2-7 IAT Potatoes

A snapshot of potato and nursery markets. 

As always in the world of agriculture some things are up and some things are down and so it is with today’s snapshot report. Michael Stolp, VP-Market Research and Development  for Northwest Farm Credit Services  over in Spokane tells us that things were less than perfect for potato producers but on the other hand nursery and greenhouse operators have reasons to be optimistic.

Potatoes -- Potato markets are weak heading into 2013, pressured by increased production. While contract potato prices are providing growers with profitable returns, open potato prices are well below producers’ breakeven positions. Open market growers have opted to store potatoes, anticipating improved prices this spring. Exports and feed uses are expected to provide additional, but limited market support for the rest of the season.

Nursery/Greenhouse -- Uncertainties in the general economy continue to impact the outlook for nursery producers. However, the industry appears to be on the road to recovery, with most producers expected to show modest profits for 2012. The recovery underway is ‘supply driven’, meaning that opportunities for increased sales come at the expense of those struggling to compete. Additionally, shorter supplies of smaller-sized container and select shade tree inventories are supporting price premiums. Profit opportunities lie ahead for most producers who strategically align marketing efforts with business practices that maintain financial health.