Simplot has returned to collective negotiations with Tasmanian potato growers following a breakdown in talks over contracts for the 2026/27 season.

TasFarmers confirmed on August 27 that the US-based processor was again negotiating with growers collectively, marking a change from its earlier decision to end discussions with the TasFarmers Simplot Potato Committee and approach individual suppliers.

“We continue to support our potato growers in their negotiations with giant American processor Simplot, which recently left the negotiating table to single out growers in negotiations,” TasFarmers said in its latest update.

“After much discussion and media attention, they have now returned to the table, with negotiations focused on consulting with growers collectively.”

The development follows several weeks of tension between Simplot and its Tasmanian suppliers.

On August 13, TasFarmers said Simplot had terminated discussions with grower representatives and was asking individual farmers to accept commercial terms for the new season before the complete proposed 2026/27 Grower Agreement had been provided.

The farming organisation called for the full agreement to be made available to grower representatives so they could review its provisions and obtain advice before farmers were required to accept the commercial terms.

TasFarmers also said potato prices had been reduced during the previous two seasons and estimated that grower margins had fallen by more than 60%.

The return to collective negotiations addresses one of the central procedural concerns raised by growers, although there has so far been no announcement from TasFarmers that a final agreement on prices or contract terms has been reached.

The negotiations have wider significance for Tasmania’s processing potato sector. Simplot says its Ulverstone plant processes around 300,000 tonnes of potatoes supplied by 165 Tasmanian growers each year and employs more than 450 people. The plant produces coated, uncoated and other value-added potato products.

The latest talks therefore leave the 2026/27 supply arrangements still to be settled, but with growers and the processor once again negotiating collectively.

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