Weekly Potato Report

April 14, 2010

From the Michigan Potato Industry Commission

Potato Market Update by Bruce Huffaker

Storage chip potatoes continue to clean up. Chip demand is strong, and very few potatoes are coming out of Florida. The quality of storage potatoes is poor, but chip companies are taking potatoes that would have been rejected 3 weeks ago. They know that any potatoes rejected will find a home elsewhere. The central Florida harvest pace will pick up next week, but chip plants will need to use all of the remaining storage potatoes to keep up with demand. Storage supplies will be depleted by mid-May, at which time the industry will have to rely upon potatoes from north Florida and Texas. Unless the Florida crop comes in better than the trade expects, the industry will run through a lot of acres during the last half of May.

USDA forecasts 2010 spring potato production at 25.6 million cwt. This year's definition of California spring potatoes has changed (the winter, spring and summer crops were combined under the "spring" banner). After adjusting for that change, forecast spring potato production is up 738,000 cwt, or 3.0% above the 2010 crop. However, the forecast raises a number of questions. California has had a good growing season, so the 10.0% production increase for that state is possible, but the harvest of the California "spring" crop will stretch from last November through September. Some of the crop has not yet been planted. The main harvest stretches from May through July, so the crop is a long way from being made.

USDA puts the Florida crop at 7.55 million cwt, down 1.9% from 2009 production. Florida growers planted 200 fewer acres to potatoes this year. The state's average yield is forecast at 244 cwt per acre, down from 266 cwt in 2009. However, Hastings is expected to harvest 2,500 more acres of potatoes this year, because USDA does not anticipate a repeat of last year's flood losses. Nevertheless, the USDA crop forecast appears to be unrealistic, given the losses already being reported in south and central Florida growing areas. Growers in central Florida and Hastings expect extensive yield losses on the first third of their chip crops. Fresh potato shipments are starting to pick up, but shipments for the week ending April 10 were still 65.2% below the 2009 pace.

In the fresh market, Michigan packers shipped 39,700 cwt of potatoes during the week ending April 10. That is up from 36,600 cwt a year ago. Last week's shipments were 80.9% Russet potatoes, and 19.1% 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 $6.50 per 50# box, up from $6.25-$6.50 a week ago. The weighted average price for Idaho Russet Burbanks advanced to $8.75 per cwt, from $8.53 at the same time last week. Idaho Russet prices are at their highest level since early December.

In Maine, 10/5# bales of 2 inch minimum Round White potatoes are selling for $6.50-$7.00 per bale, up from $5.50-$6.60 a week ago. In Florida, new-crop Size A Round White potatoes were selling for $18.00 per 50# sack, down from $25.00 at the same time last week.

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