Numbers on Potatoes

 First of all, and before we get rolling, let’s make it clear that as we discuss the potato crop, we’re talking 2009…as in, the crop that is presently in the ground. Recent reports have confused 2008 with 2007 and 2009. I called Jerry Wright, CEO & President of United Potato Growers of Idaho for an update on the 2009 crop and believe me, this guy is on top of things…almost to the extent that your head starts reeling with all the numbers. Listen: We counted last year 300,266 and this year we’ve counted 314,981 potato acres. So round that to 315,000 acres we have 15,000 more acres this year in potatoes than we had last year. That’s a 4.9% increase. That is the bad news. It’s bad because statistically, every percentage increase that you have in the potato crop, from a balanced standpoint,  you have aboutv a 7% decline or increase in pricing. So a 7% decline gives you a 1% increase in pricing a 7% increase gives a 7% decline. The good news is that 10,000 of those acres are contracted to dehydrators. What that means is, they’re not gonna’ come into the fresh market so they were actual acres that dehydrators needed. We have about 5000 that are truly open and I think we can deal with that.