Potato prices will have to increase due to high production costs or US potato growers will go out of business, Alvin J Bussan Department of Horticulture, at the University of Wisconsin-Madison, said.
Figures from the US National Agricultural Statistics Service (NASS) released at the end of last month showed that potato prices have already seen large increases. In June 2008 they were $10.37 per 100 pounds, compared to a month earlier, in May when prices were $9.16 and in June the previous year they were $7.75.
Bussan said: “Production costs for potatoes are 1.5 times higher this year than in 2007 and costs of production are projected to be two times as high for growing potatoes in 2009 than 2007.
“Increased costs are due to higher land, fuel, equipment, fertilizer, and other input costs. Without price increases potato growers would grow potatoes at a loss.”
“Potato price will have to increase due to the high production costs or US potato growers will go out of business.”
