Idaho Potato growers agree to modified contracts with Processors

Idaho potato growers have agreed to contract modifications with major processors in an effort to break an impasse with Lamb Weston, a division of ConAgra Foods.

Producers voted Tuesday, March 17, to approve changes in the 2009 contracts during a meeting in Burley called by the Southern Idaho Potato Cooperative.

Growers declined to provide specifics about contract modifications, saying only that changes in price and volume should lead to parity among the major processors that buy Idaho potatoes.

ConAgra, J.R. Simplot Co., McCain Foods and Heinz all approved 2009 contracts with Idaho growers last fall during collective bargaining negotiations, according to growers. The contracts included a significant price increase from 2008.

Three of the companies went to the field with the contract and began signing up growers, but ConAgra didn't honor its commitment, co-op leaders said.

However, ConAgra contends that it didn't agree to a deal with Idaho growers last fall. A spokesman said Wednesday, March 18, that the company is in the process of writing contracts and plans to offer them to some growers in the next two to four weeks.