Simplot and Lamb Weston pay higher price next year for Washington and Idaho Potatoes

J.R. Simplot Co. and ConAgra Foods (Lamb Weston) have both agreed to hefty price increases for 2009 crop spuds, representatives for Potato Growers of Washington and the Southern Idaho Potato Cooperative said.

For growers, the new contracts mean an overall increase of about 33 percent in Washington and 50 percent in Idaho for field run potatoes compared with 2008 levels. The greater percentage gain in Idaho reflects lower average yields.

Growers expect similar terms with the other two major fry processors - McCain Foods and the H.J. Heinz Co., makers of Ore-Ida frozen potato products.

Higher contract prices are a recognition by fry makers of the increased prices that potato growers are now paying for fuel, fertilizer and land rental.