Pea growers frozen by imports
Growers in the Kindred region of Tasmania, where peas have been grown for freezing for over 50 years, now find themselves without a processor to supply over the coming year.
"These cutbacks by processors reflect the pressures being placed on the industry by issues such as the high Australian dollar and record levels of cheap imported product, and there is no doubt that there will be growers who are hurting in Kindred at the moment," said AUSVEG Spokesperson, Hugh Gurney.
"The real problem here does not lie with growers or with local processing operations - who grow and process vegetables extremely efficiently - but with the devastating king tide of cheap imports swamping Australia and drowning growers in the process," said Mr Gurney.
Simplot say that there has been a softening in demand for frozen peas, especially in the food service industry, which has been compounded by record levels of vegetable competition from overseas. This situation means that the company has excess stock of frozen peas remaining from last season, and as a result, will require less peas in the year ahead.
"The cost of labour for Australian growers and processors means they simply cannot compete currently with cheap imports, and if things do not change, the processed vegetable industry in Australia will struggle to survive."
"Figures released late last year indicated that the value of imported vegetables for 2011-12 was $908m, representing a 16 per cent increase on the year before and an increase of almost 50 per cent since 2004-05. The majority of these imports are frozen vegetables," said Mr Gurney.
Simplot will continue to source peas from the Longford area in Tasmania, where the company say they can be harvested more economically and efficiently than in Kindred.
"Action must be taken to prevent more Australian vegetable and potato growers from feeling the pinch of frozen imported product, and a great first step would be to overhaul the current Country of Origin Labelling laws in Australia, which are misleading and confusing, and prevent consumers from easily choosing where their food originates."
"Australian vegetables are of some of the highest standards of quality and safety on the planet, and people should be able to easily make that choice in the supermarket."
"The cutbacks experienced by pea growers in Kindred reflect the immense challenges facing food production in Australia, which has seen the closure of a number of food processors - including Australian icon Rosella - over the past 18 months," said Mr Gurney.
For more information:
Hugh Gurney
AUSVEG
Tel: +61 (03) 9822 0388
Mob: +61 0410 047 432
hugh.gurney@ausveg.com.au