ConAgra's Prosser French fry plant slated for closure

COLUMBIA BASIN — The Washington State Potato Commission is blaming the upcoming May 30th closure of ConAgra Lamb Weston’s Prosser plant on Congress’s stop to a Mexican trucking program last year.

In response, Mexico placed a 20 percent tariff on US French fries, according to the commission.

As a result, the industry lost more than 32 million pounds of export business with Mexico “at a value of over $15 million,” stated Matt Harris, the commission’s director of trade, on Thursday.

Locally, 250 workers in Prosser will lose their jobs, but are expected to be relocated to other company plants, he said.

ConAgra Lamb Weston also has plants in Quincy, Connell, Warden, Othello, the Tri-Cities and in Eastern Oregon.

Those plants aren’t slated for closure, according to the company.

“When we look at what’s going on with our export business, it’s hard to say our loss of market share has not directly impacted our industry,” Harris commented. “It’s an unrelated action that has directly affected our business.”

“It’s just a hard, hard item for us in this industry,” he said. Harris questioned why the Obama administration wasn’t moving forward with a fix.

“We are not a healthy industry because of what’s happening in the economy,” Harris commented. “We are directly impacted when tariffs are in place.”

According to the company, “the decision is a reflection of the economy and a soft market for frozen potato products in conjunction with the Prosser plant being the most expensive to operate in the region.”

With the plant’s closure, Prosser City Administrator Charlie Bush said the town of 5,600 people will lose $500,000 spread across several city funds.

“It’s a tough financial impact,” he said.

Prosser is losing close to 12 percent of water revenue and its general fund will be working with 3 percent less money.

Bush also spoke of indirect impacts such as sales tax reductions because unemployed people cut back and spend less.

“It’s a hit to a momentum of community as well,” he said. “We have to make budget adjustments. We’re pretty sure we’re going to be able to carry on without a tax increase, or layoffs.”