You may not see as many acres dedicated to potatoes this growing season. That's according to Keystone Potato Producers Association manager Dan Sawatzky of Portage la Prairie, as contract negotiations with processors continue. While the discussions are ongoing with Simplot, Sawatzky says they're looking at about a 10 per cent reduction in volume for their contracts. He also notes a strong year for potatoes in North Dakota means an American company won't be taking on Manitoba-grown potatoes.
"Cavendish Farms, who has in the past contracted here in the province, is not going to be contracting for the 2016 crop. They had not quite half-of-a-million hundredweight here in the province last year, and it looks like they're stretching their old crop processing well into September. That means they have to cut down on production from the upcoming crop."
Sawatzky describes the situation as unexpected, noting that given the current economic conditions there should be more incentive to increase volumes for Canadian contracts.
"In some ways it was a bit of a surprise. We feel with a lower Canadian dollar there should have been reasons for the processors to be keeping volume here, with the opportunity of that advantage. It's a bit of a surprise, it was unexpected to see a drop in volume."
Source : Steinbachonline