TasFarmers, Media Release, 2 October 2025
Tasmanian potato growers are turning the spotlight on multinational food giants as anger builds over price cuts being forced on farmers and the dumping of foreign produce into the Australian market.
Farmers are set to rally today in Deloraine to draw the public’s attention and that of the broader commercial community to the way food processors, supermarkets, and fast-food chains are impacting Tasmania’s farming industry.
TasFarmers CEO Nathan Calman said recent negotiations with Simplot over the price of this year’s potato harvest had left farmers deeply disappointed. The mood, he said, has shifted from concern to outright anger, as Simplot pushes price cuts while production costs continue to soar.
“Simplot is indifferent at a global level. They don’t seem to care. They want to drive down the price they pay for Tasmanian potatoes to match what they can source from India or China,” Mr Calman said.
“They are seeking to decrease the per-tonne payment to farmers at the very moment production costs in Australia are skyrocketing.
Mr Calman said that under the previous gross margin model, farmers had certainty and were paid fairly. But during recent negotiations, growers were offered cuts of up to 32%.
“The more produce that comes from overseas, the more pressure is placed on local producers. That ultimately decreases the volume and price for Tasmanian growers, a creates a threat to the nation’s food security,” Mr Calman said.
In 2024, more than 218,000 tonnes of frozen cooked potatoes were imported into Australia, a 25 per cent increase on 2023 levels, but with only a 3 per cent increase in total value. The result is a flood of cheap, overseas products of unknown quality entering the market, with no apparent reduction in shelf prices for consumers.
The frustration among farmers and consumers alike is growing as more imported potatoes arrive by stealth. While the retail price of fries continues to climb, with a large serve at McDonald’s now $5, Tasmanian farmers receive just 11 cents for the potatoes that go into them. Farmers are pressured to grow less and sell for less, while consumers pay more.
These pressures have reached a breaking point. Farmers are gathering today to highlight the crisis and express their anger.
“This isn’t just a Tasmanian problem,” Mr Calman said. “Farmers across the world – in the UK, the US, and Europe – are under the same pressure. But if we want a safe, secure, and sustainable food supply in Australia, we cannot allow the viability of our agriculture to be threatened by cheap imports brought in simply to boost corporate profits.”
“I would urge consumers to choose local when purchasing frozen potato products, and show their support for our farmers.”
For farmers, the rally is both symbolic and practical. Driving their tractors into Deloraine is a way of showing the public the financial pressures they face; from the cost of equipment, to employing workers, to contributing to rural communities.
Mr Calman said “Farmers might take a price cut and still grow potatoes, but then they can’t invest in new equipment or the servicing of tractors and equipment. That means the local mechanic loses work. No one buys new machinery. Fast-forward five years and everyone’s tractors are clapped out, no one can afford to reinvest, and the industry spirals downward, until it collapses.”