Simplot returns to negotiation table with TasFarmers Potato Growers Committee

Simplot has come back to the table to negotiate with the TasFarmers Potato Growers Committee after indicating it would be taking a hard line on commercial arrangements and price this season.

At a meeting on Friday it agreed to revise a two-page draft contract that had been issued to some growers in an attempt to circumnavigate collective bargaining.

The contract didn’t fully explain the terms around individual agreements and at a growers meeting in Deloraine last week farmers unanimously agreed to reject the first draft.

Field staff will be revisiting growers over the next week to explain what has changed.

Potato Growers committee chair Leigh Elphinstone said that it was good that Simplot hadn’t “locked the door” and that there was opportunity for open dialogue.

“While we will continue to have discussions on terms, where we want to be on price and where Simplot is on price is a fair way apart,” Mr Elphinstone said.

“But while we’re still having good discussions we will stay positive.”

However both growers and the processor have lawyered up and the fight for a deal that will return a profit for growers could extend well into the planting season.

The price being offered following initial negotiations was a 2.5 percent price cut on last year on top of an unavoidable 7-8 percent rise in costs for farmers, resulting in a halving of income compared to two years ago. 

“Basically Simplot is just trying to get the lowest possible price per tonne of potatoes,” Mr Elphinstone said.

“But the season in Europe has been extremely poor so there will be no importing spuds from there, and they will be aware that consumers don’t want to be reliant on imported products.

“I think they’re quite committed to being here in Tasmania - they’re just not wanting to pay a price that is fair and reasonable to the farmers.”