09/07/06 Seeking contracts that cover costs

Historically the talking starts in December or January. However, the Potato Marketing Association of North America is already talking to processors about contracts for next year. PMANA President Dale Lathim of Washington State says they'll be looking for an increase in the contracts to cover the increases that growers faced this year because of higher fuel prices and interest rates. Lathim says they want to have contracts in hand before growers have to make final decisions on next year's planting. Lathim says the United Potato co-operatives have put the fresh market side of the house in order and that has helped the entire industry. LATHIM "In the past there's always seemed to be a surplus of fresh potatoes which kept their price down. The surplus was coming over into our processed market. Even when that didn't happen there were fresh growers who were losing so much money on the fresh side they were looking for anything to make money so they were competing with our processed growers trying to get contracts." Lathim says there are some who still doubt the effectiveness of the United co-ops. LATHIM "If they cannot see now the value and benefit of these organizations and what they're doing for the growers then they never will." United Potato Growers are being urged to hold the line on plantings next year and not assume that growing a few more potatoes won't hurt anyone. United insists that going back to the 'old ways' will lead to overproduction and that kills potato prices. Today's Idaho Ag News Bill Scott