Potato farmers strike deal with Cavendish Farms

Prince Edward Island potato farmers who grow for Cavendish Farms voted Tuesday night in favour of anew deal with the company.

Greg Donald, general manager of the P.E.I. Potato Board, wouldn't provide any details of the contract because negotiations are still underway with McCain Foods and its growers.

But, he saidthe deal represents an increase for the farmers.

"But certainly, these are challenging times both for the growers and the processors. For growers, the production costs for acres are going to increase again this year. And you know, similarly it's very challenging times for the processors, as well," Donald said.

"But, I can say by accepting this offer, both parties and in particular the growers they will know the value and volume of their contracts prior to planting this spring."

Cavendish Farms has reduced the number of process growers it deals with this year and has had to cut back on the potatoes it buys because of poor market conditions and increased costs.