Simplot and Tasmanian potato growers reach contract impasse

Tasmanian potato growers and the US-based multinational Simplot remain in a contract dispute ahead of the upcoming planting season. The impasse involves disagreements over pricing and new contract terms that could hold growers liable for future chip recalls.

Growers have reported significant revenue drops in recent years, with some seeing a 57 to 60 per cent decrease in returns. Simplot has proposed prices between 46 and 49 cents per kilo, while farmers face high production costs of approximately 42 cents per kilo.

In addition to pricing, farmers and the Australian Manufacturing Workers Union (AMWU) have raised concerns regarding Simplot’s negotiation tactics. The union and grower representatives have accused the company of attempting to bypass the grower committee by approaching individual farmers directly with incomplete contracts.

The dispute carries potential consequences for the local economy; the AMWU warned that if farmers cannot afford to supply the Ulverstone processing plant, which employs over 450 people, the facility could become obsolete, potentially forcing the company to import potatoes for its Birds Eye and Edgell brands.