Washington & Oregon United Potato Growers Cooperative announces acreage cuts
Washington & Oregon United Potato Growers Cooperative announces acreage cuts
OTHELLO, WA -- The Washington & Oregon United Potato Growers Cooperative announced that its members have reduced acreage by nearly 6,000 acres in 2005-06, which is one of the bigger documented cuts (from a percentage standpoint) in the United States.
"We are proud of our members' efforts so far in Washington and Oregon to work together to begin to stabilize the marketplace," Tony Amstad, co-op board member from Oregon, said in a June 13 statement. After several years of low prices and low returns in the U.S. potato industry, we hope that efforts by the WA/OR co-op and other affiliated fresh potato co-ops across the U.S. will help to strengthen the fresh potato marketplace.
In other areas of the United States, United Fresh Potato Growers of Idaho said that its members have planted 26,000 fewer acres of potatoes than they did in 2004. The cuts in Idaho include voluntary reductions by the co-op's founding members, reduced seed potato acreage and acreage removed through the co-op's acreage buydown program. In Colorado, the coop is expecting a 9 percent reduction, which would equate to almost 6,000 acres. Oregon growers in the Klamath Basin are estimating that they have reduced their planted area by 10 percent.
Overall, it is forecast that the United Potato Growers of America and affiliate co-ops across the country will have cut nearly 46,000 acres by the end of 2005. However, United Potato Growers of America cautions the industry that the announced cuts do not include the dynamics of the frozen processing sector, which is forecast to be up slightly this year.
Even if processing potato production increases slightly across the United States in 2005, U.S. potato industry experts are predicting that the net effect of the United Potato Growers of America co-ops' decrease in potato production will tighten fresh potato supplies during the 2005-06 marketing year.
UPGA is now conducting weekly conference calls with all its affiliates to coordinate supply and pricing strategies. Shippers in Washington, Oregon, Idaho and other shipping areas are working together to coordinate August potato movement in hopes that they can avoid clogging the pipeline as several areas bring 2005-crop potatoes to market. Participants in these discussions hope to avoid driving prices to unprofitable levels during the late-summer period. "We haven't ever seen this level of cooperation in the Washington, Oregon, Idaho and U.S. potato industries, Allen Floyd, WOUPGC board member from Washington state, said in the statement. "When growers and shippers work together, positive things happen.
The Washington & Oregon United Potato Growers Cooperative and other United co-ops have made remarkable progress over the past nine months. Since growers first started to discuss the concept in September 2004, the co-ops have grown to encompass a majority of fresh potato growers in areas such as Washington, Oregon, Idaho and Colorado, and have also expanded to include growers in several other areas. Together, the United Potato Growers of America and its member co-ops such as WOUPGC have developed supply-management tools for both current and future supplies.
While the co-ops in the various states face a number of challenges, such as continued stagnant demand for fresh potatoes, efforts to manage supply and pricing are showing promise. Furthermore, the United co-ops have refined efforts to better coordinate the flow of potatoes into the fresh market. As a result, it appears that the efforts should have a positive impact on prices for the coming crop.
"We are proud of our members' efforts so far in Washington and Oregon to work together to begin to stabilize the marketplace," Tony Amstad, co-op board member from Oregon, said in a June 13 statement. After several years of low prices and low returns in the U.S. potato industry, we hope that efforts by the WA/OR co-op and other affiliated fresh potato co-ops across the U.S. will help to strengthen the fresh potato marketplace.
In other areas of the United States, United Fresh Potato Growers of Idaho said that its members have planted 26,000 fewer acres of potatoes than they did in 2004. The cuts in Idaho include voluntary reductions by the co-op's founding members, reduced seed potato acreage and acreage removed through the co-op's acreage buydown program. In Colorado, the coop is expecting a 9 percent reduction, which would equate to almost 6,000 acres. Oregon growers in the Klamath Basin are estimating that they have reduced their planted area by 10 percent.
Overall, it is forecast that the United Potato Growers of America and affiliate co-ops across the country will have cut nearly 46,000 acres by the end of 2005. However, United Potato Growers of America cautions the industry that the announced cuts do not include the dynamics of the frozen processing sector, which is forecast to be up slightly this year.
Even if processing potato production increases slightly across the United States in 2005, U.S. potato industry experts are predicting that the net effect of the United Potato Growers of America co-ops' decrease in potato production will tighten fresh potato supplies during the 2005-06 marketing year.
UPGA is now conducting weekly conference calls with all its affiliates to coordinate supply and pricing strategies. Shippers in Washington, Oregon, Idaho and other shipping areas are working together to coordinate August potato movement in hopes that they can avoid clogging the pipeline as several areas bring 2005-crop potatoes to market. Participants in these discussions hope to avoid driving prices to unprofitable levels during the late-summer period. "We haven't ever seen this level of cooperation in the Washington, Oregon, Idaho and U.S. potato industries, Allen Floyd, WOUPGC board member from Washington state, said in the statement. "When growers and shippers work together, positive things happen.
The Washington & Oregon United Potato Growers Cooperative and other United co-ops have made remarkable progress over the past nine months. Since growers first started to discuss the concept in September 2004, the co-ops have grown to encompass a majority of fresh potato growers in areas such as Washington, Oregon, Idaho and Colorado, and have also expanded to include growers in several other areas. Together, the United Potato Growers of America and its member co-ops such as WOUPGC have developed supply-management tools for both current and future supplies.
While the co-ops in the various states face a number of challenges, such as continued stagnant demand for fresh potatoes, efforts to manage supply and pricing are showing promise. Furthermore, the United co-ops have refined efforts to better coordinate the flow of potatoes into the fresh market. As a result, it appears that the efforts should have a positive impact on prices for the coming crop.
