Tassie growers spitting chips over Simplot spud contract

Tasmanian potato growers ongoing contract dispute with US French fry giant, Simplot In short: For another year, Tasmanian potato growers have reached an impasse with chip manufacturer Simplot. They are in dispute over a new contract that could make growers liable for future chip recalls, long after the potatoes have left the farm. What's next? Simplot has agreed to meet with the grower committee on Friday. A bitter stalemate between frozen chip manufacturer Simplot and its Tasmanian suppliers has once again escalated, just weeks out from planting early potatoes for French fries. Earlier this month, the US multinational pulled the pin on price talks for the upcoming season. Growers rejected Simplot's proposed price reduction, resulting in a 57 per cent drop in returns for their potatoes from two years ago. Potatoes are the most valuable agriculture sector in the state, but they're also the most expensive crop to grow, costing around $25,000 a hectare or 42 cents a kilo. The price Simplot wants to pay farmers this season is between 46 and 49 cents a kilo. Growers threatened by Simplot's tough talk Farmers aren't just concerned with the price, but with their treatment by Simplot. The company has cut potato volumes and cancelled a number of contracts. Then, in an unprecedented move, Simplot bypassed the grower committee that negotiates the contract on behalf of around 150 farmers. Instead, it approached individual growers to sign incomplete contracts before they viewed a new supply agreement outlining changes to terms and conditions. Those growers were given seven days to sign the agreement, after which Simplot said it "may accept or reject at its sole discretion". TasFarmers vegetable council chair Nathan Richardson said Simplot's behaviour is out of line. "That's created massive pressure on the individual grower," the north-west potato farmer said. "Operating under duress or being signed under duress is never a nice position to be put in." Mr Richardson said Simplot's grower committee has also questioned the legality of the new offer. A new condition in the agreement could also make farmers liable if there was a recall on potato chip products, even months after potatoes have left their farm. "How we see it is that the farmer will be liable for the cost of that recall and any subsequent legal proceedings," Mr Richardson said. "We've got to take the worst possible scenario in today's litigious world of corporatism. Union linked to chip factory backing growers Mike Wickham has been dealing with Simplot for the last 12 years as the Tasmanian organiser of the Australian Manufacturing and Workers' Union. He said the company has indicated it'll cut back the potato volume through its Ulverstone plant by around 30,000 tonnes from its 2027 harvest. "Without potatoes, there's no manufacturing of chips,"Mr Wickham said. "So, if they drive these farmers too far into the dirt with a price where its unsustainable to grow the crop, then it's a big impact on this Ulverstone site and its employees ... that's our concern." The grower committee have approached Simplot's customers, Coles, Woolworths, McDonald's and KFC, to outline their predicament and concerns about the rise in imported potato chips. So far, only Coles and McDonald's have responded. Growers say they're reluctant to speak out about Simplot's behaviour for fear of retribution. "What a terrible feeling our growers have that, in fear of speaking out, their volume of spuds they grow, or the whole contract may be put in question by the company, " Mr Richardson said. "I mean that is just an awful way to do business in Australia. "It's not the Australian way." Simplot has not responded to questions for this story, but last week the company said in a statement "it rejected any suggestion it has acted inappropriately or sought to pressure growers during these discussions". The company also said its "engagement is conducted professionally, respectfully and in good faith". It also added that "its 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". The company has agreed to meet with the grower negotiating committee at the end of the week. [Image text:] TASSIE MADE WITH SPUDS CRISP EXTI