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Northwest Farm Credit Services’ 12-month profitability outlook suggests slightly profitable returns for contracted potatoes and profitable returns for uncontracted potatoes. For contracted growers, profits were negatively impacted by lower-than-normal yields and higher bruising. Uncontracted growers were able to offset production and quality challenges with high open market pricing and a solid price floor as processors were actively buying open market products.
Drivers for the potato industry include harvest delays, elevated prices for open potatoes and rising input costs.
- The 2022-23 Northwest crop will be smaller than 2021-22 but has significant quality improvements. Potatoes were three to four weeks behind normal development and where possible, harvest was delayed so potatoes could grow larger.
- Processors were experiencing potato shortages and needed the new crop to continue operating their plants. Growers able to harvest early were awarded with higher open prices.
- Contracted growers’ profits were negatively impacted by lower yields and quality concerns.
