Excluding supermarket private labels, the Australian frozen food processing market is shared predominantly between Simplot and McCain. The Simplot-Coles private-label deal is forcing McCain to cut costs for its contract-growers. In addition, the high Australian dollar has impacted on McCain exports.
From late May 2012, McCain has reportedly told at least seven of the 33 potato growers supplying its largest frozen chip factory, in Ballarat, that their contracts will not be renewed. A number of farmers in Victoria and Tasmania have had their annual contracts cut by up to 60%.
McCain, which sets the price for local businesses in Victoria buying chip potatoes, has also been offering lower prices to growers. Prices have reportedly dropped from $305 a tonne to $270. As Australian Food Newsreported last month, a motion has been tabled in Victorian Parliament to urge McCain’s to keep collective bargaining in place for potato growers.
