News on Potato Prices from the United States

US Consumers frustrated with historically high potato prices should look for some relief at the checkout lane soon when the late summer and fall crops start hitting store shelves.

In a recently-filed lawsuit, Associated Wholesale Grocers claims that the United Potato Growers of America, United Potato state groups and many potato grower-shippers are illegally setting potato prices.

Idaho potato growers at a Monday meeting in Burley approved processing contracts with J.R. Simplot and McCain Foods that both include payment increases averaging 1.6 percent.

Idaho potato growers will vote Monday in Burley on contracts with McCain Foods and J.R. Simplot Co. paying a 1.6 percent average increase, according to sources involved in negotiations.

An expected surplus of potatoes from Idaho has made the outlook for Washington's fresh spuds dismal. Prices have been depressed even though farmers still are digging up potatoes and are past the height of the harvest season.

Long-sluggish russet markets are beginning to strengthen, and prices should continue to rise as the 2011-2012 deal enters its homestretch this summer. Strong processing demand was beginning to tip the scales in March in what has been a year of abundan...

Idaho potato growers have rejected processors' contract offers, convinced they were insufficient to cover rising input costs and prevention of the emerging disease zebra chip.

Fall potato production in the United States and Canada is estimated at 481 million hundredweight, up 4 percent from 2010. United States fall potato production increased 6 percent to 389 million cwt while Canadian production was 5 percent lower at 91.9 million cwt.

What is the 'right' price for potatoes for processing?
In the classic model price is determined by supply and demand. Several models exist.
But the reality is even more complex.