Columbia Basin growers ratified a 2010 contract with Lamb-Weston last week. The editor of North American Potato Market News, Bruce Huffaker, reported that this was to be the second year of a two-year contract, which was indexed for production costs.
The settlement reportedly honored the price terms of the original agreement. The contract return declined slightly less than 12%, in line with the reduction in input costs. According to Mr Huffaker, the growers agreed to other material changes to the contract, to make it more palatable to Lamb-Weston.
The 2010 contracts will still be acreage based, but they will include a cap of 3% over a target volume. The cap will be enforced for each grower, at the variety level. The settlement is likely to be a template for remaining settlements in the Columbia Basin. Mr Huffaker said the settlement with Lamb-Weston will be viewed as a benchmark for other negotiations across North America this season.
First french fry contract settled in the US
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