As Wisconsin's potato industry prepares for its annual Grower Education Conference and Industry Show next week, growers are operating in a national market shaped by oversupply. High yields and excess processing stocks across the United States have weighed on open-market prices, despite more stable conditions in Wisconsin compared with several Western producing regions.
According to WPVGA Executive Director Tamas Houlihan, uncontracted potatoes in major production areas such as Idaho are currently trading at between US$2.00 and US$3.00 per hundredweight, well below the estimated US$12.00 needed to break even. He said this situation has developed as processors reached capacity, prompting Western growers to redirect surplus processing potatoes into the fresh market.
"We are in a big oversupply issue situation right now, and so prices are very low," Houlihan said. "They're really hemorrhaging, and unfortunately, it affects every state and all potatoes."
Wisconsin growers have so far managed to secure higher prices for fresh-market volumes, with reported returns in the range of US$15.00 to US$16.00 per hundredweight. However, rising production costs are reducing margins, leaving less room to absorb further market pressure.
Beyond pricing dynamics, the conference in Stevens Point will also focus on regulatory risks facing crop management inputs. Sessions are expected to address the potential phase-out of tools such as neonicotinoids and sprout suppressants, which remain available but are subject to increasing scrutiny.
"We feel like we can still use it legally here, but we'd better be prepared for the day that our government says no more," Houlihan said. "We're trying to stay ahead of the curve and meet the marketplace demands that we're starting to see."
Discussions at the event are expected to center on how growers can manage market volatility while adapting production systems to shifting regulatory and buyer requirements.
Source: Q106
