Potato Bytes
Potato News
Friday, February 29, 2008
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Northern Plains Potato Growers Association
Office News
From NPPGA President, Duane Maatz – Washington Meetings Productive - We had a productive time at the National Potato Council Public Policy Conference in Washington DC this week. Along with myself, our group consisted of Jerry Larson, Justin Dagen, Mark Thompson, Eric Halverson.
The buzz in the DC ag. community is of course the Farm Bill. While you might be hearing how close to complete the bill is, there are many issues that remain to be reconciled. On Tuesday the Senate side finally came to consensus on the expected cost of the 5 year bill at roughly $10 billion. The House version was around $8 billion and the Senate about $12 billion and the sides settled on a figure. Now the more difficult work of what stays with the bill, and where are the cost offsets, is slated to begin.
The Specialty Crop Coalition is to be credited with shaping this Farm Bill, giving growers of these crops a better stand on public expenditures. Specialty crops will share in the Farm Bill in the form of research funding and export market enhancing type expenditures. We have not requested nor will we become a program crop with direct payments being made on potato acres.
There are changes on the horizon. In these times of high prices for program crops, direct payments are being scrutinized. We can no longer hide behind the counter cyclical payment argument as direct payments are moved to the forefront of conversation. Perhaps the counter cyclical payment will stand in the next Farm Bill, where it will be difficult to maintain direct payments.
Another issue that comes closer to non-program specialty crops is the planting flexibility restrictions. We have forever stood behind this principle in the belief of preventing overproduction through a subsidy. During WTO talks this principle came under attack with indications that it creates an unfair trade basis because these crop are limited in their production, driving up the price in foreign markets. Well, we never thought of it from that side of the coin, but many others have.
This too is facing some potential changes through the possibility of a pilot program that may run in several states. The argument is that processors cannot get the acres needed to run their plants. Competition for acres among competing crops is at an all time high worsening the situation. Under the current proposal, I cannot believe this will reach to potato acres. We need to closely examine the needs of competing crops so that we take the correct avenue for our future. The winds of change are blowing. We need to choose if they will be at our back or in our face.
We have much to be proud of in the leadership of our elected delegation in Washington DC, having seen firsthand the stresses, pressures and how well they are reacting to rapidly changing situations. These people are working with your best interests in mind. They know our issues and positions and are working very hard to foster our needs and positions into positive outcomes.
Eric Halverson Participates in Leadership Program - Eric Halverson has been traveling with the Leadership Program. They have long days filled with instruction and interaction, participating in sessions from media training to a cooking contest. As in life, there are many competitions as we all want to come out winners. The group started their program in the San Luis Valley of Colorado and completed their program in DC with the Public Policy Conference. Each year we have the opportunity to have one participant from each Minnesota and North Dakota enroll in this excellent program. Decisions regarding our participants are made by the Board of Directors during August. Please watch this publication for your chance to enroll in the upcoming year.
Area II Research Reporting Conference March 4 th in Big Lake - The Minnesota Area II Research Reporting Conference will be held next Tuesday (March 4) in Big Lake. The program will begin at 9AM at the Salida Event Center. Last year the growers of MN Area II moved to increase their research contribution and they now have dollars which exceed our financial capabilities in regard to research funding. I expect a good program next Tuesday. Growers should make every effort to attend this conference.
NPPGA Budget Process Begins - We will start the budgeting process for our next fiscal year with our research committee meeting during the third week of March. The Advertising and Promotions Committee will meet shortly thereafter. Our process then takes us to the Budget Committee which will assemble the recommendations for consideration by the Board of Directors and their approval. We have a core group of growers who conduct these meetings and we welcome additional volunteers to help us through this important process. Please get involved.
From NPPGA Marketing Director, Ted Kreis – UPGA Partners Seminar Scheduled - Fresh and process growers alike could benefit if the United Potato Growers of America (UPGA) is successful in establishing an affiliated membership with the Red River Valley Fresh Potato Growers Co-op. Minn-Dak Potato Cooperative members could affiliate with the Red River Valley Fresh Co-op, at no additional cost, and take advantage of the financial incentives to be offered by the Partners Program. This is made possible because Minn-Dak belongs to the Potato Marketing Association of North America, who is partnering with United to make this program possible. A March 18 th Seminar has been scheduled at the Alerus Center in Grand Forks to better explain the Partners Program to all area growers, as well as prospective local corporate partners. The seminar will include presentations by Bayer CropScience, AMVAC, and Winfield Solutions. The free seminar will go from 9:00 AM until 3:00 PM and include lunch and gifts for all attending. All growers and local prospective partners are also urged to attend. Call me at 218-773-3633 or email tkreis@nppga.org to register.
Deadline Established for United Membership Drive – The Board of Directors for the Red River Valley Fresh Co-op has set March 21 st as the deadline to complete the membership drive for the local co-op. If sufficient membership is not obtained, the Board will reassess the decision to join United Potato Growers of America. Interested fresh growers are urged to contact one of the Board members as soon as possible if they are interested in joining. Those members are Steve Tweten, Paul Dolan, Greg Hall, David Moquist, and Tom Campbell.
