News Release

PGI testified on negative influence of imported fries

BLACKFOOT, ID — Leaders from the Potato Growers of Idaho (PGI) met with senior USDA officials from several agencies in Washington D.C. Wednesday in a hearing concerning PGI’s petition for assistance under the Trade Adjustment Assistance Act. The main purpose of the hearing was to receive testimony about why PGI claims that the importation of french fries from Canada caused the price of fresh potatoes to fall 30 percent during the 2003 crop marketing season as compared to the average grower price for the previous five years.

PGI President, Doug Hanks said, “We feel very good about the presentation we made. The officials from various USDA agencies were very attentive and engaged in the issues. They had some good questions about several aspects of U.S. potato trade and how growers market Idaho potatoes. They seemed satisfied with the answers and information we gave them.”

PGI Executive Director, Keith Esplin started the hearing off with a presentation that explained how imported french fries from Canada have caused the price of fresh Idaho potatoes to fall. He explained how the opening of a new french fry plant in Manitoba, Canada, along with the closing of the Simplot Heyburn plant and cutbacks at other Idaho Simplot plants caused the fresh market price to fall.

“When Idaho markets were displaced by foreign imports, growers had to chose between going out of business or competing in the fresh market. The high asset investment growers have in raising potatoes makes it almost impossible to stop raising potatoes and continue payments on debts for machinery, storages, and land. Because of this, and the amount of money growers invest a potato crop, long before it is even planted, some chose to plant potatoes after the plant closed and compete in the fresh market.” Esplin added that, “Ultimately competition will decide whether it is a grower in Heyburn or Rexburg that is forced out business by imported Canadian fries.”

Mike Cranney, Oakley, and Mike Telford, Paul, gave impassioned testimony about the devastation foreign imports have caused in their communities. Sheryl Koompin, American Falls, shocked some committee members with the high cost associated with potato production. Ray Hess, Ashton, explained that seed growers had felt the problem all across the state and the problem too. Other PGI growers read letters from University of Idaho economists and helped explain how the issues affected them.

The USDA panel asked about potato exports to Canada and the PGI leaders explained how a process of Ministerial Exemptions and other trade barriers often makes it impossible to export processing or seed potatoes to Canada.

PGI leaders were in Washington D.C. to meet with other growers from across the U.S. at the National Potato Council board of directors meeting. In addition to those named, others helping at the hearing included Klaren Koompin, Kamren Koompin, Shannon Telford, and Wes Wootan.