Reasoning Behind Basic American Foods Lays Off Questioned by United Potato Growers of Idaho

Basic American Foods announced it will be closing part of its Shelley plant, one of three facilities the business has in Idaho.

Their reasoning they say is the downturn of the economy, the high cost of Idaho potatoes and the loss of sales volume.

However we talked with the United Potato Growers of Idaho who say the spud business is growing.

The United Potato Growers of Idaho say even in this tough economy, dehydration products are up.

"In the third quarter they were 9% and year to date they're up 6% in sales. That's led principally by Idaho branded dehydration products which for four years in a row have been outpacing all other brands,"Jerry Wright, CEO of United Potato Growers of Idaho.

The goal? To make sure supply doesn't outnumber demand.

Wright says many companies within the industry are adjusting the way they do business.

"All aspects of the dehydration industry have over the past couple of years made significant cut-backs as they try to right size their businesses to match the real demand out there,"Wright explained.