Simplot Australia potato farmers in Tasmania accept price cut

Simplot processing potato farmers in Tasmania have accepted a $10 per tonne price cut for crops deliverable in 2014.

Tasmanian Farmers and Grazier's Vegetable Council Chairman Andrew Craigie says given the back drop of Simplot's review of their Devonport plant and the threat of cheaper imports, the negotiating climate was particularly tough.

"Very, very marginal price for all growers now.

A lot of people are loosing confidence because of the continual pressure on their margins", he said.

Andrew Craigie says some farmers have decided not to grow, while others will pick up tonnage.

"There will be others that will take up that for this season", he said.

"It's very much on a knife edge, whether it is a profitable business to be in considering the risks that we have to face to plant the crop".