Weekly Potato Report

February 24, 2010

From the Michigan Potato Industry Commission

*Please see the United States Potato Board’s

NEW Potato Nutrition Handbook on the MPIC homepage*

Potato Market Update by Bruce Huffaker

Storage losses continue to mount in the chip potato industry. No one knows how the chip industry will deal with the shortfall, but growers and dealers are notifying their customers that they do not have potatoes that will hold through the contract end dates. Florida crop development continues to lag, due to the lack of heat units. Hastings growers covered potatoes last weekend, and may have to do so again later this week, to protect against frost.

USDA reports that the 13 storage states had 203.4 million cwt of potatoes in storage on February 1. That exceeds year-earlier holdings by 19.5 million cwt, or 10.6%. Stocks are up from last year in 8 of the 11 states that reported stocks individually. Colorado, Montana, and North Dakota had fewer potatoes in storage than they did a year ago. In addition, USDA combined data on stocks for Minnesota and New York, because the remaining the percentage of Minnesota potatoes held by one grower exceeded USDA's confidentiality limits. Those combined stocks were down 2.5% from year-earlier levels.

USDA puts Michigan stocks at 5.2 million cwt. That exceeds year-earlier holdings by 400,000 cwt, or 8.3%. However, there is strong evidence that the USDA stocks data are not accounting for all of the storage losses happening this year. Those losses are reducing supplies that will be available for the remainder of the season, not only in Michigan, but across the US. Nevertheless, they will not be sufficient, on themselves, to eliminate the surpluses that are facing the fresh and processing sectors of the industry.

In the fresh market, Michigan packers shipped 66,700 cwt of potatoes during the week ending February 20. That is up from 32,200 cwt a year earlier. This year's shipments were 71.2% Russet potatoes, and 28.8% 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 $4.25-$4.50 per 50# bale, down from $4.50-$4.75 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 slid to $7.42 per cwt, from $7.53 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 $5.50-$6.50 per bale, down from $6.00-$7.00 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 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.