Cavendish Farms contract offer divides growers

The latest contract offer to Prince Edward Island process potato growers appears to be creating more bruises than benevolence for Cavendish Farms, especially when the company offered more for potatoes in New Brunswick and Maine.

A meeting to vote on the latest PEI contract offer is expected shortly, but some growers are irate the company is promoting its latest offerdelivered Saturday (June 14) in Cornwallas a price increase.

The issue has divided many growers, some who believe the offer is close enough, while others are steadfast against it due to rising input costs. Diesel fuel for tractors is $1.60 a litre today (June 18), but some experts predict two bucks a litre by fall harvest.

Were still in the midst of negotiations and the processing committee recognizes the challenges that both growers and the company face, said Scott Howatt, chairman of the process committee for the PEI Potato Board.

Its because of the volatility of input costs that were requiring more time, but Cavendish Farms has those same challenges as well.

Howatt did not want to comment further, especially on some stronger opinions obtained by The Guardian, but some growers insist Cavendish Farms is penny- pinching the loyalty of Island growers who have barely seen any price increases in the past two years.

What is extremely difficult and frustrating for growers to understand is that while negotiating a new contract with their PEI growers, this same company has signed a contract to pay more to Maine growers, said one respected grower speaking privately.

According to sources, Cavendish has signed a contract with Maine growers for $1 more per cwt. and will pay freight costs (about $2.50 per cwt) to have any product delivered to the plant in PEI.

Its almost $3 (per cwt.) more than they are prepared to offer their loyal PEI growers who stuck with the company through some pretty tough years to help the Irving family grow the business that they have.

Some growers are suggesting Cavendish is misleading farmers and the public by suggesting after the weekend closed-door meeting that it is offering better prices for the 2008 crop.

As far as I could tell at the meeting, most growers do not think this offer is fair at all and there could be a negative vote, said another contract grower, not wanting to be identified.

A vote day has yet to be determined.

(This article was originally published in The Guardian.)