GROWERS supplying factory processed potatoes feel like dairy farmers, with their commodity bought at prices well below the financial risk involved.
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Until Lamb Weston in Victoria recently moved their buying price up by $100/t, potatoes had been worth $300/t to $350/t, a level not viable according to family farmers.
The number of producers has shrunk dramatically in a few years with two growers left on the Dorrigo Plateau selling into their own market and no factory producers remaining at all.
At Crookwell 30 growers are now four, and yet the total acreage remains about the same.
"Factory rates wouldn't go up," former potato grower Neville Beaumont, Dorrigo said.
He and his next generation left the spud game because their pay was cheap as chips.
"The factories need to lift their price if they want to keep those farmers who are left in the game," he said.
Human labour availability at harvest is no longer a problem but paying off the mechanical equipment that has replaced people is a risk many no longer wish to bear.
Potato grower Shane Cole from Blighty in the Riverina has given away the opportunity to be kicked in the backside by price.
"Lots of growers have had enough and they are contemplating going out of business," he said.
"We're sick of the bull and mark-ups. The next generation of grower is either getting out or has already left."
Mr Cole qualified his comments saying the same issues plagued most of horticulture.
"Why do they buy pumpkins for 80c and sell them for $3.90? Why not question this? But I'm only a small fish in a big ocean," he said.
Before he tore up his contract Mr Cole was getting 1990 prices, when recent inflation was taken into account.
Potatoes are expensive getting them to harvest, and weather risk is a concern as is irrigation control.
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"There are a lot of uncertainties going forward," he said.
"The major supermarkets have pushed out the greengrocers. Little guys have no choice but to sell to the factories."
Crookwell Potato Association vice president Garry Kadwell said that as a seed potato grower he was buffered from poor factory prices by growers who were directly impacted.
"They're struggling," he said.
"Growers have had enough. They figure it's not worth continuing. I predict their loss will hit the industry hard."
Inputs and capital costs at extreme levels strip all incentive.
"How is a grower expected to pay for piece of machinery? And age is a factor. Farmers are getting to the point where they don't want that level of stress," he said.
"A price rise of $100/t is only catching up from five years ago, it's not going to put money in the pocket and it won't encourage people to keep going."
The cost of growing potatoes has tested the best of us. It's risky. The whole thing is risky. There's no bonus for taking on risk and not a lot of incentive to do it at all that's we've seen 30 growers go to four.
- Fred Bensley, Crookwell, NSW
As a heavy soil farmer Mr Kadwell said those potatoes grown in heavy mineralised soil were not getting the premium they deserved.
South Australia irrigated potatoes grown in sand were quicker to harvest and dominated the supermarkets because busy working parents didn't have to wash them.
"Prices have been too low for too long," he said.
Fred Bensley, another seed grower from Crookwell, said the 300/t offered to factory growers meant farmers couldn't produce a profit after overheads like irrigation.
"The processor wants more for less," he said.
"They use specifications as a tool, or a weapon to crucify growers.
"The cost of growing potatoes has tested the best of us. It's risky. The whole thing is risky. There's no bonus for taking on risk and not a lot of incentive to do it at all that's we've seen 30 growers go to four."
Mr Bensley said Victorian suppliers were going the same way.
"Growing spuds is not as simple as people think."
New data from Rabobank echoes these farmers' concerns by predicting a 17pc rise in vegetables by Christmas.
Rabobank senior food retail analyst Michael Harvey said the rise in prices had been "largely expected" - driven by high input costs for food production as well as the impact of wet weather damage on agricultural production.
He cautioned there was further "upside" in food prices likely to come.
"Further rises are expected in food prices in quarter four and into 2023 as the impact of current and recent flooding in agricultural regions weighs on food supply volumes," he said.
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