Simplot accused of bullying tactics against Tasmanian potato growers

UPDATED:

Simplot has rejected claims from TasFarmers that it was using bullying tactics to coerce potato growers into signing new contracts.

A company spokesperson said it valued its Tasmanian potato growers and the role they played in supplying its processing operations.

“We have been actively engaged in negotiations regarding the upcoming season. 

“In determining commercial arrangements, a range of factors are considered, including market conditions, production requirements, input costs, and operational considerations.

“As global competition and cost pressures continue to increase, it is important that arrangements support a sustainable and competitive future for Tasmanian potato growers and processors.”

Simplot said it had engaged in fair negotiations with Tasmanian potato farmers.

“We reject any suggestion that Simplot has acted inappropriately or sought to pressure growers during these discussions.

“Our engagement is conducted professionally, respectfully and in good faith.

“Our priority remains reaching arrangements that provide certainty for growers, support Tasmanian potato production and help ensure the ongoing competitiveness and viability of Australia's potato processing industry.”

EARLIER:

TasFarmers has accused Simplot of using bullying tactics to coerce potato growers into signing new contracts.

Simplot told the TasFarmers Simplot Potato Committee via email that it would terminate negotiations with the committee and instead speak to farmers individually.

Tasmanian potato growers and Simplot have had a tense relationship over the last few years.

Negotiations between growers and the company stalled last year, with potato farmers holding a tractor rally in protest against Simplot.

TasFarmers Chief Operating Officer Neil Grose said Simplot has pushed the price of potatoes down for the past two seasons, resulting in growers’ margins falling by over 60 per cent.

He said the company was now singling out individual growers and pressuring them to sign contracts offering a lower price per tonne.

“Simplot terminated discussions with the growers’ representatives via an email on Saturday morning, despite the negotiations being conducted in good faith to that point,” Mr Grose said.

“Growers are feeling bullied by the sheer financial might of Simplot and fear that if they don’t sign up, they will lose their contracts.

“Simplot is showing itself to be an extremely poor Australian corporate citizen, taking advantage of vulnerable Tasmanian farmers who have made significant financial commitments to the potato industry.

“Why are growers being required to sign acceptance of commercial terms that Simplot says will be incorporated into an updated grower agreement, when Simplot has not yet provided growers with that agreement?”

Mr Grose said growers’ representatives should be provided with the complete proposed 2026/27 Grower Agreement and allowed to review it and obtain advice before being required to sign acceptance of commercial terms that will form part of that agreement.

“Simplot had committed to working with growers on the new contract – what has changed?

“Farmers are in a very difficult position – how on earth do Tasmanian family farmers combat the global strength of Simplot?”

Potato growers are meeting at Deloraine on Tuesday to discuss next steps.

Simplot has been contacted for comment.