Simplot and its potato growers continue to collaborate and a new pricing agreement reflects an understanding of the issues currently being faced by the industry. The new agreement utilizes the agreed cost model and comprises a $9 increase per ton of potatoes and an additional $4.50 fertiliser subsidy per ton for this season.
The Tasmanian Farmers and Graziers Association (TFGA) Simplot Potato Committee have worked closely with Simplot over the past few months to undertake these negotiations.
Dane Smith, Simplot Australia's Executive Director Supply Chain, acknowledges that the industry has had to deal with significant complexity and volatility due to COVID-19 and manage escalating costs, particularly those related to the fertiliser market. "Skyrocketing fertiliser costs combined with other pressures are impacting growers. As a business, we recognise the need to work with and support our Aussie growers. From end to end, the industry must remain strong so that it is here for generations to come. To make this a reality, we must continue to work in partnership to ensure locally grown potatoes remain competitive on a global scale while also remaining a compelling farming option for our growers."
Under the new agreement, Simplot will continue to partner with growers to find new ways to enhance yield and identify mutually beneficial improvements throughout the value chain. Each year Simplot sources more than 300,000 tons of potatoes from Tasmanian growers.