Potato Bytes
Potato News 
Friday, September 26, 2008
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Northern Plains Potato Growers Association
Office News
It’s Potato Chip Ordering Time Again... Postcards were mailed last week for our annual Halloween potato chip promotion and we are taking chip orders through October 3 rd. The cost is $8.00 per case and there are 54 individual bags of chips in each case. No deliveries or shipments will be made. To place an order, call Julie at the NPPGA office (218) 773-3633 or Email her at communication@nppga.org. Order yours today!
From NPPGA Marketing Director, Ted Kreis ~ NASS Red Potato Numbers Way Off - The USDA Crop Production report is out, and is reporting red potato acreage in North Dakota to be down 51% from last year, and Minnesota down 18%. There is no way these numbers are even close. Acreage surveys we have conducted indicate red acreage in the Valley was down about 5%, and unchanged in southern Minnesota. I have contacted the NASS office in Fargo, and they will investigate this large discrepancy. Additionally, above average yields in the Red River Valley will likely more than offset the small decline in acreage.
Valley Red Business Will Take Off Soon – Shippers anticipate business will pick up soon. October is traditionally one of the Valley’s best months. The transition from southern Minnesota to the Red River Valley is nearly complete with only a few days left of red shipments out of Long Prairie. Red River Valley shippers have shown tremendous restraint staying out of the market until Big Lake and Long Prairie wrap up.
On a Personal Note… Yesterday was a sad day when Duane Maatz walked out of this office for the last time. Four years ago Duane gave me a chance to start a new career. I wasn’t sure what to expect, but I soon fell in love with the job, and that is largely due to Duane’s managerial style. For the most part Duane let me find my own way but was always there to nudge me in the right direction. He was kind and generous. He had a true love for agriculture, and that rubbed off on all that came in contact with him the past 10 years. Good-bye friend, Wisconsin is lucky to get you. God’s speed.
Bytes Trivia: Last week’s Trivia winner was Ron Gjelsness from NoKota Packers in Buxton. Ron knew Coventry England was the home of Lady Godiva’s ride.
Here is this week’s Trivia question: What is the first word spoken in the movie “Citizen Kane?” Send your answer to tkreis@nppga.org. The winner will receive a calculator.
This Week’s Strange Fact : In the year 2000, Pope John Paul II was named an "Honorary Harlem Globetrotter.”
Industry News
From the University of Minnesota, Potato Breeding & Genetics ~ Red Skin-Yellow Flesh Variety - University of Minnesota Potato Breeder Christian Thill is excited about a dark red skinned, yellow flesh round variety that is showing promise. It is pictured at the right and is currently in mini tuber production. MN 02616 was harvested near Williston, ND.
Grading This Week in EGF - Thill and his staff will be grading material harvested from Becker, MN and Williston, ND at the USDA Potato Research Lab in East Grand Forks beginning Monday morning and running all week. They will also be working at the mini tuber seed plots near Gully, MN Tuesday and Wednesday
From the National Potato Council ~ Soil Fumigant Review - This week the National Potato Council (NPC), representatives of state potato organizations, potato growers, other commodity interests, fumigant registrants and the U.S. Environmental Protection Agency (EPA) met to discuss the re-registration process for soil fumigants including, Methyl Bromide, Metam Sodium and Chloropicrin. Currently EPA has published a Registration Eligibility Document (RED) for these products that would dramatically impact the ability of growers to economically use these products. During the meeting, the agricultural interests were able to provide EPA with a clear statement of the negative impact of the mitigation measures, including mandatory site monitoring, extended buffer zones and notification requirements. Comments on the RED are due on October 30, 2008. NPC is working with the registrants and growers who use these products to draft comments for distribution to the potato industry. Growers will be able to use those comments and their own real world examples to file comments.
Commodity Groups meet With EPA on Carbofuran - Recently the U.S. Environmental Protection Agency (EPA) issued a notice of intent to revoke all tolerances for Carbofuran. This week the National Potato Council (NPC), the National Cotton Council of America and the National Corn Growers Association met with EPA to discuss options for maintaining tolerances for potatoes, cotton and rescue treatment for corn. In addition, this week EPA notified these three groups that they would not grant any extension for comments beyond the September deadline currently in place. EPA continues to argue that the use of Carbofuran creates an unreasonable dietary risk, particularly for children. The registrant and the commodity groups believe that the risk is overstated and that the product, although not currently used on large acreage in corn, potatoes or cotton, has important uses to address particular needs including resistance management in potatoes. NPC will develop comments for filing by September 29, 2008.
