Tasmanian farmers and multinational chip manufacture Simplot are yet to reach a price agreement for the upcoming potato season. (ABC News: Laurissa Smith)<\/p>\n
For another year, Tasmanian potato growers have reached an impasse with chip manufacturer Simplot.<\/p>\n
They are in dispute over a new contract that could make growers liable for future chip recalls, long after the potatoes have left the farm.<\/p>\n
Simplot has agreed to meet with the grower committee on Friday.<\/p>\n
A bitter stalemate between frozen chip manufacturer Simplot and its Tasmanian suppliers has once again escalated, just weeks out from planting early potatoes for French fries.<\/p>\n
Earlier this month, the US multinational pulled the pin on price talks for the upcoming season.<\/p>\n
Growers rejected Simplot's proposed price reduction, resulting in a 57 per cent drop in returns for their potatoes from two years ago.<\/p>\n
Tasmanian potato growers rejected Simplot's latest pay offer. (ABC News: Rose Grant)<\/p>\n
Potatoes are the most valuable agriculture sector in the state, but they're also the most expensive crop to grow, costing around $25,000 a hectare or 42 cents a kilo.<\/p>\n
The price Simplot wants to pay farmers this season is between 46 and 49 cents a kilo.<\/p>\n
Farmers aren't just concerned with the price, but with their treatment by Simplot.<\/p>\n
Tasmanian potato farmers have rejected a second pay offer from multinational processor Simplot that would see farmers paid less per kilo than last year.<\/p>\n
The company has cut potato volumes and cancelled a number of contracts.<\/p>\n
Then, in an unprecedented move, Simplot bypassed the grower committee that negotiates the contract on behalf of around 150 farmers.<\/p>\n
Instead, it approached individual growers to sign incomplete contracts before they viewed a new supply agreement outlining changes to terms and conditions.<\/p>\n