Contract negotiations with Simplot continue after almost 100 potato growers from around the state unanimously rejected the processor’s proposed pay increase at a meeting in Deloraine on Thursday.
Simplot offered growers a three year contract, with an extra two cents a kilo in the first year, one cent in the second and one cent in the third.
Chairman of Simplot Potato Growers committee and local farmer Trevor Hall said growers were, “understandably not impressed.”
“The offer was rejected unanimously by the committee. We only wanted a two year
contract and the price was also rejected,” he said.
“Growers want four cents a kilo extra in the first year at least and a substantial increase in the second year.
“Simplot also wanted to implement some changes to the size scheme in the contract and the growers want to clarify what the impact of that would be on their crop.”
Legerwood harvesting contractor and farmer Mark McDougall said the offer Simplot put on the table was not viable for growers, who have increasing labour and fertiliser costs.
“It’s well documented that it costs us $16,000 a hectare to grow a crop of potatoes. If you’re growing 56 tonne to the hectare which is probably the district average, that’s only a return of $17,800 a hectare,” Mr McDougall said.
“So you get $1,800 a hectare for all your effort and all your risk.
“We’re just not making anything out of it, simple as that. We just want a decent return for what we’re outlaying.”
Simplot’s previous payable weight range was between 250 grams and 850 grams, and they have proposed to reduce the maximum weight to 650 grams.
Mr McDougall said the proposed changes to the size scheme could be damaging
to growers.
“We grow a few Ranger Russets and you’re really chasing that size bonus to get a decent rate per tonne,” he said.
“We used to get a bonus up to 850 grams, but if they reduce that we’ll get less bonus.”
He said if Simplot don’t put a higher pay offer on the table, some growers will
drop off.
“Because wool and cattle are so good, and nearly all the blokes I dig for have no investment in gear, they could just grow more cattle, more sheep, milk more cows,”
he said.
“I know dairy farmers are already talking about cutting back growing spuds for the processors because there’s not enough in it.
“If we don’t get an increase, people will drop off. Simple as that.”
A spokesperson for Simplot Australia said they are currently in negotiations and working with growers to reach a ‘sustainable and equitable outcome’.
Mr Hall said there will be another meeting in several weeks, hopefully with an increased offer.
This article was first published in the North-Eastern Advertiser on July 10, 2019.
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