Thursday, June 3, 2010

AU: Potato growers fear factory closure

Tasmanian potato farmers who supply vegetable processor McCain say they are worried about the company's long term future in the state.

About 60 growers met in Ulverstone last night to discuss McCain's latest potato price offer, which they say is $45 less per tonne than last year.

The company is closing its frozen vegetable plant in Smithton later this year and the outgoing chairman of the McCain growers group Wally Elphinstone says there are concerns about the potato factory.

"If our dollar goes up, and the imports keep flooding in to Australia and the amount of tonnes McCains are processing, well, they may have to shut a plant in Australia," he said.

"If they shut the Tasmanian one, that will be a really big hole, that will really affect a lot of growers."

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