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United Potato Partners Program
Formerly called the United Value Added program, the United Potato Partners Program and its benefits are explained in question and answer format.
Q: What is the United Potato Partners Program?
A: The United Potato Partners Program has two objectives: (1) maximize the price the potato producer receives for his annual crop; and (2) minimize the cost of gathering the market data that allows the producer to maximize price.
Prices received for potatoes in the past two marketing years were positively affected by the market intelligence supplied by United’s database. The database matches supply to demand such that grower returns remain positive and stable.
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There is a cost to acquiring, analyzing, and implementing the data relating to potato markets. Until now, these costs have been borne by United’s growers. Corporations that supply potato growers with everything from potato handling equipment, to tractors, to field chemicals and fertilizers, irrigation equipment, and packing and packaging equipment can now, through a carefully structured program, offset the cost of the database nationally and regionally through the United Potato Partners Program.
Q: Why form strategic alliances among United, its growers, and vendors?
A: A strategic alliance is an agreement among organizations that aims toward a common objective. The objective that a potato grower has in common with each vendor is that each party wishes to survive and thrive in the potato business. Profitability for each party depends upon the value they can derive from dealing with each other.
Q: Can each grower continue with a local vendor of his choice even though United has a relationship with vendors at the national level?
A: The advent of United Potato Partners Program does not mean that the local vendor and grower relationship goes away. The grower can rest assured of his freedom to obtain the best possible value from his local vendor while United engages vendors and manufacturers at the national level.
Millions are spent annually to advertise products to growers. Is that the most effective use of an advertising budget? Can relationships between suppliers and growers take a more effective form? The United Potato Partners Program answers these questions in a positive way.
Q: Don’t manufacturers and vendors already review their marketing channels consistently to become more competitive and keep prices as low as possible?
A: Manufacturers often believe additional cost reductions are not possible. When the goals of the strategic alliance are viewed cooperatively, savings and benefits emerge for both the grower and the vendor.
Q: Can you give an example of the kinds of savings a grower can expect from the strategic alliances?
A: This program is still in infancy but developing quickly. While the participation from any one vendor may not always lower crop inputs, the real value is found in the vendor’s willingness to fund the database and other programs of United that help keep grower returns positive.
Q: Can you give an example of how vendors can benefit?
A: Vendors who sign strategic alliance agreements with United get an immediate inside track for promoting their products to growers. Vendors can provide incentives. Vendors can accumulate pertinent grower data. Vendor’s opportunity to communicate effectively with the grower increases greatly through many mechanisms: the United website, newsletters, grower meetings and more.
Q: What is the future of the United Potato Partners Program?
A: The production of potatoes is concentrated in the hands of specialized growers whose per acre inputs are very high. This concentrates enormous purchasing power in the hands of these producers making them much sought after customers. Potatoes are not the only crop potato growers produce. Taking into account all rotational crops, the vendor with products additional to those required for potatoes finds a ready market for those products. Growers and manufacturers must depend on each other for success, and that makes strategic alliances such as the United Potato Partners Program so important.