Washington state potato growers have settled processing contracts with the J.R. Simplot Co. and H.J. Heinz Co. for the 2008 growing season.
Simplot will pay growers a $240-per-acre "energy surcharge"under the new contract, Potato Growers of Washington executive director Dale Lathim said.
The increase is meant to help offset the soaring cost of fuel and fertilizer.
Other terms and conditions of the new contract will remain the same as under the 2007 contract, Lathim said.
Heinz, maker of Ore-Ida frozen potato products, has agreed to pay 100 percent of the freight out of the Columbia Basin next year. That puts it "in the same ballpark,"as the Simplot contract in terms of an increase, Lathim said.
PGW will meet with Lamb-Weston later this month.
Simplot will pay growers a $240-per-acre "energy surcharge"under the new contract, Potato Growers of Washington executive director Dale Lathim said.
The increase is meant to help offset the soaring cost of fuel and fertilizer.
Other terms and conditions of the new contract will remain the same as under the 2007 contract, Lathim said.
Heinz, maker of Ore-Ida frozen potato products, has agreed to pay 100 percent of the freight out of the Columbia Basin next year. That puts it "in the same ballpark,"as the Simplot contract in terms of an increase, Lathim said.
PGW will meet with Lamb-Weston later this month.
