McCain urged to fund freight of Penola Potato growers

South Australian Potato producers have called for fair freight arrangements following the closure of McCain Foods' Penola plant.

Growers said they hoped the food processor would not expect them to pay the freight costs from South Australia to Ballarat headquarters now the Penola plant had closed.

South Australian Liberal Senator Anne Ruston said if potato producers in southeast South Australia were to survive, a fair compromise on freight arrangements with McCain's could make the difference.

"With the closure of McCain's facility at Penola before the end of the year, all locally produced potatoes will have to be transported to Ballarat,"Senator Ruston said.

"I hope McCain's will consider how this could impact on local growers' bottom lines.

"Local producers are already on very tight margins and with this year's season under way, growers contracted to McCain's could find themselves losing money unless the company bears some of the additional freight cost resulting from its closure of the facility at Penola."