. Wisconsin 50-70 count cartons are selling for mostly $6.00 per 50# box, unchanged for the week. The weighted average price for Idaho Russet Burbanks inched up to $7.99 per cwt, from $7.98 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 $6.00-$7.00 per bale, down from $6.50-$7.00 at this time last week. Long Island packers are selling 50# size a Round White potatoes for mostly $6.00-$6.50 per 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.

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