Dominant frozen chip manufacturer McCain Foods has been accused by the Victorian Farmers Federation of using "bully-boy tactics"to push potato growers in Victoria and Tasmania to the financial brink.
Farmers' president Peter Tuohey claimed the Canadian-owned global company had deliberately adopted a "divide-and-rule"approach in supply negotiations, and had an aggressive attitude.
But McCain Australia vice-president Graham Harvey said the real problem was that Australian growers produced the most expensive potatoes in the world.