Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Potatoes topic
No spam. Unsubscribe anytime.
Idaho Potato Commission outlines $15 million budget, trade and labor concerns; uses reserves for Mexico promotion
Summary
Jamie Hyam, president of the Idaho Potato Commission, told a legislative committee that the commission expects about $15 million in revenue, is using reserves to fund promotional activity in Mexico this year, and is monitoring trade, water, labor and succession risks to the industry.
Jamie Hyam, president of the Idaho Potato Commission, presented the commission’s financial overview, promotional strategy and sector risks to a legislative committee.
Hyam said the commission’s revenues this year total about $15,000,000 and described a reserve structure held to cover multi-year commitments; after accounting for those commitments she said “we would have 776000 dollars left over.” She said commissioners agreed to use part of the reserves to pay for promotional activities in Mexico this year, which was the planned reason the commission’s expenditures would exceed revenue for the year.
Hyam described several trade and market pressures facing Idaho growers. She said the United States is a net importer of processed potato products and warned that China is rapidly expanding processing capacity. "China has just amount of capacity, for processing to take care of China... it will triple in the next 5 to 8 years," she said, adding that shipped processed products from the European Union are competing in U.S. markets. Hyam also described freight and logistical pressures, noting that sometimes shipping container costs can make overseas shipments competitive with long overland hauls.
The commission is investing in variety research, storage improvements and drought- or disease-resistant varieties through work with the University of Idaho, Hyam said. She listed labor and farm succession as ongoing concerns and said the commission spends a portion of its budget on national TV advertising to support the "Grown in Idaho" brand.
When Representative Ehlers asked how the commission demonstrates return on investment for marketing, Hyam said attribution is difficult but pointed to continued market recognition and premiums received by Idaho growers as evidence the campaigns support demand. Representative McCann described consumer price spikes seen in retail and Hyam explained retail bag pricing is affected by supply, freight and retailer pricing strategies; Hyam noted retail margins and distribution influence the consumer price of a small retail bag compared with bulk transactions.
Hyam also described a proposed rebirth of a specialty license plate advocated by the commission and noted the commission’s long-standing national advertising presence.
Why it matters: The commission’s budget and reserve decisions affect how much the commission can spend on promotion and research; Hyam framed current spending as a planned use of reserves to support market development in Mexico. Trade, labor and water availability were identified as risks that could influence production and growers’ margins.
Hyam answered legislators’ questions and said staff would continue outreach and engagement with growers and retailers.
