McCain denies NZ move: Pressure mounts on Ballarat growers

McCAIN Foods in Ballarat has denied plans to shift its local plant to New Zealand within 18 months.But in a short written statement, Australia/New Zealand managing director Steve Yung has again put pressure on local growers.“The company is constantly evaluating the competitiveness of all plants in Victoria, Tasmania and South Australia and inputs such as potatoes,” Mr Yung said. “McCain has commenced benchmarking programs and will be looking for productivity improvements from potato growers in 2012 to remain globally competitive.”His comments came after the Victorian Farmers Federation questioned the competiveness of Australia’s food processing sector under a carbon tax and in the face of cheaper overseas food imports.President Andrew Broad said it was “a given” potatoes were more expensive to grow here than overseas, where farmers benefited from cheaper labour and smaller costs.“If we’re going to have secondary processing in Australia it’s high time Members of Parliament rethink the costs that sector is facing,” he said.Ten months ago farmers blockaded the McCain factory and convinced their South Australian counterparts to cut-off supply in a dispute over grower payments.Weeks of protest resulted in farmers accepting an offer already on the table – $273.50 per tonne, with $263.50 for the specialist McCain One brand.Ballarat-based Senator John Madigan questioned the timing of Mr Yung’s comments.“These sorts of comments always seem to come up right when the farmers are planting ... there’s always this implied threat,” he said.“What’s the game plan here? I guarantee if you pull up the newspaper clippings for the last 20 years you will see a pattern.”Grower representative Dominic Prendergast said he was unaware of reports McCain planned to leave Ballarat.