Island spuds may be soggy but prices on fire for crop

Theres a smell of rotting potatoes hovering around eastern Prince Edward Island these days, but despite a season that even drowned the wireworms, potato prices are on fire.

Its the smallest crop in seven years, but it could turn out to be the most profitable for the Island potato industry at double the price over last year.

We have increased prices but combined with increased input costs, we have an expensive year ahead of us, said Kevin MacIsaac, chair of the PEI Potato Board.

However, to be positive, the marketing efforts are coming along and putting prices where they should be.

Today, a 10-pound bag of potatoes worth 93 cents last year is hovering around the $2 range during the International Year of the Potato.

Growers gathered at the annual board meeting at the Delta Hotel Wednesday (Nov. 26) in Charlottetown had more than a few reasons to smile.

Consumer demand this year remains high while North American production remains low.

The effort to reduce acreage as a way to push up prices has paid off, but the drop in yields in many parts of the country has triggered a market shortfall.

Fresh potatoes will be the bargain of the century this year, said Barb McLaughlin, agricultural analyst with Statistics Canada.

And with the economic crisis were hearing about this could be a blessing in disguise. Families will spend less time at tablecloth outlets and head to McDonalds.

PEI growers find themselves temporarily free of the burden of high fuel prices, enjoying a better exchange rate thanks to the clipped wings of the Canadian dollar, and making more money for producing fewer spuds.

Bruce Huffaker of the North American Potato Market News based in Idaho said prices are expected to climb throughout the winter, but warned to ship softly as a way to ensure a market supply exists until next spring.

PEI production dropped to about 92,500 acres this past season and while average yields were on target, the August dump of rain literally drowned out some low-lying fields and cut production to 27 million hundredweight or 10 per cent overall.

Its a bittersweet crop in some ways, said MacIsaac. Those who can deliver the product will be very happy, those facing quality problems and less production, it will hurt.

The Bear River farmer said western growers fared well this year, but losses are piling up east of Charlottetown.

The breakdown in storage is substantial, he said. But processors are helping out and growers are delivering crops eight months ahead of schedule to reduce loss.

Eastern growers are spending these days washing the muck off potato piles that are starting to turn to salvage what they can.

But higher prices create a dark side and out of the shadows could come a production increase next year. Growers may plant just a little extra acreage just in case the market demand remains strong.

And while it is strong, Huffaker told the crowd at least one quick service restaurant in the U.S. is worried about a supply shortage and has developed a French fry rival.

Its a macaroni cheese stick and the kids like it, he said. The Guardian