Idaho Potato contracts up in the air

As Idaho potato farmers wrap up harvest, many are uncertain about french fry processing contracts for next year.

A shake-up in Idaho fry contracts occurred last winter after Lamb Weston, a division of ConAgra, failed to follow through with a contract that the Southern Idaho Potato Cooperative had negotiated with major processors under a collective bargaining process.

ConAgra instead went to the field with a different deal, offering select growers either joint-venture agreements or three-year contracts, grower representatives said.

ConAgra has no reason to participate in contract negotiations this winter, and the other major processors -- J.R. Simplot Co., McCain Foods and H.J. Heinz -- don't seem to be in any hurry to negotiate a 2010 Idaho contract, according to industry officials.   The contract situation in Columbia Basin appears to be a little more certain than in Idaho.

Earlier this year, Potato Growers of Washington settled a two-year contract with the major processors for 2009 and 2010, so there won't be any need to negotiate a whole new contract this winter, said Dale Lathim, Executive Director of the Potato Growers of Washington. The 2010 contract should be the same as this year's except for some cost-of-production adjustments, he said.

[In a later article Dale Lathim was more specific: "...contract negotiations are ongoing for the 2010 crop and final deals should be reached in January".]