The Dec. 1 Potato Stocks report will be released this afternoon. That report will contain a large amount of valuable information for the potato industry. Besides the bottom-line inventory number, the report includes data on processing use. It also will include information on regional stocks and “other” usage. We will provide a complete analysis of the data in this week’s newsletter and a summary in next week's MPIC report.
Frozen processing contract negotiations began last week in the Columbia Basin. Processors over-contracted for the 2024 potato crop. In addition, some growers planted open potatoes intended for frozen processing. Processors across North America have more than enough potatoes to run plants at capacity. However, the Connell, Washington plant has been closed and two plants in Oregon are expected to take extended downtime due to waste water issues. Several other plants are running below capacity. Open-market potatoes have little to no value. Some of the extra supply has been diverted to cattle feed. Growers and marketers are concerned that extra potatoes could be pushed onto the table potato market. Reports indicate that a limited amount has been shipped through fresh market channels, so far. Contract negotiations began this week in the Columbia Basin. Current market conditions have left growers with very little leverage. Contract volumes are expected to be down as much as 10% for some growers. Early indications suggest that prices could be down significantly for the 2025 crop.
Chip potato supplies are up in Canada. Quebec Potato Producers reported that the province held 1.376 million cwt of chip potatoes on Dec. 1, versus 1.088 million cwt a year ago, a 26.5% increase. As we reported last week, Ontario held 4.489 million cwt of chip potatoes on Dec. 1. The combined chip potato inventory for the two provinces totaled 5.865 million cwt. That is 351,000 cwt, or 6.4%, more than year-earlier holdings.
U.S. packers shipped 1.871 million cwt of table potatoes during the week ending Dec. 14. That is down from 2.073 million cwt shipped a year earlier. Michigan packers shipped 34,598 cwt of potatoes during the week ending Dec. 14. That is down from 95,066 cwt shipped during the same week in 2023. Last week’s Michigan shipments were 83.7% russets, 11.9% round whites, and 4.4% yellows.
Michigan packers are selling size A russets in 10-pound bags for $10-$11 per 50-pound bale, unchanged from last week. They are selling size A russets in 5-pound bags for $11-$12 per 50-pound bale, also unchanged. Wisconsin packers are selling size A russet potatoes in 10-pound bags for $9-$10 per 50-pound bale, unchanged from a week ago. They are selling russet 40-70 count cartons for mostly $12-$13 per 50-pound box, also unchanged. The weighted average shipping point price for Idaho Russet Norkotahs is $16.91 per cwt, unchanged from the previous week.
Wisconsin packers are selling 10/5-pound bales of size A yellow potatoes for mostly $15-$16 per bale, up from $14-$16 per bale last week. They are selling 50-pound cartons of size A yellow potatoes for mostly $16 per 50-pound box, up from $14-$16 per 50-pound box a week ago. Red River Valley packers are selling size A yellow potatoes in 2,000-pound tote bags for mostly $18-$20 per cwt, unchanged from last week.
Report by North American Potato Market News