BusinessMarkets & PricingProcessing Contract Prices Down

Processing Contract Prices Down

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Lamb Weston has given its final offer to Washington potato growers for the 2021 processing crop with contract prices cut by three per cent compared to last year, the March 10 issue of North American Potato Market News (NAPM) says.

Prices vary for varieties and delivery times though. The offer includes substantial price cuts for early Shepody delivery, as well as a five per cent reduction for storage Clearwater potatoes, while price cuts for Rangers were nominal, the report notes.

“Lamb indicated that it would offer annual contract growers 95 per cent of their 2019 contract volume. However, some growers turned back a portion of their contract volume due to logistical and cost considerations. Therefore, some growers are being offered 2019 contract volumes, or more.”

Lamb Weston has already settled processing contracts with Idaho potato growers. NAPM doesn’t have exact details on the contracts but has heard it involves similar cuts.

“After the settlement, Lamb Weston purchased at least one million cwt of Idaho potatoes from the 2020 crop. More purchases are possible. Some of the potatoes may be shipped out of state, to keep Lamb’s plants supplied until the 2021 crop is ready,” the report says.