Potato industry explores feasibility of a national research council

Monday, July 8, 2013

by SUSAN MANN

Canada’s potato industry needs a national promotion and research agency to help it deal with declining consumption along with other changes taking place, says Canadian Potato Council chair Joe Brennan.

The New Brunswick potato farmer notes fresh and processed potato consumption has been going down for a number of years “so there’s a feeling in the industry that we need to put more effort and focus on promotion and marketing. The best way to fund those efforts is on a national basis.”

The Canadian Horticultural Council and the potato council have received funding to do a feasibility study for a national agency and check off.

David Jones, horticultural council manager of potato industry coordination, says the study is to be completed by the end of this year. Phase one includes gathering background information, such as what is required to establish the agency and what is being done by other organizations that have a check off. This phase also includes developing several options of how the agency would work, how it would be organized and what the levy structure would be.

The second phase would be consultations among the provinces that are members of the potato council to get feedback on the options and determine the level of grower support, he says. The final phase is a report with recommendations on whether to proceed with establishing the agency.

Eighty-five per cent of the funding comes from the federal government, issued through its adaptation councils in Prince Edward Island, New Brunswick, Manitoba and Quebec. The remaining funding comes from all provincial potato boards across the country.

Jones declined to say how much the study costs.

Brennan says another change hitting the potato industry is the federal government is requiring it, like many other commodities, to pay a percentage of research costs. “In the past, almost all research was funded by governments of different levels,” he explains. The potato industry will be expected to pay 25 per cent of the research costs.

“Research is an ongoing necessity in this world to try and keep improving efficiencies and competitiveness,” he says.

The challenge there is to “find a mechanism” to get money to pay industry’s share of research, he notes.

If it goes ahead, the national potato agency will be established under the Farm Products Agencies Act. The Farm Products Council of Canada supervises agencies created under the Act to ensure they operate within their mandates. Currently, there is only one promotion and research agency established under the Act and that’s the Canadian Beef Cattle Research, Market Development and Promotion Agency. BF