GROWERS SPIT CHIPS

FEARS OVER EUROPEAN POTATO GLUT

THERE are growing concerns that a flood of frozen potato products from Europe could wipe out the Tasmanian industry.

Potato growers are calling for urgent action to stop the feared mass importation because of a 2.6 million tonne glut. Tasmania is the country’s biggest producer of processing potatoes, supplying about 75 per cent of the crop — with a farmgate value of $123 million a year — and would be the hardest hit if the imports are allowed.

Each year Australian potato growers produce about 75 per cent of the frozen potato products consumed here.

TASMANIAN potato growers are calling for urgent action to stop the potential mass importation of frozen potato products which could devastate the state’s most valuable vegetable industry.

There are fears a huge glut of 2.6 million tonnes of processed potato products in Europe could see cheap products flood on to the Australian market.

Tasmania is the country’s biggest producer of processing potatoes, supplying about 75 per cent of the crop — with a farmgate value of $123 million a year — and would be the hardest hit if the imports are allowed.

The current oversupply in Europe has been caused by the COVID-19 shutdown of restaurants and food service providers.

Each year, Australian potato growers produce about 75 per cent of the frozen potato products consumed here, with the other 25 per cent imported.

Australia's annual crop is about 1.4 million tonnes.

Two of the country’s three major potato processing factories are located in Tasmania.

Tasmanian Farmers and Graziers Association vegetable council chairman Nathan Richardson said with such a huge stockpile in Europe, there was a danger that the cheap imports could continue to be sent to Australia for a number of years, which would devastate the local industry.

“It’s a real threat,” he said. “We already import french fries into Australia, so those channels are there, so it would be easy for wholesalers and the supermarkets to just bring in more of the cheaper products.”

Mr Richardson said the impact would also be felt in the state’s North-West communities, where the McCains and Simplot processing factories employed hundreds of locals at Smithton and Ulverstone.

National industry body AUSVEG has written to several Cabinet Ministers and a broad group of elected officials, urging the Australian Government to urgently enact shortterm measures to limit the importation of heavily discounted frozen potato chips from the EU.

McCain processing potato grower committee chairman Beau Gooch said Tasmanian growers were already facing significant challenges this season after a very wet start to harvest, which could cause some significant crop losses.

He said it was vital that all levels of government acted quickly to protect the industry from a possible flood of imports: “Both McCains and Simplot have flagged this, and I can’t remember a time when the two processors down here have been so concerned about an issue,” he said.

Mr Gooch said the potato industry was a huge employer in the state and contributed millions to the economy.

Primary Industries Minister Guy Barnett said the government was monitoring the situation: “While import trade policy is largely a federal matter, the Tasmanian Government has been in contact with our federal counterparts on this issue,’’ Mr Barnett said.