Market

Market

Wednesday, September 7, 2011

THE POTATO "PROTEST"- REPURCUSSIONS OF POLICY CHANGES

Potato consumption in the world has remained steady more or less during the last 5 decades, though it is a staple commodity for some population in some parts of the world. Global average per capita annual consumption of 33 kg does not qualify potato to be a staple food commodity and nutritionally it cannot be termed superior to staple grains like wheat, rice, maize etc. It is considered more as a vegetable, though its high starch content of about 50% (fresh weight basis) may be an anachronism. But Potato is indeed a cheap vegetable preferred for feeding programs in the schools in the US and school lunch program covers more beneficiaries for the limited funds provided. It appears that the US government wants to restrict the quantity of potato in such programs for reasons not very clear. While nutritionally such a policy change may not have any significance, the potato growers are apprehensive about the economic impact such a decision will have on the industry. USA hardly accounts for about 7% of global production which is dominated by China with a production of more than 70 million tons and surplus potato from the US cannot find a place in the international market because of cost constraints. Here is case which amplifies the close nexus that exists among farmers, industry and the government and any one of these stake holders upsetting the equilibrium that exists now can have snow balling effect on the domestic front. Here is a take on this issue.

"As of 2008 there were an estimated 76 million students in U.S. schools. Potato farmers have to be looking at this proposed change as a meaningful threat to consumption. The ripple through agriculture will be significant. The decision will impact acres and affect farmers, potato processing companies and food service companies. Not to mention school lunch programs and school district budgets. School districts are running the numbers, knowing that potatoes are a relatively inexpensive vegetable source. Results show that replacing potatoes in school lunch programs will further run up costs on meal programs that are already under-funded. The districts see the USDA change as an unfunded government mandate that puts added budget pressure on a system that can ill afford it. But the case isn't closed yet. The National Potato Council and other industry groups have been providing information about the nutritional profile of potatoes when they are correctly prepared, and apparently the message is starting to get through. The USDA has agreed to take another look at their proposed rule change. There's no question what potato farmers across the U.S. are feeling about the USDA's proposed changes to school lunch guidelines. It will have an unprecedented impact on the entire potato industry. What's most difficult about a situation such as this is the fact that so much is out of the farmers' control. One federal policy change to one federal program would impact millions of Americans and cost untold millions of dollars in lost production and increased school lunch costs. The nutritional impact of a change limiting potato consumption in schools is arguable and negligible. Potato industry groups have done a good job of proving that. However, the economic impact of such a change would be significant. Situations like this show just how far reaching our federal farm and food policy really is".

In one way the US government must be lauded for linking the growth of agriculture to the market and providing assured outlet for the produce from the farms. Potato is a good food though there is nothing in it that can qualify this tuber as a nutritiously superior food. As a calorie provider Potato can be a component of any diet which needs supplementation with other nutrients adequately. Restricting its level to 100 gm does not make much sense because this small quantity can provide less than 100 calories while a school meal program requires about 300-400 calories. How the "potato war" as being enacted now will end remains to be seen.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

No comments: