10/19/06 Two SIPCO contracts, two to go

The Southern Idaho Potato Cooperative has agreements with two major processors for the 2007 crop. Executive director Dan Hargraves says the JR Simplot Company and Heinz have already agreed to pay growers more than the traditional $4.50 to five dollar per hundredweight. HARGRAVES "The contract values for '07 are up about eight to 14 percent above that depending on the variety." Hargraves says SIPCO growers made early contract ratification a priority and he praised Heinz and Simplot for making it all happen last month. HARGRAVES "And I think doing the right thing in letting these guys know what the economics are going to be and putting forth a pretty good increase to help offset this energy inflation that we're all getting stung by not just growers but all of us." SIPCO negotiates with two other potato processors, McCain Foods and ConAgra Foods. Hargraves is hopeful that agreements with both of them can be reached this year and along the same lines at the Simplot-Heinz contracts. If the weather holds up the harvest in eastern Idaho will be completed in the next couple of days. Voice of Idaho Agriculture Bill Scott