Weekly Potato Report

March 10, 2010

From the Michigan Potato Industry Commission

Potato Market Update by Bruce Huffaker

The potato chip industry seems to be sitting on a ticking time bomb. Some chip plants continue to reject potatoes that do not meet their standards, though dealers are urging them to make the most out of the potatoes that are available in storage. Some buyers believe that growers are holding on to good quality open potatoes in hopes of extracting more than the contract price for them. While that might be a motivation in most years, this year's experience has shown growers that even potatoes that appear to be sound can begin to break down in storage, at an alarming pace. All of the evidence is that growers will not have enough potatoes to fill contract obligations. Michigan shippers are indicating that they will clean up the 2009 storage crop 4-6 weeks ahead of schedule.

Florida growing conditions offer little hope to make up for this year's reduced storage supplies. Heat units are well behind normal, both in central and northern Florida. Dealers may pull down storage contracts faster than usual during the first part of April, in order to give the central Florida crop more time to develop. A quick start to the central Florida harvest would leave a large hole in supplies for the last half of April. Getting chip potatoes from the Hastings district during the last half of April seems out of the question. The crop is just starting to grow now. Dealers indicate that harvest during the first week of May is becoming questionable, due to delays in crop development.

In the fresh market, Michigan packers shipped 70,200 cwt of potatoes during the week ending March 6. That is up from 33,600 cwt a year earlier. Last week's shipments were 67.9% Russet potatoes, and 30.8% 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$4.50 per 50# bale, up from $4.25-$4.50 a week ago. Wisconsin 50-70 count cartons are selling for mostly $6.00-$6.25 per 50# box, up from $6.00 last week. The weighted average price for Idaho Russet Burbanks advanced to $7.90 per cwt, from $7.71 at the same time last week. All of the improvement resulted from higher prices for 40-80 count cartons.

Michigan shippers are selling Round White potatoes for mostly $1.10-$1.20 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, also unchanged for the week. Florida packers are selling limited supplies of size A Round White potatoes for $25.00 per 50# bag.

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