De-hy Exports Drop - Company officials cited declining world demand as one of the reasons for closing the North American Foods flake plant in Grand Forks. Recently released numbers from the International Trade Commission would seem to support that claim. Exports of dehydrated potato products declined nearly 13% from 2005 to 2006, or a drop of 7.6 million pounds of finished product.
BYTES TRIVIA – Last week’s Trivia question was Allen Tucker of St. Thomas. Allen knew that lactose is the ingredient in fresh milk that is devoured by bacteria causing it to sour.
Here is this week’s Trivia question: Which professional boxer had the nickname “Sweet Pea”? Send your answer to tkreis@nppga.org. The winner will receive a NPPGA golf towel.
THIS WEEK’S DEEP THOUGHT: If you throw a cat out a car window, is it considered kitty litter.
Industry News
From the National Potato Council - USDA Reconstitutes Trade Advisory Committees - Last week USDA announced the appointment of members to the USDA Trade Advisory Committees. The potato industry has representation on several of these committees. The committees meet three to four times a year to obtain briefings from USDA and to provide input on trade issues critical to agriculture. Members of the committee are considered cleared advisors and, as such, are able to view discussion documents and drafts of trade agreements before they are publicly available. The USDA announcement named Dan Moss, a past president of the NPC, to the Agriculture Trade Advisory Committee (ATAC) and John Keeling, NPC Executive Vice President and CEO, to the Agriculture Policy Advisory Committee (APAC).
Farm Bill Making Progress??? - Despite some hopeful reports that have appeared in the National Journal and other publications as of 3:00 pm on Friday there is still no agreement on the amount and sources of funding for the 2007 Farm Bill. Discussions are continuing between senior principles in the House, Senate and the Administration, and sources close to the negotiators remain optimistic. Staff level discussions are continuing to attempt to resolve smaller language differences in the House and Senate versions. Next week, House Agriculture Committee Chairman Collin Peterson will address the attendees on the prospects for the 2007 Farm Bill at the NPC Public Policy Conference being held next week in Washington, DC.
Golden Nematode Discussion Continuing - Last week, technical discussion between the Canadian Food Inspection Agency (CFIA) and APHIS on the Golden Nematode situation in Alberta took place in Washington, DC. The discussions focused on developing clear options for growers on both sides of the border for testing and survey work to facilitate the shipment of seed potatoes for the 2009 planting year. Other technical discussions will be held between CFIA and APHIS in early March to further the discussion. NPC has communicated to APHIS the importance of providing information to growers on the structure and scope of survey requirements as early as possible so that actual sampling can begin as soon as fields thaw.
From the USDA NASS Office: Agricultural Economic Survey Measures Farm Financial Health – North Dakota agricultural producers will have the opportunity to “set the record straight” by participating in the Agricultural Resource Management Survey conducted by USDA’s National Agricultural Statistics Service NASS. This survey provides the leading economic indicators about the agricultural industry used by members of the agricultural community and their legislators when making important decisions that support American’s farmers and ranchers.
Data collected will present the only objective, true picture of the financial well-being of North Dakota farm operators and will provide an accurate portrayal as Congress drafts the new Farm Bill. These data are also a resource when policymakers determine Federal assistance.
Agricultural producers chosen to participate in the survey will represent from 50 to 100 fellow producers and will therefore make an important contribution to the overall welfare of American’s farmers and ranchers. All individual data collected are held strictly confidential by law (Title 7, U.S. Code). Only statistical totals are published for selected geographic regions and the Nation.
Results from the survey will be used by agricultural producers, producer organizations, commodity groups, lenders, university researchers, news media, local USDA agencies, farm suppliers, and others to evaluate economic challenges facing America’s food and fiber producers, measure the profitability of agricultural production, assess the ability for producers to maintain sustainable farms and determine the need for farm financial assistance.
Farm Production Expenditures , the first report with results from the survey, will be released on August 7, 2008. For a copy of the finished report or to obtain other agricultural statistics, visit the National Agricultural Statistics Service website at www.nass.usda.gov or call 1-800-626-3134.
From the US Potato Board – Upcoming Research Reports - The USPB has received the preliminary top-line Attitude and Usage Study from our new contractor, Synovate. There are no significant changes since last year, encouraging however, is that overall attitudes remain mostly positive. The full report will be available by the USPB Annual Meeting, March 11-14, in Denver.
The 2007/2008 NET (National Eating Trends) Report is in the field and will be also be completed by the USPB Annual Meeting.
The USPB is awaiting 2007/2008 Homescan reporting. This is the report where the USPB captures the potato buying trends of 125,000 consumers and where they purchased potatoes. This important consumer data, combined with the Nielsen sales data can help you build a very effective presentation for your accounts.
USPB Retail Portal Available For Industry Use - Quarter 4, 2007 has now been posted on the USPB Retail Portal. The portal allows you to review fresh potato supermarket sales in 48 Scantrac markets – in considerable detail. The portal can be accessed through the USPB website, www.uspotatoes.com: click on Domestic Marketing, then retail portal, follow a drop down to “Market Trend Reports”. If you have problems accessing the data or reading the reports, contact Mac Johnson or Carroll Graham at the USPB, macjohnson@uspotatoes.comor carrollg@uspotatoes.com or 303-369-7783.
