CARBERRY, Man. (Staff) – With expensive planting and harvesting equipment behind him and rows of neatly hilled potatoes stretching before him, Bruce Hood talks straight to a group of agriculture students about getting into the business.
“It’s not that difficult if you’ve got deep pockets. I suspect to start, you’d likely need almost half a million dollars to really get in and be viable,” Hood said, mentioning the costs of equipment, irrigation and storage.
That’s why Hood is so optimistic about a recently announced expansion to the NestlŽ processing plant in Carberry, Man., not far from where he and his brother Barry have grown potatoes for 35 years.
Read Also
Land crash warning rejected
A technical analyst believes that Saskatchewan land values could be due for a correction, but land owners and FCC say supply/demand fundamentals drive land prices – not mathematical models
Millions more kilograms
The plant plans to increase production of frozen french fries by 35 percent, meaning it will need to contract for another 78 million kilograms (175 million pounds) of potatoes to add to the 225 million kg (500 million pounds) it already buys.
Hood, who is also president of the Keystone Vegetable Producers’ Association, said he thinks the expansion will require between 8,000 and 9,000 more acres of potatoes in Manitoba. This year, about 57,000 acres will be planted in the province.
“I suspect that there will be opportunities for new growers to get in because I would be surprised if the existing growers pick that all up,” Hood said.
David Mackenzie, factory engineer, said the company will spend $18 million on new buildings, new equipment and modifications to equipment. One building is going up now, but most work will start in February.
Mackenzie said the plant, a joint venture between NestlŽ and Simplot, will meet an increase in demand in both the domestic and foreign markets for frozen french fries. One-third of the potatoes processed at the plant are exported to the United States.
There are 125 potato growers in Manitoba who last year produced a total yield of 1.5 billion pounds or 675 million kg, Hood said. Manitoba has the second-largest production of potatoes after Prince Edward Island.
