Simplot potato growers agree on new price deal

Potato growers have today agreed on a new price and contract offering with Simplot.

Following several months of tense negotiations culminating in the tractor rally in early October, Simplot and growers have reached agreement. This followed direct negotiations on Wednesday morning between the TasFarmers Growers Committee and USA management based in Boise Idaho, USA.

“This new offer is a significant result for growers,” said TasFarmers Growers Committee chair, Leigh Elphinstone.

“While Simplot have achieved a cut to the base price, growers are able to claw that back through additional productivity incentives.

“Given the difficult circumstances we have been in, the Committee sees this as a terrific outcome.

“Growers can now get on with farming instead of negotiating,” said Mr Elphinstone.

TasFarmers CEO Nathan Calman said, “This is a good outcome for growers and the broader industry.”

“While this doesn’t see the rise in the gross margin that reflects the increase in growers’ costs, it does reverse the massive cut that Simplot’s USA managers were looking for.

“This also shows the importance of growers working together through TasFarmers to get the best possible outcome.

“Last week’s tractor rally and strong demonstration from growers certainly had a massive impact – we would not have got to this point without that action,” said Mr Calman.

TasFarmers focus now turns to the impact of frozen imports from overseas, undermining local growers.

“While we have settled the price for processing potatoes for this season, the long-term battle still remains that overseas cheap imports of poor quality are undermining local growers,” said Mr Calman.

“Farmers shouldn’t have to compete on the same terms as ultra-low cost international produce with low or no regulations determining quality.

“There is no reason to import any frozen vegetables from overseas. We produce more than enough vegetables for Australian consumers at a price and quality that everyone can enjoy.

“Our supermarket chains are great supporters of the local fresh vegetable sector – but why support some growers but undermine others?” said Mr Calman.