2007 Year-End Nielsen Report – Below you will find links to the 2007 Year-End Supermarket Nielsen Reports for Frozen, Refrigerated, Chip, Dehy and Fresh sales through supermarkets. You will also find a consolidated report of all segments. For the industry’s convenience and use, the USPB has also included a PowerPoint of the fresh numbers that can be incorporated into your presentations. As in the past, the Nielsen numbers can be used in your presentations, but cannot be altered, and Nielsen and the USPB should be identified as the source of the data. We’ve also included the Nielsen map to identify the regions. These reports can be very helpful when reviewing trends and building presentations to your accounts. Questions? Contact Mac Johnson at the USPB, macjohnson@uspotatoes.comor 303-369-7783.
2003-2007 Trend Frozen Rev X Sweet.xls
2003-2007 Consolidated Trend.xls
Nielsen 9 Region Map.ppt
2000-2007 Nielsen Supermarket Sales.ppt
Why Carbs Are The New Diet Craze. Pass The Potatoes! Here’s How Carbs Can Actually Help You Slim Down - Potatoes get a bad rap as little more than a waist-thickening waste of calories. But amazing new research puts spuds squarely at the center of the latest weight-loss buzz, along with other unfairly maligned carbs such as corn and rice. The reason: All these foods contain resistant starch, a unique kind of fiber you’ll be hearing a lot more about. In fact, experts agree that it’s one of the most exciting nutrition breakthroughs they’ve seen in years. “Resistant starch has the potential to become the next hot nutrition trend,” says Leslie Bonci, R.D., author of the “American Dietetic Association’s Guide to Better Digestion.” Indeed, more than 160 studies have examined this little-known nutrient’s remarkable health and weight-loss benefits.” For the full story on the role of potatoes as a resistant starch, visit http://www.msnbc.msn.com/id/23189188/ and http://www.adajournal.org/article/PIIS0002822307019323/abstract
Us Frozen Potatoes Featured On Online Shopping Sites In Korea - Auction, the second largest online shopping mall in Korea, launched US frozen potatoes in December. This follows G-mart, which added frozen potatoes from the us to its site in September. Both sites offer a wide range of frozen products from all US processors including shoestring, crinkle cut, tater tots, deli wedge, coated fries, baby bakers, red skin dice, basket weave and potato pancakes. To view the sites and the array of us frozen potato products offered follow these links. G marketAuction
The Perfect Potato - The USPB Public Relations team scored a direct hit in the March issue of bon appétit, on newsstands now. This six-page feature story includes beautiful photography and mouth watering recipes, all while extolling the virtues of the Russet as “the perfect potato”. Bon Appétit - Potatoes.pdf
Chip Seminar: It’s Not Too Late To Register!! - Just a reminder, it’s not too late to register for the Chip Seminar, March 5-8, 2008, Orlando, FL. The Chip Seminar is the only meeting of its kind bringing growers, manufacturers, and suppliers together. Interested? Contact Sarah Mahler or Mac Johnson at the USPB , macjohnson@uspotatoes.com or 303-369-7783.
From the North Dakota Ag Dept. - NASDA Backs End to Railroad Anti-Trust Exemption - The nation’s leading state agriculture officials have called for an end to the antitrust exemption for the railroads
“The lack of competition among the railroads has resulted in unreasonably high rates and unreliable service for agriculture producers,” said North Dakota Agriculture Commissioner Roger Johnson. “With the massive concentration in the rail industries, entire states, whole regions and even complete industries have become captive to a single railroad.”Johnson, the president of the National Association of State Departments of Agriculture (NASDA), wrote a letter to congressional leaders, including U.S. Sen. Patrick Leahy, chairman of the Senate Judiciary Committee, and U.S. Rep. John Conyers Jr., chairman of the House Judiciary Committee, in support of Senate Bill 772, the Railroad Antitrust Enforcement Act of 2007.
“This bill would amend federal antitrust laws to provide expanded coverage and to eliminate exemptions that are contrary to the public interest,” Johnson said. “The legislation will remove the antitrust exemption from railroads and, hopefully, begin a process where our nation’s railroads will become more responsive to the needs of our economy.” Johnson said rail transportation is a critical component to the agriculture industry, and he noted that the legislation has widespread bipartisan support from members of both parties, especially those from agricultural states. “It is critically important to ensure that rail customers have access to competitive rail service and that rail customers in those areas without competition have access to reliable rail service and are protected from unreasonable railroad rates and practices,” he said.
The bill was introduced by Sens. Herb Kohl (WI), Norm Coleman (MN), Russ Feingold (WI), David Vitter (LA) and Jay Rockefeller (WV). NASDA, the elected and appointed state commissioners, secretaries and directors of the 50 states and four territories, passed a resolution supporting the legislation during the group’s annual midwinter meeting in Washington.
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.
