H&N's: Canadian and U.S. growers OK deal

Canadian and U.S. growers OK deal

United Potato Growers of America and the Potato Marketing Association of North America have agreed to work together to prevent a glut of potatoes in U.S. and Canadian markets.

The two organizations also have agreed to work to increase contract prices for process potato growers who have been facing rising production costs.

PMANA is composed of 12 bargaining associations in the U.S. and Canada. United consists of six regional cooperatives, including United Potato Growers of the Klamath Basin, that were organized 10 months ago to manage the supply of fresh potatoes.

Last fall the United board voted to explore ways to also involve chip, seed, and process growers. The combined membership of these two organizations represents more than 80 percent of the potatoes grown in North America.

“Never before have process growers across North America had such a unique opportunity to work together for the betterment of all growers,” said Dale Lathim, president of PMANA, in a press release.

Contract bargaining will continue to be conducted by the various associations in PMANA, and United will facilitate this coordination through its national office in Salt Lake City.

PMANA and United are encouraging process growers to sign only approved contracts in order to raise contract prices. Reduction in supplies of chipping potatoes have already resulted in increases in the value of signed chip contracts of $1.20 to $1.50 per hundredweight for the 2006 crop.

Increased returns for fresh growers have resulted from reduced supplies, due primarily to United’s supply management programs. United has been encouraging co-op growers to reduce acreage to ensure a glut of surplus potatoes will not be grown.