Wednesday, November 9th By David R. FrazierThe news from the J.R. Simplot Wednesday is bad any way you look at it. Loss of up to 1,000 jobs and closure of potato processing plants in Aberdeen and Nampa is not anyone’s idea of holiday cheer.
It’s even worse if you use any of the gushingly optimistic estimates about “job creation” related to the new Greek Yogurt plant about to be built at Twin Falls. Here is an excerpt from a Twin Falls Times-News newspaper editorial:
It’s even worse if you use any of the gushingly optimistic estimates about “job creation” related to the new Greek Yogurt plant about to be built at Twin Falls. Here is an excerpt from a Twin Falls Times-News newspaper editorial:
“And before you know it, the 7.57 multiplier similar to that of a cheese manufacturer can parlay the economic benefit of 400 new jobs into a number closer to 3,000.”
Even if a potato processing plant has only a 5.0 multiplier, it would be reasonable to conclude the closure of the Simplot spud processing plants would put another 4,000 Idaho workers on unemployment–this at a time when the head labor guy wants to put an end to extending unemployment bennies.
Our point is this: New businesses seldom live up to its projected benefits. Likewise, while closures are never good, they are seldom as bad as projected. Prior to the Simplot announcement, Gov. Butch Otter told a radio audience the yogurt plant was worth an additional 3-4 jobs. A former Simplot executive and family member himself, Guv Butch will have a hard time defending claims that loss of 1,000 jobs at the plants won’t mean 3,000-4000 additional job losses.
Simplot simply can’t sell all the french fries (a style of fried potato, not really from France) it has the capacity to produce. Tastes are changing. Greek yogurt (a style of yogurt, not really from Greece) is all the rage among certain cultures.
It has taken an act of congress to get potatoes back on the school lunch menu approved by the U.S. Government. Our famous potato is being maligned by health enthusiasts.
They wonder why sales are down? Try getting a plain french fry anymore. They drag it through some kind of gorilla snot coating. I can't stand batter coated fries. How anyone ever thought this was an improvement is beyond me. No wonder sales are down. How about a new product called "ORIGINAL FRIES" with none of that goop please.
ReplyDeleteMaybe the fry workers can go to work for the City of Caldwell or TVCC. This will soon be the only game in town!
ReplyDeleteI went back to the press to review and one of the challenging candidates used the word erosion. I wonder if that is what he meant. Soon fewer jobs in Caldwell and more unemployment. The bank can just have my house pretty soon. I'm sick of this.
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