Potato Board concocts strategy to deal with growth

PRESQUE ISLE – Maine potato officials have put together a strategy to help the industry deal with the growth and development it expects over the next few years to accommodate new processing plants.

The strategy, which addresses issues such as acreage, crop rotation and the need for high-tech storage facilities, was presented Friday during a meeting of the Maine Potato Board.

“It’s a case of acting instead of reacting,” said Andrew Yeager, the MPB’s immediate past president, after the plan’s presentation.

McCain Foods Inc. in Easton has started work on a second processing plant next to the company’s first plant. The new $100 million plant is expected to employ 200 people and use 15,000 acres of potatoes.

In addition, Lamb Weston, a french fry maker from Washington state, wants to build a similar plant at the Loring Commerce Centre in Limestone. It is not clear, however, when construction may start since the company extended its option on the property.

According to Donald Flannery, the MPB’s assistant executive director, with the plants operating at full capacity, there is the potential for Maine to plant 93,000 acres of potatoes, almost 30,000 more than the current 65,000.

“This is what potential is out there,” Flannery told the board.

That assumption is based on all the potatoes feeding the plants coming from Maine and only Maine seed being used to plant the crops.

Based on the strategy’s estimates, almost 80 percent of the 93,000 would be used for McCain, Lamb Weston and unidentified potato chip plants. The remaining acreage would be used to produce seed, tablestock and to supply other processing plants.

The industry plan does not expect acreage to jump this year with the 2001 crop, although the amount planted for processing is expected to increase.

About 30,000 acres of the 2000 crop of 65,000 acres was used to make french fries. This year, that amount is expected to jump to 35,000 acres with acreage being taken away from the tablestock and seed segments.

Acreage that has no set use also is expected to decrease, according to the plan.

In 2002, acreage could increase to 77,000 acres with 49,000 acres going to processing. In 2003, those figures are expected to increase from 85,000 planted with 57,000 going to supply the plants.

To prepare for such increases, four committees were formed to study the issues.

“The conclusion of the groups was that the Maine potato industry is in a position for future growth and by utilizing our resources wisely, working together and planning, we can succeed,” said Flannery, quoting the report.

One of the challenges facing the industry is the need for modern storage facilities to keep the crop fresh after harvest while waiting to go to the processing plant. The minimum cost of such storage can be up to $250,000, a large investment for a small farmer, according to Flannery.

A $6 million bond is being considered at the state level and may be part of a larger bond issue tentatively scheduled to be on the November ballot, industry officials said Friday.

The money would be used to recapitalize the Potato Market Improvement Fund, which makes low-interest loans to farmers for building storage facilities. Other state funds should be tapped, such as the state’s Agriculture Marketing Loan Fund, which has money dedicated to the cranberry industry that has not been used, the plan suggested.

Another challenge is the availability of labor, both to harvest the crop and to work in the plants. The use of migrant labor, similar to that employed in harvesting broccoli, should be investigated, according to the strategy. The annual school recess, which allows students to work in the harvest, also should be continued.

“This source of labor continues to be of great importance to the potato harvest in Maine,” the plan said.

The board also needs to work with local technical schools and processors to make sure the plant employees have the training needed, the plan suggested.

Technical issues, such as crop rotation, irrigation, and the need for more research also were addressed by the 16-page document.

Flannery said that the exercise in putting the plan together was beneficial. “I would recommend doing it again next year,” he said.

The plan also has been shared with McCain officials for their consideration.

A MPB member, John Cancelarich of Presque Isle, agreed that the plan should be reviewed on an annual basis.

“These things are no damn good unless you monitor them closely,” said Cancelarich.