Tasmanian potato growers are locked in a fight with the US-owned food processing giant Simplot.VANGUARD - Expressing the viewpoint of the Communist Party of Australia (Marxist-Leninist)
For National Independence and Socialism • www.cpaml.org
Tasmanian potato growers are locked in a fight with the US-owned food processing giant Simplot.
They are involved in negotiating a new contract for next year’s crop. In August, farmers rejected Simplot’s offer of a 6 cents per kilo cut on last year’s price. Recently the company came back with an offer of a 4 cent reduction. Growers have rejected this offer as well. They are seeking an increase of at least 2 cents per kilo to try to stay ahead of price increases in diesel fuel, fertiliser and other inputs.
Farmers argue that Simplot’s offer would cost them hundreds of thousands of dollars, and force many out of the industry. It costs $22,000 in inputs to grow one hectare of potatoes. Recently farmers staged a protest at Deloraine in northern Tasmania, where 130 farmers in 58 tractors, trucks and other machinery arrived in a convoy to highlight their struggle.
The Tasmanian potato industry is worth $463 million, with $431 million of this for potato chips, hash browns and other potato products. These are processed at one of Simplot’s Tasmanian factories in Ulverstone, which employs over 450 people.
The Australian Manufacturing Workers Union, which covers many of the workers in Simplot’s factories, is supporting the farmers in their struggle. They recognise that the livelihood of their members is also at stake if farmers are forced out of business.
Simplot is perfectly capable of paying a fair price to farmers for their produce. Privately-owned US company Simplot ranks 54 th in the list of private companies, with revenue of US $7.6 billion. In Australia, Simplot has 5 factories in NSW, Victoria and Tasmania. Last year Simplot made a profit of $7.6 million from sales of frozen vegetables and other products sold under many well-known brands including Bird’s Eye, Edgell, Chicken Tonight, Chiko Rolls, John West, Leggo’s, I&J, Harvest and Sea Kist.
In 2024 the Australia-wide company generated total revenue of $1,750,270,000 including sales and other revenue. Like most US and other multinationals operating here, it can use any number of legislative loopholes to turn $1.75 billion in revenue to a measly $7.6 million in profits in order to minimise its taxation payments.
Simplot is blaming competition from imported potatoes coming into Australia from India, China and other countries for their attempt to reduce their payments to farmers. Last year over 100,000 tonnes of potatoes were imported from India and China. These are being used in supermarket house-branded products.
We wish the Tasmanian potato growers and workers victory in their struggle with this US-owned multinational.