Potato Marketing and Cost of Productions

There is no central potato-marketing agency in Alberta. Producers have the responsibility to market their own crops.

All potatoes grown for processors, whether French fries, chips or other processed products, are grown under contract to the processor. Contracts stipulate variety, number of acres and yield. There is a base price with incentives or disincentives for quality, color and specific gravity etc. Prices for in-storage potatoes increase every two weeks after November 1. A negotiating committee made up of growers negotiates with processors for all growers and all growers voluntarily accept the negotiated contracts.

Potatoes grown for the fresh market are sold on the open market potatoes or under contract. Open market allows growers to attempt to manage price by marketing when prices are stronger. The fresh market provides an outlet for surplus seed potatoes. In the past, the Potato Growers of Alberta (PGA) has done some promotion of potatoes directly to the consumer.

For specific customers, seed potatoes are grown under contract. Variety and price are established up front. Seed potatoes are also grown as open potatoes and marketed by brokers or dealers. Varieties are selected based on demand or market trends. Brokers/dealers often advise which varieties will have a market. The Alberta Seed Potato Growers Association establishes suggested prices for each generation of seed in November of each year. Individuals can negotiate around the suggested price. ASPGA/PGA promote seed potatoes by media advertising, trade shows and conferences.

Information provided by V. Warkentin, PGA.