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2007 - Potatoes at WSU - Washington State University

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Process Value - Methods<br />

Early Harvest<br />

Economic Potential<br />

The gross return in U.S. dollars per acre for each trial entry was calcul<strong>at</strong>ed using an early-harvest<br />

mock processing contract similar to those used by <strong>Washington</strong> St<strong>at</strong>e processors. All assumptions<br />

are listed below.<br />

Contract Assumptions:<br />

1. Base price of $102/ton.<br />

a. Base price is an average of early-harvest Ranger Russet contracts from <strong>Washington</strong><br />

processors based on an August 1, <strong>2007</strong> harvest d<strong>at</strong>e.<br />

2. Market Yield (U.S. #1s & 2s) of tubers gre<strong>at</strong>er than 4 oz, was multiplied by the base price.<br />

3. Undersized market-grade pot<strong>at</strong>oes less than 4 oz (process culls) were valued <strong>at</strong> $40/ton.<br />

4. Specific gravity reject level for Ranger Russet contract = 1.074.<br />

5. No premiums and penalties were applied for tuber fry color, sugar content, internal defects, or<br />

bruise.<br />

L<strong>at</strong>e Harvest<br />

Economic Potential<br />

The gross return in U.S. dollars per acre for each trial entry was calcul<strong>at</strong>ed using a l<strong>at</strong>e-harvest mock<br />

processing contract. Process-market values are based on criteria (below) similar to th<strong>at</strong> used by WA<br />

pot<strong>at</strong>o processors. Production costs per acre were not applied. Direct delivery contract assumptions<br />

are listed below.<br />

Contract Assumptions:<br />

1. Base price per ton was $77 for market (U.S. #1 & 2) grade tubers.<br />

2. Premiums for 6 oz and larger market grade tubers of $0.60/ton for each percentage point<br />

gre<strong>at</strong>er than 50% they contribute to the total tuber yield composite, up to 70%, with a maximum<br />

of $12.00/ton. Penalties were $0.60/ton for each percentage point below 50%. Below 48%,<br />

penalties were $1.20/ton with no rejection minimum.<br />

3. Penalty for 12 oz and larger market grade tubers of $0.60/ton for each percentage point gre<strong>at</strong>er<br />

than 35% they contribute to the total yield composite, with no rejection minimum.<br />

4. Premiums for average tuber specific gravity values above, and penalties for values below, 1.076.<br />

Premium per CWT is $0.05 <strong>at</strong> 1.077, $0.20 <strong>at</strong> 1.078, $0.30 <strong>at</strong> 1.079, $0.40 <strong>at</strong> 1.080, $0.50 <strong>at</strong><br />

1.081, $0.60 <strong>at</strong> 1.082, $0.70 <strong>at</strong> 1.083, with a maximum of $0.70 for 1.084 through 1.088. Above<br />

1.088 the premiums drop: $0.65 <strong>at</strong> 1.089, $0.60 <strong>at</strong> 1.090, $0.55 <strong>at</strong> 1.091, $0.45 <strong>at</strong> 1.092, $0.35<br />

<strong>at</strong> 1.093, $0.25 <strong>at</strong> 1.094, $0.15 <strong>at</strong> 1.095. Above 1.096 penalty of $0.15/CWT. No premium or<br />

penalty for 1.076, $0.50 penalty <strong>at</strong> 1.075, for each 0.001-point decline from 1.075, lots were<br />

penalized $1.00/CWT with no rejection minimum.<br />

5. Premium of $0.03 for each percentage of bruise-free tubers above 54% of total yield, up to a<br />

maximum of $0.75 for > 79% bruise free tubers; Below 54%, no premium or penalty.<br />

6. Undersized market grade pot<strong>at</strong>oes less than 4 oz (process culls) were valued <strong>at</strong> $40.00/ton.<br />

7. No premiums or penalties were applied for tuber fry color, sugar content, or internal defects.<br />

<strong>2007</strong> Pot<strong>at</strong>o Cultivar Evalu<strong>at</strong>ions 5 <strong>WSU</strong> Pot<strong>at</strong>o Research Group

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