b'MARKET NEWSGrowing Costs for Growing PotatoesPotato contract prices are rising for the 2023 growing season to meet climbing production costs.BY: ASHLEY ROBINSONPOTATO CONTRACT negotiations withcould be more potatoes available across processors are in full swing across NorthNorth America in 2023.America with some in the west havingYou cant guarantee that yield increase already been settled. With production costsfrom Mother Nature alone because you on the rise due to inflation and supplynever know what nature is going to constraints, processors are taking thedeal us, Stamper explains. Continued circumstances into account for contractvarietals research and availability of prices. different varieties can impact that and Its always difficult to start. I know inwhat people grow.Idaho, there had been some offers thatThere is concern about ongoing actually one had been voted down, buttightness in the seed potato market. The they were back at the table, Victoriaincreased demand from the processing Stamper, general manager of the Unitedmarket has outpaced growth in the seed Potato Growers of Canada, explains inIts definitely beenpotato market. Stamper adds that it takes a phone interview. Its definitely beena back and forth.a while for the seed market to catch up a back and forth. But the processors doto increased demand, and despite seed understand the difference in the marketBut the processorsgrowers getting more inquiries for seed, since last spring. do understand thethey may still be held back from being In Canada, negotiations start in theable to increase acres.west and then move east. In Alberta,difference in the marketPeople would want to do it because negotiations are wrapping up withsince last spring.theyre getting calls for seed are the Stamper having been told increases togrowers there to be able to do it? They cover higher input costs having beenVICTORIA STAMPER have the same cost that the processing secured. In Ontario good progressor table grower has. So, they have to has been made on the chip processingtake that into consideration to make sure contracts.potatoes in a profitable manner, shetheyre going to get the money for their Despite the contract increases, thereexplains. crop as well, she explains.are still concerns from growers aboutAcreage may continue to rise in AlbertaChanges in fresh potato demand is covering costs and securing the seed theyand Manitoba to cover increased demandalso impacting seed supply. With more need for planting. Stamper has heardfrom processors who have expandedcustomers buying yellow over red from growers that theyre worried aboutcapacity in recent years. It was tightpotatoes in grocery stores, that also ongoing labour shortages, water issues inacross North America in the processingfactors into the changing demand for some regions and land costs increasingmarket for the 2022/2023 crop year withseed. with rising interest rates. processors buying potatoes destined for With labour shortages pushing morefresh markets. growers to automate and invest moreStamper expects growers will consider in automation and equipment, andplanting more fresh potatoes but access the higher interest rates that go alongto land and rising interest rates could with that type of investments theyrehold them back from expanding. The oneVisit spudsmart.com/category/business/markets-definitely concerned and want to makeuncertainty is yields, if acreage is flat butand-pricing/ for regular potato market updates.sure that they can continue to plantgrowing conditions are good then there 48SPUDSMART.COM Spring 2023'