News Release

Potato Processor Refuses to Add Value to Contract

BLACKFOOT, ID — Potato growers are strongly advised to carefully evaluate processing contracts being offered for the 2001-growing season. Throughout several months of negotiating with Lamb Weston, a Potato Growers of Idaho (PGI) committee stressed the increasing costs of fertilizer, fuel, power and several other factors that are expected to drive the cost of producing potatoes up to nearly $2,000 per acre this year. Nitrogen-based products are expected to cost 30 percent more this year. Fuel and petroleum based chemicals are projected to cost 20 percent more this year and power costs are likely to increase by 25 to 50 percent.

However, Lamb Weston officials were unwilling to add any real dollars or bottom line value to the contract and the two groups could not come to agreement. PGI officials refused to approve the proposed contract and Lamb Weston officials stated that they would take the contracts to the growers in spite of the fact that the contracts are unapproved by the grower group.

The contract that growers will soon see does include a base price increase. However, money was taken away from some incentive clauses and added to the base price, resulting in no overall increase in contract value.

PGI advises growers, bankers, fertilizer dealers, landlords, and anyone else with a financial interest in the 2001 crop to be very cautious of the language changes and value of this contract. This contract has not been proofread or approved. Growers are advised to consult with their attorney about the terms and conditions in the contract before signing.

This issue will be discussed in more depth during two meetings next week. Meeting dates and times are as follows: Monday, Feb. 19, 9 a.m., King Fine Arts Center, Burley High School, and Wednesday, Feb. 21, 10 a.m. Blackfoot Civic Auditorium. For more information contact PGI at 208-785-1110 or 208-681-7441.