Doubly whammy on spud front as McCain ditches growers

Global potato processing giant McCain Foods has followed the lead of Simplot and cut off negotiations with the TasFarmers Growers Committee.

McCain has unexpectedly cut negotiations off with the growers’ representative group and is pursuing a $15 a tonne cut to the price of processing potatoes.

This follows a cut of $19.50 a tonne in 2025, which was agreed with growers to help sustain the processor.

“Negotiations had been continuing in good faith with McCain, with what growers felt was a productive relationship suddenly terminated by McCain," Growers chairman Glynn Williams said.

“The Growers Committee started discussions with McCain early in 2026, with the expectation that a reasonable arrangement could be reached well in advance of this planting season.

“It is now the beginning of October, growers have ground worked up and ready to plant, and now they will receive an ultimatum from McCain to either take the cut or don’t grow.

“The cost of production is skyrocketing, diesel is approaching $3 a litre, fertiliser is twice last season’s price, interest rates are about to rise and employment cost are surging as well, yet growers will have a week to decide if they take a cut or don’t grow spuds at all.

“Consumers are only seeing their prices rise in the supermarket, so why are farmers getting smashed?”

TasFarmers CEO Nathan Calman said that the strategy seems to be a pattern from the large processors.

“Simplot were quite brutal in the way they put their ultimatum to their growers, and we thought that McCain would be different,” he said.

“Unfortunately, Tasmania’s family farmers are now being pressured by the worlds’ largest potato processor to accept a cut or don’t grow.

“Margins in potato growing have fallen massively in recent years, to a point where many growers are in a very marginal position.

“Cutting off negotiations with the very growers who provide the raw product is short sighted and not in the best long term interests of McCain, nor Tasmania.

“TasFarmers calls on McCain to return to discussions and find a common pathway that supports the processing industry and allows growers to maintain a sustainable margin."

Mr Williams said that for McCain to drag out discussions since February and then issue an ultimatum right on the cusp of planting is unfair and disrespectful to growers.

“Growers have always been open to pursue ways to reduce costs and preserve margin, but it seems that for McCain it is all about maintaining their profit margins at the expense of Tasmanian farmers,” he said.