Heinz Frozen Foods, manufacturer of the Ore-Ida retail brand, is changing the procurement process for the potatoes for its Ontario, Ore., potato processing plant. The company recently announced it is dropping the contracts with potato farmers in eastern Oregon and southwestern Idaho.
Heinz will instead contract with the Oregon Potato Company (OPC).
Many potato growers in Oregon’s Malheur and Baker counties have had contracts with Heinz for 20 or 30 years. Mark Ward leads the Malheur Potato Bargaining Association and is a second-generation farmer. “We grow some very nice potatoes up here,” he said. “We would like to continue to do this. It’s a big change. It’s uncharted territory. This has never happened before. We are unsure if this is long-term.” Ward says his group has started talking with the Oregon Potato Company.
Michael Mullen, senior vice president of corporate and government affairs for Heinz, explained the move in an email to Oregon Public Broadcasting, which first reported on this development: “This will allow both Heinz and OPC to take advantage of economies of scale to improve efficiency and productivity and further strengthen the Ore-Ida brand, while continuing to deliver the best quality and value to consumers,” he wrote. “This was a difficult decision for Heinz because it will affect many long-term relationships with growers in Oregon, Idaho and Washington.”
Source: Potato Pro