Idaho farmers reject processors' contract offers

March 08, 2012

Idaho potato growers have rejected processors' contract offers, convinced they were insufficient to cover rising input costs and prevention of the emerging disease zebra chip.

Dan Hargraves, executive director of Southern Idaho Potato Cooperative, said ConAgra Foods Lamb Weston offered growers a 10.7 percent increase in their contracts from 2011. SIPCO wanted a 15 percent hike. J.R. Simplot Co. subsequently matched Lamb Weston's offer, he said.

Only H.J. Heinz Co. has reached a contract with Idaho growers. It spans two years and includes variable rates, based on the actual input costs growers incur.

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