Aargh! McCain you've done it again - buying NZ spuds

SYDNEY: Multinational food company McCain's Australian arm plans to buy more of its potatoes from New Zealand, further infuriating Victorian farmers.

McCain told farmers yesterday it would cut its Australian potato contracts and reduce the price it paid for Australian potatoes.

It also told Victorian farmers that the New Zealand industry was more competitive.

McCain growers' group chairman David Myers said the price cuts would be discussed further at a meeting with the company next week.

He said the decision was extremely disappointing. "There'll be some serious negotiations with the company. We will achieve to get the best outcome we can for the growers, but there certainly are major concerns within our industry."

Myers said there were several reasons why the New Zealand industry was more competitive. "Labour costs are less in New Zealand than what they are in Australia and they do have economy of scale across there that perhaps we haven't got here ... We know we have to be competitive at the end of the day."

McCain has refused to comment publicly on the issue.

Victorian potato farmer Ian Thomas was one of 150 people to attend the meeting with McCain executives and said the company's importation of New Zealand potatoes kept increasing. "It'll mean a difference to us."

Last year, 20,000 tonnes of potatoes were imported from New Zealand and 32,600 tonnes had arrived this year.

Tasmanian vegetable farmers are leading a series of protests on the mainland to demand better country-of-origin labelling and more corporate loyalty to Australian growers.

The protests were spurred by a decision by McDonald's to cut its purchases of Tasmanian potatoes for french fries by half - with the contracted supplier, McCain, substituting potatoes from New Zealand.

A tractor protest which started in Victoria last month is due to arrive in Sydney next week.

- NZPA