10/18/06 Processor paying up for spuds

Washington Ag October 18, 2006 At least one major potato processor is paying up to ensure a supply of potatoes for next year. Dale Lathim, executive director of the Potato Growers of Washington, which negotiates with processors for its members, explains what J.R. Simplot has agreed to. Lathim: "The improvement in the contract is significant. It is probably the second best increase that the growers have had in the last 30 years. It equates to about $15 a ton increase in the Russet potatoes over the 2006 contract offer we had rejected from the J.R. Simplot Company and about $10 a ton over the 2006 contract price we did accept from Con Agra and McCain." Lathim says that would mean an average of about 130 dollars a ton for processing potatoes. He expects contracts with other processors will be wrapped by early December as a drop in production has made processors eager to lock up their supplies. Lathim says cool weather in the spring and then two waves of 100 degree heat took a toll on yields particularly in early spuds but he says surprisingly quality is good. Lathim: "This is probably if the highest quality crop, one of the highest quality crops we have had here in the Columbia Basin. " I'm Bob Hoff.