I always love flying into Boise and seeing their nice welcoming sign in the baggage claim area. It always cracks me up...
Posted on 05/05/2017 9:32:29 PM PDT by 2ndDivisionVet
BURLEY, Idaho — Potato farmers say the expansion of the local McCain Foods USA processing plant should significantly increase demand for their crop and boost the area’s economy.
McCain officials announced the $200 million investment this week. The expansion should be operational by the late summer of 2018 and will employ 180 new workers.
“From my standpoint, that’s as big of a thing as we could have had announced in this area,” said Mark Darrington, a McCain grower from Declo. “For this to come right into the heart of our production area, this is a huge win for agriculture and a huge win for the community.”
McCain officials said in a press release the expansion is in response to increasing demand for their frozen potato products such as french fries in North America and the world. The announcement also comes amid a season in which a large crop has driven fresh spud prices well below Idaho growers’ production costs, leading the state’s shippers to drop their prices to increase their market share.
“In 2016, we reviewed all of our North American sites and narrowed the potential for expansion to a handful that could best help us meet the growing demand for McCain products,” Jeff DeLapp, McCain’s Regional President for North America, said in a press release. “In the end, we chose Burley due to its proximity to quality potatoes, availability of skilled workforce and strong community and state level support.”
The Canadian-based company is the world’s largest manufacturer of frozen fries and has done business in Burley for two decades.
Officials at the Idaho Department of Commerce have heard rough estimates that the expansion, at full capacity, will require production from an additional 15,000 acres of potatoes. Idaho farmers planted 325,000 potato acres in 2016, according to USDA.
Idaho Potato Commission Chairman Ritchey Toevs — an Aberdeen processed potato grower — said McCain has a reputation for demanding the highest quality spuds.
“Another 15,000 processed acres, that’s significant,” Toevs said. “It will give high-quality potato producers a marketing opportunity.”
Commission President and CEO Frank Muir wrote a letter to McCain a year ago urging them to expand in Idaho and believes the company’s choice “continues to solidify the strength of the Idaho brand.”
“I would say they’re recognizing once again how important it is to have a strong foothold in the No. 1 potato state in the U.S.,” Muir said.
Factoring in an economic multiplier, Joel Packham, University of Idaho Extension educator for Cassia County, said the expansion should directly and indirectly create 650 local jobs. He also believes it will lead to increased competition for land rentals and a slightly higher price floor for contracted potatoes.
Officials estimate the expansion will add $560 million to the state’s gross domestic product over the next two decades.
The project will benefit from state and local financial incentives. Under the state’s tax reimbursement incentive, McCain will have 30 percent of the income, sales and payroll taxes resulting from the expansion reimbursed during the next 15 years.
Burley City Administrator Mark Mitton said his city provided technical assistance to help Cassia County establish a revenue allocation area for the project. The county will freeze general property taxes within the expansion area at pre-development rates and divert the tax revenue resulting from the expansion toward infrastructure projects to help McCain over 20 years.
“There’s a lot more potato production that will be needed to run this plant, and that’s good for the farmers, and 180 new jobs is great for the community,” Mitton said.
McCain operates at 51 locations on six continents, employs more than 20,000 people and has global sales of $6.2 billion.
Local town of 10,000 residents...those 180 jobs will go far and help on local tax revenue. Everyone benefits in the end.
“expansion of the local McCain Foods USA processing plant should significantly increase demand for their crop”
Wow...talk about economic ignorance! All it takes to increase demand is an increase of supply. Nothing to it. Just keep building factories...there can never be an oversupply!
Sounds like the Obanomics School of Ignorance that Obumbler attended.
“Now...with more golf balls!”
I thought that too, but I believe what they mean is that a food processor is expanding, creating a greater demand for more raw product (potatoes).
Poorly written headline.
Increase in Supply <> Increase in Demand. They are independent variables.
I never expect writers to get basic economics right.
It’s a quibble, though. Great news about the plant expansion!
Yep, I get it. I think the processor sees a market opportunity and is growing to monetize a (perceived)increased demand.
This creates an increased demand for the potato suppliers.
The article does not explain this clearly, seeing only good news for the farmers.
Hey McCAIN. Promote your “Potatoe Pancakes” . They are the best but most stores in the DC area don’t carry them anymore, just those stupid looking smilely faces.
Can you get Scrapple? My wife is from Philadelphia.
>> Poorly written headline.
I agree, but for a different reason. When I saw it, my first thought was “McLame? F*ck him!!!” (-:
Yeah but I wonder how many refugees the Government will make them hire since Idaho Government is in bed with the refugee resettlement?
Just West of me is a small town called Manhattan, MT.
Each summer rows and rows of trucks line up to be filled with seed potatoes grown in Manhattan.
All of those trucks drive back to Idaho...
Great potatoes, BTW!
Well...the other question is how many of the 180 jobs will be $9-an-hour jobs? My guess is 90-percent. But if you were a kid barely graduating from high school....any job is worth taking.
So they are really Montana potatoes they are selling. Maine, the better potatoes state does not need to important our spuds.
McCain also controls our industry which is primarily in far northern Maine.
I always love flying into Boise and seeing their nice welcoming sign in the baggage claim area. It always cracks me up...
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