TFGA realistic about Simplot’s chances

The Tasmanian Farmers and Graziers Association (TFGA) have welcomed the encouraging announcement today that the Simplot vegetable processing plant at Devonport will remain open for at least another three years.

TFGA Vegetable Council Chairman Andrew Craigie said that growers see this is as a palatable outcome for all involved. Growers needed this announcement to be positive and now have a sense of relief that the factory is to remain open.

“However, the clear message from the company is that it is uncompetitive, it has to reduce costs dramatically if it is to survive long term. Its recent generous contracts with Coles and Woolworths are not its saviour,” TFGA chief executive Jan Davis said.

“We have always taken a realistic rather than optimistic approach to Simplot’s future in Tasmania. We are clear that their future is inextricably linked with that of our farmers,” she said.

“We want the company to achieve financial viability. The last thing our growers want is to lose Australia’s only surviving vegetable processing plant, the lone sentinel against cheap imports that are flooding into the country. Our growers will continue to work with Simplot to try to make it competitive. However, farmers cannot carry the cost of this – they have to be financially viable too, so they must be paid a fair return for their efforts,” Ms Davis said.
TFGA chief executive Jan Davis