USDA Listening Sessions For Child Nutrition Act and WIC - In preparation for the 2009 Reauthorization of the Child Nutrition Programs, the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) and the WIC Farmers’ Market Nutrition Program, seven listening sessions were held by the U.S. Department of Agriculture (USDA) around the country from June-September. Advocates for the inclusion of potatoes in the supplemental WIC program provided testimony and/or written comments at six of these sessions (Southeast Region was the exception) as follows:
The following people testified and submitted written comments advocating the nutritional value of plant-based traditional diets. They also provided evidence that potatoes provide the key nutrients that are currently consumed in inadequate amounts by all American’s, and in particular by participants in the WIC program.
Northeast Region, June 10, Boston - Sara Baer-Sinnott, Vice President, Oldways Preservation Trust
Southwest Region, July 15 th, Austin - Allison Beadle, RD
Western Region, August 6, San Francisco - Katherine Beals, PhD.
Mid-Atlantic region, August 6, Baltimore - Helen Masser
Midwest Region, September 10, Chicago - David Grotto, RD
Mountain Plains Regions, September 11, Denver - Jacqueline Berning, Rd, PhD.
Individuals unable to participate in a listening session may also submit reauthorization comments electronically through regulations.gov or fax to 703-305-2879 no later than Oct. 15, 2008.
Acreage Bill to Help Small Farmers - On September 11, House Agriculture General Farm Commodities Subcommittee Chairman Bob Etheridge(D-NC) and ranking member Jerry Moran (R-KS) introduced legislation to clarify language in the 2008 farm bill that ends some subsidies to farmers with only 10 acres of land or less. Under the new bill, small farmers may aggregate their acreage so they will have the minimum base of 10 acres and be eligible for support. The report language in the 2008 farm bill stated that USDA should allow such aggregations, but since enactment of the farm bill USDA officials have said that they will follow the law, not the report language. NPC will continue to watch the activity of this new legislation.
Specialty Crop Dollars - On September 23, over 25 U.S. House Congressional members sent a letter to Chairwoman DeLauro (D-CT) and Ranking Member Kingston (R-GA) of the House Appropriations Committee regarding lack of funding for specialty crop programs in the Senate Appropriations bill. The letter expressed concern with lower funding levels for Specialty Crop Research Initiative (SCRI) and Specialty Crop Block Grants in the FY2009 Agriculture Appropriations Bill (S. 3289) and explained that these programs are very valuable to specialty crop producers. If the Senate FY2009 Ag Appropriations Bill is enacted into law with the funding reductions proposed by the Senate, then it would reduce the mandatory funding provided to the specialty crop growers in the 2008 Farm Bill.
Bayer CropScience to Sponsor BBQ at the Buckhorn Saloon at the POTATO EXPO 2009 - Kick your boots up and have some fun at the BBQ at the Buckhorn Saloon, sponsored by Bayer CropScience. You’ll step back into the turn of the century Texas – not the 20th century…the Century when Texas was born!!! This is Texas. Real Texas. Historic Texas. There is absolutely nothing like the Buckhorn Saloon and Museum.
Register for the POTATO EXPO 2009 by Nov. 1 and save $100. To register, go to www.potato-expo.com.
U.S. House Passes Ag Approps Bill - On Thursday, the U. S. House passed a Continuing Resolution (CR) (H.R. 2638) to fund government operations for a portion of FY 2009 by a vote of 370 to 58. The approved FY 09 Continuing Resolution (CR) will extend funding for the federal government through March 6, 2009. The CR package contains all twelve of the FY 09 appropriations bills, including agriculture appropriations which will provide full funding for USDA programs. Therefore, funding for the most part (including for USDA agencies and programs) is continued at the FY 08 levels. The U.S. Senate could consider the legislation as early as Thursday evening.
Administration and AG Groups Push for Vote on Colombia FTA - Although the atmosphere on Capitol Hill is toxic toward foreign trade agreements, the Bush administration and members of the United States’ business community including agriculture continue to press for a vote on the Colombia Free Trade Agreement (FTA). Passage of the Colombia FTA is all about leveling the playing field for U.S. export goods. Currently Colombian goods enter the U.S. tariff free while tariffs for U.S. fries and corn entering Colombia are 15 and 57 per cent respectively. While the Colombia FTA languishes in Congress our trading partners including Canada that have previously negotiated trade deals with Columbia enjoy tariff free or low tariff access to the Colombian market.
From the United States Potato Board ~ U.S. Exports Reach Record High for Second Year in a Row - Total US potato exports for frozen, fresh, dehydrated, chips and seed potatoes and potato products were valued at $1.11 billion in the July 2007 to June 2008 marketing year (MY2008). This marks an 11.35 percent increase over MY2007 and represents the fifth consecutive year of export growth. The volume of exports increased 10.28 percent for a total of 1.2 million metric tons (MT). The fresh weight equivalent of these exports comes to 53.4 million cwt of potatoes that left the United States for foreign markets.
