Potato growers from Tasmania have jointly rejected the price offer from potato processor Simplot. The growers on the island, which is part of Australia, say they receive too little for profitable cultivation. This while they see that Simplot is making huge profits.
Simplot's Australian division made a profit of more than $2018 million for the American parent company in 62. And that is painful for Australian growers who sometimes cannot even recoup the costs of potato cultivation. This is according to Trevor Hall of Simplot's Potato Growers Group potatopro.com.
Small increase
This concerns approximately 140 growers in Tasmania who sell the potatoes to Simplot. They want, in Hall's words, a small increase of $4 per 100 kilos. They also want a two-year contract before they want to enter into negotiations again. Simplot offers growers $2 more, with the price increasing $1 per year over a 3-year contract.