Northwest FCS Potato Market Snapshot

Northwest total fall potato acres planted are slightly lower in 2013 than 2012. High land rents, scarcity of available farm ground and reduced domestic potato prices have contributed to the decline in total potato acreage.
Northwest FCS Vice President of Market Research and Development Michael Stolp shares more from the second quarter results of the potato Market Snapshot.

Stolp: “The Northwest’s open potato market rebounded in May and June, with prices rising from $2 to $5 per cwt. to $6 to $8 per cwt. Reasons for the price rally include reduced packouts, delayed planting of early market 2013 potatoes, and acreage reductions for the 2013 potato crop. Northwest breakeven prices are estimated between $5 and $7 per cwt. Weather conditions are critical for the 2013 Northwest potato crop and market outlook. High summer temperatures coupled with limited availability of irrigation water in Idaho could stress crops and reduce 2013 potato production. Improved growing conditions could strengthen yields and increase production, resulting in decreased prices.”

The Market Snapshot gives this additional overview: A high supply of U.S. potatoes has all, processed potato prices similar to 2012 prices. Meanwhile, the price of fresh potatoes has dropped over 40 percent since last year.

Not surprisingly, large potato supplies are also noticeable at the grocery store, with potato retail prices dipping since 2012.