Potato farmers reach price agreement with Simplot

Tasmanian potato farmers have accepted a revised offer from Simplot after months of negotiations that culminated in spud growers staging a large protest last week.

The offer was agreed to this afternoon at a meeting with potato producers following direct negotiations on Wednesday morning between the TasFarmers Growers Committee and Simplot’s USA management.

TasFarmers Growers Committee chair Leigh Elphinstone said the new offer was a significant result for spud farmers.

“While Simplot has achieved a cut to the base price, growers are able to claw that back through additional productivity incentives,” Mr Elphinstone said.

“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.”

TasFarmers CEO Nathan Calman said it was a good outcome for growers and the broader potato 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,” Mr Calman said.

“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.”

Mr Calman said its focus now turned to the impact of frozen imports from overseas on Tasmanian potato growers.

“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?”