Negotiations winding up on future of Simplot factories

Vegetable growers say they're frustrated there has been no assistance offered to Simplot by the Tasmanian Government.

Simplot Australia is entering the final phase of negotiations with stakeholders, as discussions over the future of two of its factories (Devonport in Tasmania and Bathurst in NSW) wind up.

But the Tasmanian Government has yet to make any firm commitments to the company.

Factory workers wash and sort carrots at Simplot food processing facility in Devonport

Tasmanian Farmers and Graziers Association vegetable council chair Andrew Craigie says he's frustrated by the lack of support.

"We're talking about a factory that is worth over $20 million per year at the farm gate," he said.

"If that was a new business coming to start up in Tasmania, I think there could be a slightly different amount of interest shown in it."

Tasmanian Minister for Agriculture Bryan Green says he's working with the company and with other government entities to deliver a positive outcome.

"(Simplot chief) Terry O'Brien and myself, as minister for primary industries together with economic development, are continuing to ensure the future of the operation there," he said.

Mr Craigie says growers have not met with or heard from the company in four weeks.

"Terry O'Brien has openly stated as we have, that our margins cannot be eroded any more, so we are sitting and waiting saying that 'OK, we're still ready to talk', but I guess the decisions just got to be announced now."

Meanwhile, Simplot potato growers last night rejected the company's proposed $20 per tonne price cut, instead accepting a $10 cut with conditions imposed.

Mr Craigie says the proposed conditions for this season focus on crops that grow over quota.

"The growers want some sort of commitment that over-quota will be taken at full price," he said.

"That it's written into the contract that there's a buffer if you like, that so much of their crop over contract is guaranteed to be taken."

Growers are also asking for easier terms on seed purchases next season.

An official announcement on the future of the Simplot factories in Bathurst and Devonport is expected later this month.

Source: ABC News, 10 October 2013