Recession still hitting french fry market

The Irving-owned Cavendish Farms has reduced the number of potatoes it's buying this year on P.E.I. for processing by 10 to 15 per cent.

President Robert Irving told CBC News Monday the market for french fries has still not shown signs of recovery.

"With the recession that we've just had down in the United States and here in Canada, people weren't travelling out into the restaurants to eat as much, and therefore the demand of our products dropped off," said Irving.

"The concern is will those markets come back to the level they were say two or three years ago. We haven't seen it yet."

The cut represents about 45 million kilograms of potatoes.

Irving said some of the more than 100 growers with Cavendish Farms have had their contracts cut altogether. Growers with larger operations can be more cost competitive, he said, and the company may be moving in the direction of using bigger producers in future.

McCain growers on P.E.I. will vote on a new contract Tuesday night.