Executive officer of the Potato Growers Association of WA, Simon Moltoni, believes that some South West growers will leave the potato industry over deregulation. The State Government announced on April 15 that the Potato Marketing Corporation would be scrapped from June 30.
The decision comes with a sweetener for growers set to receive $14 million during the transition with $2 million of that to support industry development, which the State Government wants the industry to match.
Potato Growers Association of WA executive officer Simon Moltoni said he was disappointed with the State Government's lack of consultation with growers.
"The $2 million that the State Government has put up and asked the industry to match is from thin air," he said. "I don't think people would be willing to pay that while the industry is destabilised."
"I expect some people will look at other crops, some people will leave and others will suck it up and see," he said. "The problem for people leaving the industry is what they do with their potato harvester and equipment."
Potato Growers Association of WA Myalup zone chairwoman Mia Rose said the amount offered by the Government was too low.
"The findings of the ACIL Allen last year showed we needed a $24 million assistance package and I think it's disappointing the government haven't considered that," she said. "I don't think the growers will be able to match the $2 million offered by the government."
Mrs Rose said the one positive from the announcement was clarity about when the Potato Marketing Corporation would fold.
Mrs Rose believed the decision would mean some Myalup growers would expand while others would look at alternative industries.
"I think the bigger growers will become bigger while others will reduce their acreage or turn to other vegetables," Mrs Rose said.
Agriculture and Food Minister Dean Nalder said the association had confirmed to the State Government that most growers wanted deregulation brought forward and requested a suitable adjustment package to support producers through the change.
Source: au.news.yahoo.com
