Agriculture Minister Mitch Murphy met in Ottawa today with Island Members of Parliament to emphasize the uniqueness of the current potato situation on the Island and the positive impact the Island's voluntary restrictions had on sales to the US by other provinces.
"We know that total sales to the US by other provinces since this disaster first occurred are $61 million. We know that those sales could not have occurred had the Potato Board not imposed voluntary restrictions on domestic shipments back in November," said Minister Murphy.
He said that he wanted to ensure Island MPs are fully appraised of all the facts of the situation for their meeting with federal Agriculture Minister Lyle Vanclief on Wednesday of this week.
"That $61 million is just the beginning. What would have happened to the Canadian market had the US market been closed entirely to Canadian potatoes? The ripple effect of those potatoes backing up into the Canadian market would have meant losses of well more than $100 million," said Mr. Murphy.
The Canadian table potato market is a 100 million hundredweight market. A 50 cent per hundredweight price decrease translates into a $50 million loss.
The Minister said the Island industry's selflessness is what sets it apart and unique from other farm commodities in crises.
"Island farmers saved other producers well more than $100 million. It is time the federal government recognized their actions and fully compensated them. Aside from the fact that international trade agreements did not work for Island potato farmers, their unique situation requires federal assistance and it is required now," said Mr. Murphy.
"Certainly, there are others who are experiencing pain because of international oversupply or weather problems. They are here in Ottawa today. However, I wanted to emphasize to our MPs that the potato situation cannot be lumped in with the others. It is unique and deserves to be treated as such."
The federal minister meets later this week with representatives of the Island potato industry.