Spudman November/December 2022 - 39

Chaos brings opportunity
The Chinese military
leader, Sun-Tzu, in his
UNITED POTATO
GROWERS OF
AMERICA
Buzz Shahan
Chief Operating
Officer
war manual observed,
" In the midst of
chaos, there is also
opportunity. " What
did Sun-Tzu observe
in battle that resulted
in his conclusion?
Military battles are
fought with strategy
and particular tactics.
Once the battle is
underway and strategy
happens to fall apart, the side quickest to
adjust to the ensuing chaos gains advantage
over the other side.
Today, potato producers are in a battle
against chaotic economic circumstances.
Whatever the source of this chaos, whether
politicians, economists, or global influences,
economic chaos rules the day. These are
some of the most challenging economic times
people in business today have ever faced.
Navigating this unpredictability is a serious
matter. How to succeed from now until calm
returns is the challenge, and calm is not just
around the corner. Recent legislation makes
clear that most politicians have learned
nothing from previous mistakes.
Many of last year's process contracts saw
the largest one-year increase ever negotiated.
INDUSTRY NEWS
UNIVERSITY OF IDAHO LANDS
LARGEST-EVER GRANT FOR
CLIMATE PROJECT
University of Idaho's (U of I) College of
Agricultural and Life Sciences is set to
receive up to $55 million - the largest award
in the university's history - from USDA's
Partnerships for Climate-Smart Commodities
to help Idaho farmers and ranchers combat
climate change through agricultural practices.
In addition to supporting research on
building resilient cropping systems, the fiveyear
grant stimulates the state's economy by
paying more than half of the funds directly to
Idaho agricultural producers.
U of I's grant will directly benefit more
than 100 Idaho farmers and ranchers with
climate-smart practices, preventing the
emission of up to 100,000 tons of carbon
dioxide per year into the atmosphere.
POTATOEH
Ideal climate, profitable results.
Check out the seed directory at
albertapotatoes.ca
However large it was, it was not large enough
because this year's contract negotiations
aim at an equal or larger increase. (Specific
numbers are absent here for obvious reasons,
but, if you are in the game, you know the point
being made.)
While chaos exists on the production side
as just illustrated, imagine the chaos on the
buy side. Up and down the potato supply chain,
everyone must have product to operate their
businesses. Processors must have product
in inventory available for those they supply,
retailers must have product on grocery store
shelves, food service must have potatoes
and potato products to fill out menus, and rebaggers
must have product in totes waiting in
the cold room to be bagged and sold.
At the bottom of this potato supply chain
stands the potato producer. Once a lowlier
figure often viewed as not being very wellinformed,
this grower now has ample data
and organizational resources to chart safe
travel until this economic mess straightens
itself out. For decades process-producer
organizations have tried to hold enough
growers together to negotiate reasonable
returns across the board. While basking in
the glow of their amazing negotiating skills,
data be damned, cohesiveness be damned,
certain producers go it alone unaware that
even greater margins result when producers
negotiate as a single entity.
During the past one and a half decades,
fresh-potato producers accumulated market
data with the goal of helping producers
balance the critical supply/demand/price
equation, thereby stabilizing both consumer
and producer prices. Producers in regions that
have balanced this equation now operate their
businesses with annually consistent margins
with consumers benefiting as well. Today's
market conditions make it more important
than ever that potato production generates
fair returns. Profitability has always been
important, though some producers just did
not know it was. Now a few of those types are
either awash in unnecessary debt or no longer
producing potatoes.
There is peace, safety and economic
stability in respecting market data. Successful
business people seek market data and are
anxious to be guided by it.
Experience the vigour of the north. With colder
winters and long summer days, Alberta Seed
Potatoes are the best choice for a higher
yielding potato crop.
Spudman * November/December 2022
39
http://www.albertapotatoes.ca
Spudman November/December 2022

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