These increases were led by continued growth in the largest export category, frozen potatoes, which grew by 12 percent in volume to 760,355 MT. The value increase was a whopping 20 percent to over $655 million. This growth was led by substantial increases to the United States Potato Board’s (USPB’s) target markets in Asia. Japan, the largest export market, with 38 percent of total frozen exports, grew 6 percent to 269,105 MT
The highest rates of growth were in Southeast Asia where sales to Malaysia were up 69 percent, Thailand—up 32 percent, Indonesia—up 31 percent and the Philippines—up 12 percent. Combined exports to China and Hong Kong reached 76,877 MT—up 22 percent over the previous year.
Sales of specialty products helped frozen exports to Korea grow by 21 percent to 33,976 MT. The only real disappointment was a 7 percent decline in exports to Mexico—down to 84,112 MT from 90,433 MT in MY2007. Much of this decline appears to be attributable to very low priced retail product from Canada and the EU eroding US market share at retail.
Exports of fresh potatoes (table-stock and chip-stock) increased by 15 percent to 293,230 MT, valued at $135 million. In this case the growth mainly came from Mexico and Canada. Canada accounts for 59 percent of total fresh exports and grew by 4 percent this past year. Mexico is the second largest market. Despite the restrictions on exports to the 26 kilometer frontier zone, exports still grew by 23 percent to 56,588 MT valued at $26 million.
The USPB’s target markets in Asia, while much smaller, also imported increased quantities of fresh US Potatoes. This growth was led by fresh potato exports of 12,989 MT to Korea—a 448 percent increase, and 16,000 MT to Taiwan—a 28 percent increase.
The largest percentage increase was 769 percent as over 5,000 MT of chipping potatoes were exported to the Philippines. Thailand is also a new and growing chip-stock market with exports up 223 percent to 2,733 MT.
Malaysia imports both chip-stock and table-stock and saw an increase of 74 percent up to 7,395 MT. Hong Kong and Singapore are mainly table-stock markets and experienced growth of 5 percent and 19 percent, respectively. Despite the short supplies and significantly higher prices, exports to the USPB’s target markets in Asia were able to remain stable due to strong demand in these markets.
Dehydrated potato exports were the only category registering a decline in MY2008, as reduced supplies in the United States restricted availability for the foreign markets. Total exports were down 12 percent by volume to 88,963 MT with value off 7 percent to $132 million. The biggest decline was in exports to Mexico, down 50 percent as demand from the Frito-Lay Stax plant dried up.
Seed potato exports remained at roughly the same level with a slight increase to 11,203 MT, valued at $6 million. There was good growth in the USPB’s target markets of Nicaragua and Uruguay, and exports of US Seed Potatoes to Brazil and Sri Lanka were the first ever for these markets
International Chip Symposium - The USPB would like to invite all interested chip-stock growers to attend an exciting international information session to be held in Los Angeles, California.
The “International Chip Symposium” will be held Friday, October 17, 2008 from 9:00 a.m. to 5:00 p.m. Lunch will be included with a reception & dinner to follow the Symposium.
This program will provide presentations on several topics, including the current US chip market, foreign chip market opportunities, US chipping varieties, as well as information on the USPB International Chip Programs & assistance. Participants from major chip manufacturers in the Philippines, Malaysia, Thailand, Japan and China who attended the USPB-hosted Reverse Trade Mission will present information on their markets, as well as their companies. This is an excellent opportunity for US chip growers to meet potential, new foreign chip buyers!!!
For more information, please call Sarah Mahler at 303-873-2334, or e-mail sarah@uspotatoes.com
Space is limited, so it is important you RSVP by September 25, 2008 to ensure your participation! Please fill out the attached form and fax to 720-249-0110. We look forward to seeing you in Los Angeles! 2008 International Chipping Potato Symposium RSVP
Microwavable Vegetable Category Growing Faster than Traditional Category - The microwaveable, “steamable”, vegetable category produced retail sales of over $200 million, with a growth rate of 7.8% in the latest 52 weeks ended June 28, 2008, including potato products sales of $22.5 million, 85% of which were single-wrap microwaveable russets.
This analysis clearly demonstrates to the potato industry that a significant microwaveable vegetable category exists, is growing faster than the traditional vegetable category and while some potato products have been successful in the category to date, the potential for growth from more value-added potato products is evident and is being captured successfully by other vegetable products.
Microwaveable Potato Review Latest 52 Weeks Ending 6 28 2008 v4
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Make Plans Now to Attend POTATO EXPO 2009 in San Antonio January 7-9 - Learn more about the POTATO EXPO 2009 by visiting www.potato-expo.com.
Many national potato organizations are scheduling meetings in San Antonio the week of the Expo including PMANA, the National Potato Council, the United Potato Growers of America, the US Potato Board, and the American Potato Trade Alliance. For a complete schedule of these meetings, go to:
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Items for Potato Bytes? - If you would like to submit an item or announce an upcoming event in Potato Bytes, or if you have a story idea for the Valley Potato Grower magazine, please call (218) 773-3633 or send an e-mail to communication@nppga.org.
