New Organization Aims for Solidarity Among San Luis Valley Potato Growers

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New organization aims for solidarity among San Luis Valley potato growers

February 8, 2005

A fledgling growers? cooperative brought representation of more than 50 percent of the San Luis Valley?s potato acreage to its initial gathering Jan. 12, and the organization?s president said that by early February, he expected 70-75 percent of the acreage involved.

The purpose of United Fresh Potato Growers of Colorado Inc., which is similar to co-ops formed in Idaho and Oregon, is to bring solidarity to the area?s growers, according to the organization?s president, Center, CO-area grower Dave Warsh.

?The first thing is to find out what the growers here want," Mr. Warsh said in late January. "We?ll set a floor price and show solidarity. If the price goes down $2 per cwt., we won?t move any more potatoes than we?re moving at the current price. We?re putting together a price advisory, which will be posted on our web site at www.unitedpotatoco.com, and our current crop committee is getting information on varieties and number of potatoes in storage."

Mr. Warsh said that as of Jan. 1, approximately 65 percent of the San Luis Valley?s 2004 crop remained in storage.

Noting that the Colorado group is sharing information with Idaho, he said, "We don?t want to create a whole new concept, and Idaho is looking at a national cooperative that all states can join and disperse better information."

Formed in accordance with the 1922 federal enactment of the Capper-Volstead Act, the incorporated cooperative is allowed to fix potato prices without anti-trust repercussions.

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Membership of the corporation is specifically open to an "agricultural producer actually engaged in the production of potatoes or a landlord which receives a portion of the potato crop as rent," which excludes companies that are marketers or packer-shippers but not growers.

At the co-op?s first meeting, Mr. Warsh was elected president; other members of the its board of directors are Lynn McCullough, first vice president; Jed Ellithorpe, secretary-treasurer; Keith Holland, vice president of membership and public relations; Jack Felmlee, vice president of future demand; Gary Gallagher, vice president of crop supply and pricing; and Ron (Moe) Bond, vice president of oversight and accountability.

?At a week old, we had 50 percent of the [San Luis Valley potato] acreage," Mr. Warsh told The Produce News, adding that the co-op had financial backing from more than 35 percent of the potato acreage, which in 2004 consisted of 64,000 acres.

The number of individual growers joining "keeps coming in," Mr. Warsh said. "We?re seeing good numbers, and we have commitments from some of the bigger growers. We?re shooting to have 70 to 75 percent of the valley?s acreage [involved] in February."

A mission statement that was adopted reads: "To bring order and stability to the Colorado fresh potato industry and increase our economic potential by the effective use of cooperative principles. To work with all segments of our industry to find opportunities to develop synergies and partnerships."

Divided into four districts based on potato production, the co-op has representation from Alamosa, Rio Grande, Saguache, Conejos and Costilla counties. Mr. Warsh said that the impetus for a Colorado cooperative came in large part from a similar effort in Idaho.

?Actually, Idaho got it rolling first," he said. "Albert Wada from Idaho came to Colorado in early December and explained what they?re doing there. He had contacted growers in the San Luis Valley that he does business with, and they invited him down. Chris Voigt at the Colorado Potato Administrative Committee helped out a lot? with the December presentation.

Mr. Warsh continued, "With Idaho gathering steam, the San Luis Valley wanted to be a part of the effort if it was going work. We had about 80 people at the first meeting, which was a fairly short presentation. Idaho is still in the developmental stage, and people [in Colorado] had a lot of questions. But Albert has been doing presentations in other growing areas, and we knew it warranted looking at."

Shortly after that December presentation, the wheels of a new co-op began turning in Colorado?s primary potato growing area.

Jed Ellithorpe concurred that the Colorado co-op "has a lot to do with what?s going on in Idaho and the national effort." He added, "Colorado is really taking an aggressive approach. We have a lot of interest and have reached critical mass of acreage for involvement."

Mr. Ellithorpe also noted a possible 3 percent reduction in potato acreage in 2005, brought on largely because of water issues.

Commenting on water, Mr. Voigt said that a proposal has been made by the area?s water district that growers create a subdistrict and move for a significant reduction in irrigated acreage, upwards of 30 percent. However, Mr. Voigt said that the reduction is most likely to come in grain and alfalfa acres

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rather than potatoes.

With regular meetings of the new group (?It seems like hourly lately," Mr. Warsh said.), the co-op is working to "make sure we have a positive effect on the crop that is still left."

Feedback from retail has been good, he said. "The only ones I've heard speak to the point specifically have been positive," Mr. Warsh said. "They don?t want to be the only ones buying at higher prices, and they want a level playing field."

He added, "We?re poised in a nice location to sell premium potatoes at a premium price, and we want to make sure we maximize the market."

(A full report on San Luis Valley potatoes appears in the Feb. 7 issue of The Produce News.)