Partner Seminar

Potato Industry holds Partners Seminar.

The United Potato Growers of Canada held a partner’s seminar in Charlottetown recently to brief industry representatives on the upcoming growing season.

Similar meetings were held in other major potato growing areas in North America. Over 100 growers, dealers, lenders and other industry members attended the Island session. Ray Keenan, a long time member of the Island industry and chair of United Canada, recapped United’s mission to improve the marketing of potatoes by developing better market information, and stronger cooperation between grower organizations. The Partners Program allows the organization to minimize the cost to growers of gathering and distributing market intelligence. Bayer CropScience Canada, Farm Credit Canada and John Deere help provided support for the session.

Cary Hoffman’s presentation emphasized the hard facts the potato industry must face, namely people are still eating potatoes, but not as often as they once did. Eating habits have changed and 66% of in-home meals are one-dish, often leaving out side dishes such as potatoes.

The president of Syndex Corporation, a growing and packing operation south of the border, suggested five steps to add value and build growth for fresh potatoes: increase perceived market value; emphasize comparative economic value; make fresh products easy and convenient; expand usage occasions and improve or add new tastes.

Hoffman agreed the large crop in the U.S., fueled by increased acres planted by non-United growers, was causing low prices in this marketing year. He cautioned the Quality Enhancement Program that was supposed to take place in the U.S. to reduce the volume going the packing sheds would probably not have a great effect since low prices are sometimes incentive enough to reduce shipping.

He encouraged growers to be as concerned about marketing the  crop as growing it. “This is why United was formed,” said Hoffman, who is also Chairman of the Supply and Demand Committee of United Potato Growers of America, “We have information available to us through the United effort that we have never had before and we should be using this information to guide our decisions.”

Dale Lathim also had some sobering information for the meeting. He is executive director of the Potato Growers of Washington and president of the Potato Marketing Association of North America.

He told those at the meeting, frozen product accounts for 44% of potatoes eaten in the U.S. and that figure has been declining since 1996. Lathim added the 18-34 age groups have been hit hardest by the recession and they represent 28% of french fries sales. As well, he said European French fry capacity has increased, and many companies are doing more local sourcing in markets such as India and China.

Lathim did have several positive comments to make about 2009: contract returns were up in all areas; the number of areas with acreage contracts increased and there was improved communications between negotiating groups in New Brunswick, Maine and Prince Edward Island.

The seminar concluded with an update on the PEI 2009 Cost of Production update conducted by Beaton Fitzpatrick Murray.