Tasmanian potato growers clash with Simplot over contract terms and pricing

A dispute between Simplot and Tasmanian potato growers has intensified as the chip producer halted price talks for the upcoming season, offering 46 to 49 cents per kilo against growers' production cost of about 42 cents per kilo. The proposed contract includes a novel provision that could hold farmers financially liable for any future recalls of potato chips, even months after the potatoes leave the farm. Simplot sidestepped the traditional grower committee, urging individual farmers to sign incomplete contracts within a week, a move condemned by TasFarmers vegetable council chair Nathan Richardson as pressure tactics.

Union organizer Mike Wickham, representing the Australian Manufacturing and Workers' Union, warned that Simplot may reduce potato volumes at its Ulverstone plant by around 30,000 tonnes, threatening local jobs. The growers have appealed to Simplot's major customers, including Coles and McDonald's, for support, while Simplot maintains its engagement is professional and aims to secure certainty for the industry. A meeting between Simplot and the growers' negotiating committee is scheduled for Friday.