The Saskatchewan government is increasing its stake in the province’s potato industry.
Earlier this month cabinet gave Sask Water the go-ahead to spend up to $2 million to buy shares in potato storage facilities owned by Broderick Potato Storage Inc. and Valley Potato Storage Inc.
Three new facilities are being built by the Broderick group east of Outlook, and an existing building at Lucky Lake is being expanded.
Sask Water minister Maynard Sonntag said it is not the government’s intention to be long-term owner of the buildings. But after aggressively promoting diversification into potatoes, “it would be our view that it is irresponsible to withdraw from the industry as storage is now required,” he said.
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In 1996 the province set up Spudco, a division of Sask Water, to develop a supporting infrastructure for the expanding potato industry. That included financial support for other storage buildings at Riverhurst, Lucky Lake and Tullis.
Spudco also formed partnerships with two farmers and two corporations to grow more potatoes in the Lake Diefenbaker area.
This year almost 8,500 acres were grown, Sonntag said, and more storage has become necessary. He said the small grower groups are the ones needing the storage.
Government involvement in one area has caused growers in other parts of the province to cry foul.
Sonntag said he sees the government’s role as a stimulator, not a permanent, predominant player.
“It will always be a judgment call … as to how involved (government) should be,” he said.
