Farmers Australia not included in the proposal for chip factory

The cost price for potato cultivation in Australia is approximately 20.000 Australian dollars per hectare (€13.567 per hectare). The price increase of 105 Australian dollars per tonne (€71,23 per tonne) that Simplot has offered is insufficient to cover those costs. “Crop protection, diesel, equipment costs, everything has become more expensive,” said Scott Rockliff, a farmer and contractor at ABC News. "Our growers cannot continue to grow potatoes for the current potato price. Most of us certainly want to grow potatoes for the next 20 years. Then we have to be able to keep our heads above water, otherwise the cultivation will die a silent death." Farmers are already working on alternatives to potato cultivation, such as keeping extra sheep, cattle or growing other crops.

High cost price
By increasing the potato price, a bowl of fries will become a few cents more expensive, according to the farmers. This is manageable for consumers if you look at other price increases. According to agricultural specialist David McKinna, this is more nuanced. Most fries are sold in fast food chains such as McDonald's. Such companies operate worldwide and have a standardized price and quality policy. "In 2011 we conducted research into the cost of potatoes in Australia. It is substantially higher than in other countries, even higher than in New Zealand," says McKinna at ABC. The major fast food chains are active in different countries and therefore know what the prices are there. "If the price for fries in a certain region becomes too high, it makes more economic sense for a company like McDonalds to import the fries from another country," says McKinna. The number of French fry potato growers in Australia is limited. Simplot negotiates with approximately 140 growers. The largest competitor McCain is in discussions with approximately 70 growers about a new price.