Simplot spud growers in Australia may look for other crops.

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Simplot Australia

June 26, 2008
Simplot spud growers say they could be forced to opt out of growing the crop after price negotiations on new contracts hit a stalemate this week.

The farmers are seeking a record 33 per cent price rise due to skyrocketing fuel and fertiliser costs that have made spud crops unviable to grow.

They'd be better off planting cheaper crops such as carrots, poppies and onions.

If enough of them decided not to grow spuds it puts Simplot's supply needs in jeopardy and over time that's hundreds of Coastal jobs at stake at Simplot's Ulverstone and Devonport processing factories.

But after three months of frank price talks, Simplot growers feel they really don't have much room to budge.

Contracts for their last harvest were set at $270 a tonne and last year's cost of production came in at $263 a tonne (without land or water costs).

They need the 33 per cent increase to make it any where near worth the effort to grow spuds.

The final offer put forward by Simplot this week was $25 below that.

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