Weekly Potato Report

March 24, 2010

From the Michigan Potato Industry Commission

Potato Market Update by Bruce Huffaker

Supply issues continue to mount for the chip potato industry. Michigan dealers are reporting that they will have even fewer potatoes left to ship than they anticipated at the beginning of March. Snowdens are starting to age. Sugar levels are rising, and more potatoes are being rejected for color. New wet spots are developing in bins. The losses will make for a complicated transition to the 2010 crop. Chip plants may be willing to reduce quality standards to maintain production. We already are picking up reports of potatoes being rejected at one plant, only to sell for contract price at another.

Florida crop development remains slow. The start of the central Florida harvest may be delayed by 10 days, or more. Even then, the trade is not expecting a stellar crop. Our sources also indicate that the north Florida harvest will be delayed. It could be the middle of June before the supply situation is straightened out. The jury is still out as to whether delays along the Atlantic Seaboard will result in reduced production, or whether the delays will only impact harvest timing, and not yields. If yields are not affected by the delays, the end result could be a glut of potatoes later in the summer.

In the fresh market, Michigan packers shipped 58,400 cwt of potatoes during the week ending March 20. That is up from 25,400 cwt a year ago. Last week's shipments were 63.4% Russet potatoes, and 35.6% 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 per 50# bale, also unchanged for the week. Wisconsin 50-70 count cartons are selling for mostly $6.25-$6.50 per 50# box, unchanged from last week. The weighted average price for Idaho Russet Burbanks advanced to $8.23 per cwt, from $8.10 at the same time last week.

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. In Florida, limited supplies of Size A Round White potatoes were selling for $25.00 per 50# sack.

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