Sep 3, 2008Idaho Meeting Focuses on USDA Numbers, GAP Audits
Last week’s Idaho Grower Shippers Association meeting in Sun Valley, Idaho, provided Idaho potato growers an opportunity to come together prior to harvest time to discuss transportation trends, legislative issues, the harvest outlook and other issues facing their industry in fall of 2008 and into winter of 2009.
Jerry Wright, United Potato Growers of Idaho CEO, gave a staccato, rapid-fire presentation following Wednesday’s lunch. In a little over 35 minutes, Wright predicted that the current price of fresh weighted average price will remain at its current level of $25 even with current harvest coming in. Wright was critical of USDA’s National Agricultural Statistics Service estimates regarding acres planted, yield predictions and stores on hand. Because the United and the Farm Service Agency numbers were at odds with NASS, Wright said, “In short, no one knew who or what to believe, and that’s precisely the chaos that has plagued our Idaho and national markets for years. Real data – real facts – allow us to make rational decisions.”
Wright said the NASS prediction for the Idaho crop was off by 5.2 million bags and that created a different business plan for everyone. He said there’s too much variability in the numbers and wants to see better accuracy in the forecasts.
“That’s one of the things we want to tighten up as we do a better job of getting data,” Wright said.
“To accurately forecast what we’re going to have in any crop we need accurate acreage estimates and we need a better split between fresh and process, we still don’t have that in the state. We’re closing in on it so that we can understand exactly how many fresh acres there are and process acres there are.”
Wright’s presentation showed a reduction in acres planted for 2008 of 14.3 percent in Idaho and 8 percent in the United States. Every state except Wisconsin showed a reduction, and Wisconsin’s acreage didn’t change from last year.
Though acreage planted is down, and current dig surveys show lower yields, and Wright predicted that there will be an ample supply of quality potatoes and customers, trade and consumers have accepted the higher prices.
Wright also said retail consumption of potatoes was down 4 percent in the second quarter of this year. But United has seen the positive role that promotional advertising plays in increasing retail sales.
“It’s become apparent to me over the last three years that a significant part of what’s moving the Idaho crop is the promotion that’s happening in store,” Wright said.
At the Ag Affairs Committee meeting of the Idaho Potato Commission (IPC) Wednesday afternoon, the two major topics under discussion were the Environmental Protection Agency’s Re-Regulation Decision (RED) for metam sodium. EPA is writing up new regulations requiring increased buffer zones that cannot overlap. Participants at the meeting seemed resigned to the buffer zone requirements but are appealing to the EPA to review and shrink the proposed sizes of the buffer zones. Comments on the proposed regulations are due by Sept. 15 but a 45-day extension is anticipated.
Unannounced audits by the Idaho State Department of Agriculture under USDA certification for Good Agricultural Practices (GAP) compliance came under heated discussion during the afternoon meeting. Discussion centered on the new rules USDA will release on unannounced audits. Because the new rules have not been released, farmers wanted to know what action they could take at this time. They were advised that they don’t have to allow the audits or sign up to allow the audits, but at the same time processors cannot buy from farmers who aren’t GAP certified.
Following the GAP discussion, the committee discussed briefly the migrant labor issue. Klaren Koompin, chairman of the Ag Affairs Committee, suggested that the IPC research the possibility of joining forces with the Idaho Dairy Association thereby increasing their lobbying strength through a unified effort.
-By Bill Schaefer, Idaho Editor
