Acreage down in PEI, but growers anticipate good marketing year
Acreage down in PEI, but growers anticipate good marketing year
"PEI potato acreage is down this year," said Bob Harding, general manager of the Prince Edward Island Potato Board in Charlottetown, Prince Edward Island, Canada. "Acreage is reported at 92,500 this year, compared to 96,000 acres a year ago."
Mr. Harding said that the reduced acreage is due in large part to higher input costs. "The matter of the business itself is that it requires a cost commitment," he said. "And some -- primarily smaller -- producers, have decided to exit the business. Unfortunately, we've had a few years of slim margins, and that takes a toll on growers."
The 2008-09 PEI potato crop is being marketed now, and activity will increase as November progresses. Mr. Harding said prices are higher than they've been in the past few years, which has mostly to do with supplies being more balanced with demand.
Growers, Mr. Harding said, work closely with United Potato Growers of America and United Potato Growers of Canada to determine the demand side of the business, and then adjust their plantings accordingly. PEI potato producers are highly sophisticated at what they do, and can control crop volumes in order to keep a good balance.
In February 2006, grower representatives from the major potato-producing provinces met in Toronto and approved the formation of UPGC. Its goal is to improve the marketing of potatoes through the development of better information and analysis and stronger communications and cooperation among grower organizations across Canada, and with its sister organization, UPGA. Mr. Harding said that all the potato organizations, including the U.S. Potato Board, state organizations and Canadian organizations, work together to keep getting the word out to consumers about the good value and high nutrition of potatoes.
The PEI potato crop faced some challenges during harvesting this year. Mr. Harding said parts of the region received exceptionally heavy rains throughout August and into early September.
"There were some wet conditions in fields, so the more heavily saturated areas were harvested later than normal," said Mr. Harding. "Harvesting generally starts in the summer with early new potatoes, but the goal is for the entire potato crop to be harvested by the end of October. This year we were a couple of weeks behind.
"Growers watch diligently for moisture to make sure what's going into storage is excellent-quality, and that it will come out of storage for shipping in the same condition," Mr. Harding added.
Higher prices are an indication of the balance between supply and demand. Mr. Harding said, "We're not implying there will be a shortage of potatoes in the coming season, but rather that volumes will meet the proper demand." The PEI Potato Board collects consumer information, including reaction to prices, from its retail and foodservice partners. Mr. Harding pointed out that prices are up on all products, and there is always a point where consumers will resist.
"But everyone we are working with understands that prices have to be somewhat higher," he said. "Instead of discounting product, some retailers are spotlighting and promoting potatoes in flyers. Consumers who want potatoes recognize the value and respond to it. The 99 cents deal may be no longer, but potatoes are still moving well according to our partner feedback."
The PEI Potato Board also hears directly from consumers. Every bag or box of potatoes that leaves Prince Edward Island must have the board's toll-free phone number (1-800/565-0280) printed on it, with an invitation for consumers to contact it.
"This helps tremendously with our quality control," said Mr. Harding. "We get a lot of positive calls about PEI potatoes from enthusiastic consumers, and we pass that information back to our growers."
Quality control is taken seriously on PEI, which produces more potatoes than any other Canadian province. Every potato shipped from the island must go through a quality inspection station where all paperwork is checked to ensure that what is supposed to be in the bag is in the bag, and that quality meets the strict criteria set by the PEI industry.
"The inspection station is an extra expense, but it's worth knowing that every potato that is shipped from PEI is a good potato," said Mr. Harding.
The board also maintains the Elite Seed Farm on the island.
"It is owned by the industry and growers," said Mr. Harding. "It conducts research and development on new varieties. Once a variety is accepted, our seed grower then propagates it into a commercial potato. It is a highly secure area because it is the nucleus of potato research."
Potato Quality Institute of Prince Edward Island is also owned by the potato industry. Mr. Harding said it is a world-class lab where disease testing is conducted to support both import and export varieties.
"If a grower wants to import a variety, PQI checks it for disease," he explained. "For export -- and PEI potatoes are shipped to over 30 countries - - it ensures that we meet the destination country's certification standards."
Prince Edward Island, commonly called "Spud Island," is located off Canada's eastern mainland. Approximately 600 growers produce potatoes on its 2,184 square miles. It is the smallest of the Canadian provinces both in size and population. Its potato crop represents about 30 percent of total volume of potatoes grown in Canada, and it draws about one-third of Canada's farm cash receipts on the product. Growers produce primarily russets, round whites, reds and yellows, including Yukon golds. Growers on PEI also produce apples, strawberries, blueberries, carrots and onions.
