 In The NewsNational Potato Board Newsletter
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| To: | All UNITED Growers, Shed Operators and Salespeople |
| From: | Jerry Wright, United of America CEO |
| Re: | '05 Crop Pricing Outlook |
'05 Acreage Reductions
The USDA crop reports released Tuesday, July 12, verified potato plantings have been significantly reduced for 2005. The report shows that fall acres were cut by 7.2% or 69,400 acres, making the total acreage planted in the USA's 2005 crop the lowest since 1866. Thanks to your foresight and participation, UNITED's Acreage Bid Buy Down efforts contributed 36,400 acres or 54% of the fall acres cut. In states where UNITED chapters were organized and functioning, UNITED contributed almost 75% of the fresh acres cut. Canadian '05 acres likewise were reduced by 9.0 % or by 38,400 acres. UNITED's influence in Prince Edwards Island contributed 9,650 fresh acres cut, almost 25% of the total Canadian reduction. As the North American Potato Market News has reported, these '05 cuts are different than the past because they are significantly concentrated in "fresh" acres.
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PRESS RELEASE
United Potato Growers of America
6109 S. Yellowstone Highway
Idaho Falls, ID 83402
Toll Free 866.947.3605
208.535.8510
For Immediate Release
USDA Announces 2005 Potato Acreage Down 7% - Lowest Since 1866
TWIN FALLS, ID, July 12, 2005 — The USDA Agriculture Statistics Board released its acreage report for 2005 crop potatoes today. The report announced, “Potato growers across the United States have planted an estimated 1.11 million acres of potatoes in all four seasons this year, down 7% from last year and the lowest since 1866 when record keeping began.”
The announcement came while the United Potato Growers of America Board met to finalize their long-term strategy to bring potato supplies in balance with demand. “We are pleased with the USDA report,” stated Jerry Wright, United Potato Growers of America CEO. “Part of the 7% decline in acreage is a result of UNITED’S business plan, part of which was executed this spring through an acreage bid buy-down program. Economic conditions and poor weather in potato growing areas of the U.S. and Canada also contributed to the acreage reduction.”
Although potato acreage is down, UNITED growers are confident there will be enough potatoes to fulfill demand. “According to United States Potato Board research, potato consumption has been on a decline since the 1980’s. Meanwhile, growers have continued to over-supply the market. Last year alone there was an excess of 12 million cwt or approximately 30,000 truckloads of potatoes in the marketplace. The result: growers are selling potatoes for less than the cost of production, loosing equity in their business and some simply going bankrupt,” added Wright. “UNITED has shown that collectively we can address the challenges of over-supply and create opportunity for our growers.”
About United Potato Growers of America
United Potato Growers of America was formed in March 2005 with the mission, “We bring order and stability to the North American potato industry and increase our economic potential by the effective use of cooperative principles. We work with other segments of our industry to find opportunities to develop better communication, synergies and partnerships.” For more information about UNITED’s programs, visit www.unitedpotatosusa.com.
Contact: Angela C. Hemauer
Cell: 715-212-2910
ahemauer@wisconsinpotatoes.com