Tasmanian potato growers will descend on Deloraine today, accusing multinational processor Simplot of slashing farm-gate prices while raking in huge profits and threatening to import cheaper spuds from overseas.
The rally comes as tensions boil over following negotiations for the 2026 harvest, which will see farmers cop a 6% price cut.
Combined with rising production costs, growers face a projected 39% drop in profits.
TasFarmers CEO Nathan Calman said the mood among farmers had shifted from concern to outright anger.
“Simplot is indifferent at a global level. They don’t seem to care,” he said.
“They want to drive down the price they pay for Tasmanian potatoes to match what they can source from India or China.”
The company reported a $76 million net profit from its Australian operations last year.
But new US-based management has refused to cover farmers’ rising costs, breaking with past practice.
Calman said growers were offered contract models that cut prices by up to 32%, even though it costs about $22,000 a hectare just to grow the crop.
“The more produce that comes from overseas, the more pressure is placed on local producers,” he said.
“That ultimately decreases the volume and price for Tasmanian growers [and] creates a threat to the nation’s food security.”
Frozen potato imports have quadrupled over seven years, reaching 188,339 tonnes in 2024 alone.
Most come from China and India, where labour and input costs are a fraction of Australia’s.
Indian company Hyfun Foods recently signed a major supply deal with Woolworths to distribute frozen chips and other potato products across Australia.
The price squeeze has left farmers frustrated as consumer costs continue to climb.
A large serve of fries at McDonald’s now costs $5, yet Tasmanian growers receive just 11 cents a kilo for the potatoes inside.
Calman said farmers were caught in an impossible position, heavily invested in equipment and land with no easy way to switch crops.
“Farmers might take a price cut and still grow potatoes, but then they can’t invest in new equipment or the servicing of tractors,” he said.
“That means the local mechanic loses work. No one buys new machinery.”
“Fast-forward five years and everyone’s tractors are clapped out, no one can afford to reinvest and the industry spirals downward until it collapses.”
He urged shoppers to choose local frozen potato products and called on retailers to back Australian growers.
TasFarmers expects up to 35 tractors to roll into Deloraine for the 1:30pm rally.
