Eastern Shore potato growers are among those across Tasmania facing significant uncertainty as a contract dispute with multinational food processor Simplot reaches “crunch time” this week. Growers are reportedly “spitting chips” over new contract offers, which they claim would drastically cut their returns.
The ABC reported today that Tasmanian potato growers are locked in a tense standoff with Simplot over proposed new supply agreements for the upcoming season. This follows a meeting yesterday in Deloraine where nearly 80 percent of the state’s potato growers unanimously rejected individual, incomplete contracts offered by Simplot.
TasFarmers Chief Operating Officer Neil Grose stated that growers are united in their “fury” over what they describe as a hastily presented two-page letter, delivered to some growers in recent days. This letter asked farmers to accept volumes and varying, but substantial, cuts to the price per hectare for four potato varieties, without fully outlining the changed commercial arrangements.
According to TasFarmers, the proposed contracts would result in a 57 percent reduction in return for growers compared to two years ago. The ABC also highlighted that farmers are facing a 6% price cut for the 2026 harvest, which TasFarmers warns could slash profits by nearly 40% amidst soaring input costs. Growers like Trevor Hall of Scottsdale, Stuart Appleby of Gawler, and Ricky Elias of Bishopsbourne are among those impacted by the dispute.
Growers are particularly concerned by Simplot’s decision to terminate negotiations with the TasFarmers Simplot Potato Committee via email, opting instead to deal with individual farmers. TasFarmers has accused Simplot of using “bullying tactics” to coerce growers into signing contracts, with Mr. Grose noting that farmers feel pressured by Simplot’s “sheer financial might”. Some farmers have been given a deadline of August 21 to sign the contracts, with the threat that they will expire by September 1, potentially leaving them without a buyer.
Simplot, however, has rejected claims of bullying, stating it values its Tasmanian potato growers and is engaged in fair negotiations. A company spokesperson told the ABC that commercial arrangements consider a range of factors, including market conditions, production requirements, input costs, and operational considerations, aiming for a sustainable and competitive future for the industry.
In response to the impasse, growers have unanimously demanded that Simplot meet with their negotiating committee within four days from Tuesday, August 18, 2026, to clarify the terms and conditions of the Potato Supply Agreement (2026-2027). The Potato Committee has also engaged global lawyers and made enquiries to the Australian Competition and Consumer Commission (ACCC).
This ongoing dispute marks a continuation of a tense relationship between growers and Simplot over recent years, including stalled negotiations and a tractor rally last year.
For more details on this developing story, readers are encouraged to visit the original report on ABC News Tasmania.