Most Tasmanian potato growers supplying Simplot have signed contracts for the coming season following weeks of disagreement over proposed grower prices.

TasFarmers Chief Operating Officer Neil Grose told Tasmanian Country that the agreements resulted in an average price reduction of about 2.5% for growers.

The contracts follow a prolonged dispute between Simplot and its Tasmanian potato suppliers over pricing and the negotiation process. Growers had previously sought to negotiate collectively through an Australian Competition and Consumer Commission-authorised bargaining group.

The dispute intensified in August after TasFarmers accused Simplot of ending discussions with grower representatives and approaching individual suppliers with contracts offering lower prices.

The issue also reached Australia’s federal parliament. Speaking in the Senate on September 16, Tasmanian Senator Richard Colbeck referred to a proposed 2.5% reduction and criticised the way negotiations with growers had been handled.

According to Grose, most suppliers ultimately signed their contracts shortly before Simplot’s September 15 deadline. At least one substantial grower chose not to sign and will no longer produce potatoes for the processor under the new agreement.

The outcome brings greater clarity to Simplot’s raw potato supply in Tasmania ahead of the coming production season, although the negotiations have highlighted continued pressure on potato grower margins.

Simplot operates a major potato processing business in Tasmania, supplying frozen potato products to the Australian market.

The latest agreements follow similar negotiations in previous seasons between processors and Tasmanian potato growers over production costs and contract prices.