USDA ANNOUNCES PLANS FOR $23.5 MILLION POTATO PURCHASE

                                              Release No. 0150.97

                                Connie X. Crunkleton 202/720-8998
                                             ccrunkleton@usda.gov
                                       Jerry Redding 202/720-6959
                                                jredding@usda.gov


USDA ANNOUNCES PLANS FOR $23.5 MILLION POTATO PURCHASE

     WASHINGTON, May 5, 1997--Agriculture Secretary Dan Glickman today
announced that the U.S. Department of Agriculture plans to buy nearly $23.5
million worth of processed potato products for donation to child nutrition and
other domestic food assistance programs.

     Glickman said the purchases are being made to alleviate economic
pressures currently experienced by farmers.  U.S. potato supplies in storage
are 16 percent higher than a year ago, and more than 17 percent higher than
the 5-year average.  Returns to growers are down 8 percent from a year
earlier, while production costs have increased.

     "This purchase will assist our nation's farmers while providing a food
commodity that is popular in our child nutrition and other domestic food
assistance programs," Glickman said.

     Depending on quantities offered and prices bid, USDA expects to purchase
more than 51 million pounds of processed potato products.  These products and
amounts include 2,790,000 pounds of dehydrated potato flakes, 3,492,000 pounds
of dehydrated potato granules, 6,839,040 pounds of dehydrated potato slices,
4,039,200 pounds of frozen oven fries, 11,880,000 pounds of frozen potato
rounds, 11,880,000 pounds of frozen potato wedges and 9,363,600 pounds of
canned sliced potatoes.  

     The planned purchase will be made from offers that must be submitted on
a delivered-to-destination basis.  Details and specifications on the planned
purchase have been mailed to vendors.  Offers to sell must be received by 1:00
p.m. EDT May 16 and should be sent to the Commodity Procurement Branch, Fruit
and Vegetable Division, Agricultural Marketing Service, USDA, P.O. Box 23693,
Washington, D.C. 20226-3693.  Awards will be announced no later than June 2. 
Delivery dates for products purchased are July 1 to Oct. 31.

     Further information on the planned purchase may be obtained from the
Commodity Procurement Branch at 202/720-6391.

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