Spud farmers get skinned

BALLARAT district potato growers have rejected a price offer from McCain Foods to buy this season's crop.The McCain Growers Group met with the food processor this week and voted against its offer.Growers believed it did not compensate for their rising farm costs. With the dry season, Ballarat growers have been facing severe production costs in double-pumping water in the area, and they say it has become much harder for them this season compared to growers in other regions.While McCain buys most of the region's potatoes, escalating fertiliser and fuel costs mean growers want to see an increase per tonne in price to reflect those factors.Tasmanian food processor JR Simplot, also known as Birds Eye and Edgell, is among McCain's competitors offering growers much higher prices per tonne.McCain Growers Group chairman David Myers said Simplot was signing contracts at $85 per tonne.With planting to begin in November, a Tourello farmer said Ballarat growers believed McCain wanted to buy this season's potatoes at a discounted price.He said growers would continue to negotiate with the food processor, but believed it would take "some time" to resolve the issue."The seasonal conditions look as though they're going to be difficult; with the current lack of rain this spring, it's not helping us and other farmers in the region."Last year, McCain faced a production shortfall of 40 per cent, with a lack of potato supply from the Ballarat district.Negotiations will continue this week.McCain Foods has a policy of not speaking to the media.