TasFarmers calls simplot price cut to potato growers “unacceptable”

Tasmanian potato growers growing for Simplot met today in Deloraine to discuss Simplot’s move to decrease potato prices in Tasmania for the next season.

“The move by Simplot to reduce prices to growers is simply unacceptable”, said the chair of the Simplot Potato Growers Committee Leigh Elphinstone.

“Growers, like all other farmers, have seen a continual rise in input costs that must be recognised by Simplot as they determine the agreed price for this coming season.

“It costs on average around $22,000 a hectare to establish and maintain potatoes, which is a significant expense and risk for growers, all of whom are family-based farmers.

“Add to this the volatility of global markets and supply chains for critical inputs such as fertiliser, fuel and essential chemicals and farmers are looking at a very marginal crop.

“Simplot’s demand for a 6% cut in price effectively is a 32% decrease in the gross margin for growers,” said Mr Elphinstone.

TasFarmers CEO Nathan Calman also observed to growers at the meeting that other costs are also increasing that are out of the control of growers.

“Costs such as local government rates, insurance, fixed operating costs and the rise in registration charges for farm vehicles also compounds the issue for growers,” he said.

“Farmers can no longer be the sponge that soaks up price decreases and input cost increases.

“If this trend continues it won’t be long before any sort of vegetable cropping for processing will become unviable, placing at risk the downstream processing industry in the state.

“TasFarmers urges Simplot to come back to the negotiating table with a sensible offer that represents a fair deal for farmers,” said Mr Calman.