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The Fresh Weighted Average (FWA) and Grower Return Index (GRI) are only collective indicators of fresh potato market direction and should only be used as such. They do not reflect any individual grower’s actual returns or expectations for pricing, and are simply a gauge based on average market factors.


Fresh Weighted Average

The FWA is similar to a shipper’s average selling price. The mid-point of “mostly” prices reported by USDA for major SKUs are used to determine the FWA. Those prices are multiplied by the weight assigned to each item (as listed in the table below) to calculate that SKU’s contribution to the FWA. Those values are added together to determine the FWA.

FWA table.png

Grower Return Index

Converting FWAs to GRIs is relatively straight forward. The first step is to subtract the packing margin from the FWA. That number is multiplied by the packout percentage to determine the FWA’s contribution to the GRI. The percentage of potatoes sold at offgrade prices is assumed to be 1 minus the packout percentage. That number is multiplied by the “Residual Value” to determine the contribution of offgrade potatoes to the GRI. The two numbers are added together to form the GRI.

GRI table.png

Note: FWA and GRI calculations for the San Luis Valley may vary based on data collected by the local cooperative.

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