Cavendish farms reaches deal with its potato growers, faces a 15% production cut

The chair of the P.E.I. potato processing committee says growers are content to have reached a deal with Cavendish Farms for this year.

Scott Howatt said Thursday growers accepted the first offer as they face what appears to be another difficult year.

“What’s going on in the North American potato industry points that we’re going to have another very challenging year,’’ Howatt said.

“Our costs of putting a crop in this year are historically high. We’ve never put in a crop that’s this expensive and, gosh, I hope we never do again.’’

He said processors recognize the situation the economy is in and that the market will be challenging and are prepared to shoulder some of the burden.

Cavendish Farms faces a 15 per cent reduction in volume at the New Annan plant this year.

“Just take your gross cheque and take 15 per cent less,’ Howatt said in reference to the impact on processors. “The overall plant production is going to be down 15 per cent. Some growers are going to see little change to their volume and some growers will see huge changes to their volume.’