Manitoba potato growers signed a contract with McCain Foods last week, but their prices won’t increase from last year.?
Garry Sloik, manager of the Keystone Potato Producers Association, said it’s a relief to finally sign a deal for 2013, but production costs have risen so a deal without a price increase equates to a loss.?
“It’s not necessarily good news in that we accepted a rollover price,” he said.?
“So any cost increases this year are strictly out of the grower’s pocket.”?
McCain’s and Manitoba potato growers had been locked in a stalemate over the last few months. ?
McCain’s had offered a five percent price decrease, but producers were unwilling to accept that deal.?
Growers are disappointed because Simplot, the other potato processor in Manitoba, had previously offered a slight price increase. ?
Contract language now allows Simplot to reduce its contract and match McCain’s lower price.?
The contracts will also significantly reduce potato acreage in Manitoba.
