Process potato growers accept Cavendish Farms contract

Cavendish Farms process growers voted to accept the company’s 2010 contract offer with overwhelming support despite an agreed upon cut in the base price at the end of the season.

About 100 growers cast ballots in the recent secret vote and the offer — calling for a 25-cent drop in the hundredweight (cwt) base price — was accepted.

Cavendish Farms already eliminated about 15-20 growers from its roster and made it clear that consumption drops in processed potatoes are still making it a tricky marketplace to negotiate.

Contract agreements settled in Idaho, Oregon and Washington saw growers offer to lower their prices to reflect the clinging effects of the recession.

“The contract offer drew strong support, so I guess that’s indicative that growers understand the situation and will ride things out,’’ said New London grower Leslie MacKay.

“The economy will turn around again and consumption will go up again, but this is a step that had to be taken this year.”

Other growers confirmed it wasn’t a bad deal and is reminiscent of the 2008 contract agreement. The actual 25-cent cut is applied to the base price that varies throughout the year and can hover from $7 in the fall to as much as $9 in the spring.

Cavendish Farms confirmed it is not cutting back on the overall volume and growers were advised the company will need even more for the processing lines.

As well, the company will reduce the price on Prospect potatoes — a Cavendish variety — by $1 a hundredweight since that variety historically yields much higher volumes.

Growers were advised the company will once again follow an indexing agreement established last year that sees the company cover any sudden spikes in costs from fertilizer to machinery or fuel costs for example.