(For more on PEI potatoes, see the Nov. 17 issue of The Produce News.)
Mr. Harding said that the reduced acreage is due in large part to higher input costs. "The matter of the business itself is that it requires a cost commitment," he said. "And some -- primarily smaller -- producers, have decided to exit the business. Unfortunately, we've had a few years of slim margins, and that takes a toll on growers."
The 2008-09 PEI potato crop is being marketed now, and activity will increase as November progresses. Mr. Harding said prices are higher than they've been in the past few years, which has mostly to do with supplies being more balanced with demand.
Growers, Mr. Harding said, work closely with United Potato Growers of America and United Potato Growers of Canada to determine the demand side of the business, and then adjust their plantings accordingly. PEI potato producers are highly sophisticated at what they do, and can control crop volumes in order to keep a good balance.
In February 2006, grower representatives from the major potato-producing provinces met in Toronto and approved the formation of UPGC. Its goal is to improve the marketing of potatoes through the development of better information and analysis and stronger communications and cooperation among grower organizations across Canada, and with its sister organization, UPGA. Mr. Harding said that all the potato organizations, including the U.S. Potato Board, state organizations and Canadian organizations, work together to keep getting the word out to consumers about the good value and high nutrition of potatoes.
The PEI potato crop faced some challenges during harvesting this year. Mr. Harding said parts of the region received exceptionally heavy rains throughout August and into early September.
"There were some wet conditions in fields, so the more heavily saturated areas were harvested later than normal," said Mr. Harding. "Harvesting generally starts in the summer with early new potatoes, but the goal is for the entire potato crop to be harvested by the end of October. This year we were a couple of weeks behind.
"Growers watch diligently for moisture to make sure what's going into storage is excellent-quality, and that it will come out of storage for shipping in the same condition," Mr. Harding added.
Higher prices are an indication of the balance between supply and demand. Mr. Harding said, "We're not implying there will be a shortage of potatoes in the coming season, but rather that volumes will meet the proper demand." The PEI Potato Board collects consumer information, including reaction to prices, from its retail and foodservice partners. Mr. Harding pointed out that prices are up on all products, and there is always a point where consumers will resist.
"But everyone we are working with understands that prices have to be somewhat higher," he said. "Instead of discounting product, some retailers are spotlighting and promoting potatoes in flyers. Consumers who want potatoes recognize the value and respond to it. The 99 cents deal may be no longer, but potatoes are still moving well according to our partner feedback."
The PEI Potato Board also hears directly from consumers. Every bag or box of potatoes that leaves Prince Edward Island must have the board's toll-free phone number (1-800/565-0280) printed on it, with an invitation for consumers to contact it.
"This helps tremendously with our quality control," said Mr. Harding. "We get a lot of positive calls about PEI potatoes from enthusiastic consumers, and we pass that information back to our growers."
Quality control is taken seriously on PEI, which produces more potatoes than any other Canadian province. Every potato shipped from the island must go through a quality inspection station where all paperwork is checked to ensure that what is supposed to be in the bag is in the bag, and that quality meets the strict criteria set by the PEI industry.
"The inspection station is an extra expense, but it's worth knowing that every potato that is shipped from PEI is a good potato," said Mr. Harding.
The board also maintains the Elite Seed Farm on the island.
"It is owned by the industry and growers," said Mr. Harding. "It conducts research and development on new varieties. Once a variety is accepted, our seed grower then propagates it into a commercial potato. It is a highly secure area because it is the nucleus of potato research."
Potato Quality Institute of Prince Edward Island is also owned by the potato industry. Mr. Harding said it is a world-class lab where disease testing is conducted to support both import and export varieties.
"If a grower wants to import a variety, PQI checks it for disease," he explained. "For export -- and PEI potatoes are shipped to over 30 countries - - it ensures that we meet the destination country's certification standards."
Prince Edward Island, commonly called "Spud Island," is located off Canada's eastern mainland. Approximately 600 growers produce potatoes on its 2,184 square miles. It is the smallest of the Canadian provinces both in size and population. Its potato crop represents about 30 percent of total volume of potatoes grown in Canada, and it draws about one-third of Canada's farm cash receipts on the product. Growers produce primarily russets, round whites, reds and yellows, including Yukon golds. Growers on PEI also produce apples, strawberries, blueberries, carrots and onions.
(For more on PEI potatoes, see the Nov. 17 issue of The Produce News.)
