PRESQUE ISLE – Potato industry officials expressed optimism Friday about an announcement that two national forces would work together to ensure that potato supply does not exceed demand across North America.
Officials from the Potato Marketing Association of North America said in a press release that they had recently met with the United Potato Growers of America at an industry meeting in Las Vegas. The groups combined the knowledge and experience of PMANA with UPGA’s supply management experience and professional staff to develop a strategic plan to restore profitability to processing contracts.
The combined membership of these two organizations represents more than 80 percent of the potatoes grown in North America, according to the statement.
“Never before have process growers across North America had such a unique opportunity to work together for the betterment of all growers,” Dale Lathim, president of PMANA, said Friday. Members of the association negotiate annual contracts between potato growers and processors.
“Process growers welcome United’s offer to provide services which will enhance the bargaining process,” she continued.
“PMANA and United recognize that all growers, fresh, process and seed, must work together to restore and maintain profitability in all sectors,” added Julia Cissel, UPGA’s chief executive officer.
Vernon Delong, the executive director of the Agricultural Bargaining Council in Presque Isle, was optimistic about the move. Delong said it would “hopefully have an effect on keeping acreage under control,” while also assisting with information flow, analysis and communication.
The bargaining council has been involved with PMANA for more than 35 years, he acknowledged.
“I don’t see any negatives here for us,” said Delong. “This should give United quite a lot of power and help get better crops for growers.”
United Potato Growers of America is an industry group that has organized in 13 states to get better prices for the commodity in North America.
The Maine industry has been looking into joining UPGA for months, but the price of entry is expensive. One of the benefits of UPGA membership is publication of weekly marketing information, which is one aspect Maine growers would like to have.
But farmers fear the million-dollar – and rising – cost of administration of the organization. UPGA is also formulating a plan to buy out acreage to reduce potato production.
Don Flannery, the executive director of the Maine Potato Board, said Friday he also saw some benefits in the new PMANA-UPGA partnership.
“I think that there is always something to be gained by growers sharing information,” he said. “If they can keep acreage under control for another year, I think it will be good.”
Flannery acknowledged Friday that growers have adopted a “wait and see” attitude about whether or not they will join UPGA.
In October, only 32 of the state’s 400 growers showed up at a meeting held to discuss membership in the growing organization. The encounter was an effort of the potato board to get grower input into possibly joining the movement.
“Overproduction of potatoes has mainly been taking place in the West,” Flannery said. “There has been a tremendous decrease in acreage in the East … Maine growers have been reluctant to put money in a pot to buy down acres in other areas.”
In 2005, Maine growers cut their acreage to the same level that it was in 1988. The 55,500 acres planted last spring were down 8,000 acres from the previous year.
The industry as a whole cut acreage by 125,000 acres last year in North America
Flannery said growers will meet again within the next two weeks to discuss UPGA membership.
“As to how involved we get, that’s pretty much up in the air at this point,” he acknowledged.
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