Processed Potato Growers' Associations: Information and Organization Needs

Excerpts from the report: Rapid changes in utilization of potatoes from fresh to processed have occurred because of major changes in consumer markets and in the pricing and delivery systems for the potato crop. As processing has increased, processors have seen the advantages of contracting, which include increased efficiency, more control over cost, and control over quality. A shift to preseason contracts has been followed by organized contract bargaining between growers and processors. Producers have formed bargaining associations in each of the major processing potato growing areas. However, the associations have not been effective in bargaining on a year-to-year basis for a variety of reasons. Major reasons are lack of appropriate information, lack of market analysis, and grower members’ insistence on maintaining individual independence by dealing directly with processors. Objectives of the study are to: evaluate the present structure of producers and processors in the processed potato industry, set forth recommended shortrun organization and information needs for producer bargaining associations, and develop a longer run marketing strategy for producer bargaining associations. This report suggests directions toward which bargaining associations might move to become more effective in negotiations with potato processors, more efficient in the marketing process, and more effective participants in the marketing system.