Tasmanian potato growers have struck a new price deal with Simplot after months of tense negotiations that came to a head with a tractor rally earlier this month.
The agreement was reached during direct talks between the TasFarmers Growers Committee and Simplot’s US management team in Boise, Idaho.
While the deal includes a cut to the base price, growers will be able to recover the loss through additional productivity incentives.
“This new offer is a significant result for growers,” TasFarmers Growers Committee chair Leigh Elphinstone said.
“Given the difficult circumstances we have been in, the Committee sees this as a terrific outcome.
TasFarmers CEO Nathan Calman said the agreement stopped the deeper cuts initially pushed by Simplot’s overseas managers.
For the 2026 season, Simplot had proposed a 6% price cut, which growers unanimously rejected in August at a meeting in Deloraine.
“While this doesn’t see the rise in the gross margin that reflects the increase in growers’ costs, it does reverse the massive cut that Simplot’s USA managers were looking for,” he said.
“This also shows the importance of growers working together through TasFarmers to get the best possible outcome.”
“Last week’s tractor rally and strong demonstration from growers certainly had a massive impact.”
“We would not have got to this point without that action.”
With the price issue settled, the organisation is now turning its attention to what it sees as a bigger challenge: cheap frozen vegetable imports.
“While we have settled the price for processing potatoes for this season, the long-term battle still remains that overseas cheap imports of poor quality are undermining local growers,” Calman said.
He questioned why supermarkets back local fresh produce but continue to stock imported frozen vegetables.
“There is no reason to import any frozen vegetables from overseas. We produce more than enough vegetables for Australian consumers at a price and quality that everyone can enjoy,” he said.
Elphinstone said growers were relieved to move on.
“Given the difficult circumstances we have been in, the committee sees this as a terrific outcome,” he said.
“Growers can now get on with farming instead of negotiating.”
