Idaho potato growers approved contract with McCain Foods

Idaho potato farmers who sell to McCain Foods have agreed to a contract that maintains roughly the same pricing as last season, said Dan Hargraves, who negotiated on their behalf as executive director of Southern Idaho Potato Cooperative.

A majority of SIPCO’s McCain growers approved the contract during a March 3 meeting in Burley.

“Essentially, it’s the same pricing as last year,” Hargraves said. “There were some slight modifications to the pricing on some of the new varieties to bring them more in line with the existing varieties like Ranger Russets and Russet Burbanks.”

The contract sets the field run price — based on the weight of a load minus dirt without factoring in cull potatoes — at $7.60-$7.80 per hundredweight for Burbanks, depending on the growing region.

“I think it’s fair to both the growers and McCain,” said McCain spokeswoman Calla Farn. “I think both parties also did research going in about the input costs. That’s why we reached an agreement that is right for both parties.”

SIPCO members are scheduled to vote on March 11 on contracts with Lamb Weston and J.R. Simplot Co. The two processors have maintained in negotiations that growers’ input costs will be down this season, Hargraves said.

Hargraves explained SIPCO gave McCain price protection, meaning if the cooperative approves contracts for a lesser amount with either Simplot or Lamb Weston, McCain will be entitled to the same rates.