05/17/05 Idaho co-op seeing higher prices

Finally they're getting a break. United Fresh Potato Growers executive director Jerry Wright says growers are starting to see an increase in prices. WRIGHT "The larger sizes the 40 to 70's in the $8.50 to nine dollar range and that's up three dollars just in the last couple of weeks. The smaller stuff, the five ten consumer stuff is still at $2.50 but we expect that to be over three dollars. The reason for the price increase is two fold. First there was the oversupply problem, most of it in Idaho, so the grower co-op got rid of half of the potatoes by turning them into cattle feed. WRIGHT "So when we're done it will be about 3.4 million that have gone to cattle feed this year. The co-op has decided that we wanted to take the rest of the excess potatoes off the market. A couple of weeks ago the co-op went out and bought 3.4 million hundredweight of the excess spuds out of the market. We bought those from members and non-members." Secondly, the co-op initiated a buy-down program. If acreage is down this year and prices remain up Wright says they'll have to just as vigilant next year. WRIGHT "Try to remind everybody nationally as well as in Idaho that one year does not a market make." What started in Idaho has spread across the nation and across the border. That part of the story tomorrow. Today's Idaho Ag News Bill Scott