09/05/06 Seeking higher processed spud contracts

Farm and Ranch September 5, 2006 The Potato Marketing Association of North America (PMANA), a potato contract bargaining group with members from the United States and Canada, recently hosted a meeting with growers from other countries during the week of the World Potato Congress held in Idaho, to identify urgent issues facing process growers in those regions. PMANA president Dale Lathim of Washington state, sums up the message to processed growers coming out of those meetings. Lathim: "We are going to do everything we can to try and get an increase in the contracts to cover their increase in the costs of production, which has just been an unprecedented amount this past year with the rise in interest rates and fuel costs. Basically every input they have has gone up significantly and so we are going to make a concerted effort to cover all those costs and keep potato contracts profitable." Historically contract talks with processors begin in December or January but Lathim says the association is already talking to processors and hopes to complete bargaining before a lot of growers have to make final decisions on next year's plans. Lathim: "So the best thing they can do is support us. Not plant. Not make any arrangements. Not do anything until they know what the price is going to be." Lathim says the United Potato Coops have been very successful in getting the fresh side of the industry in order, which has helped on the processing side tremendously and puts process growers in a position to move their contract prices higher. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.