Potato growers Simplot Tasmania reluctantly accept price rise

Prices for potato crops grown for Simplot's north-west Tasmanian factory are set to rise by AU$20 a tonne.

Last night, farmers voted to accept a 7 per cent rise on the current price.

Even so, growers say they've been reluctant to accept the collective bargaining deal.

After detailed discussion, Ledgerwood farmer John Williams put the motion to the Deloraine growers meeting, and about 70 growers raised their hands.

"I believe we should reluctantly accept the AU$20," he said.

"I don't believe it's enough.

"Our input costs are going up all of the time, and if we don't get a decent return, our rural communities suffer.

Before the vote, growers spoke out about rising electricity costs, in addition to costly seed and fertiliser inputs.

They said potato prices had been too low to cover machinery replacement costs.

And several growers said demands for increasing yields had taken a toll on the quality of potatoes, with much higher levels of wastage from soft rot and poor storage.

The meeting heard that Simplot is setting up a new productivity group with growers to look at having the industry continue on a sustainable basis.

Chairman of the Tasmanian Farmers and Graziers Association Simplot potato growers committee, Trevor Hall, says Simplot is also looking to contract more processing potato crops this year.

The Scottsdale farmer says Simplot will be seeking 275,000 tonnes of potatoes for 2015, compared to expected deliveries of 250,000 tonnes this year.