First it was dairy, now producers of another vital foodstuff in Australia see their livelihoods under threat. 

While a decision by leading dairy players Murray Goulburn and Fonterra to slog suppliers with retrospective price cuts has caught the public's attention, producers of another key food commodity have also been put in a precarious position.

Australian vegetable industry body Ausveg has raised concerns about the fate of the country's potato growers, after Australia's leading supplier of the staple food item went into receivership in early May.

Ausveg described Oakville Produce as a "dominant force" in the Australian potato industry, supplying about three-quarters of all the potatoes sold in Woolworths supermarkets and having almost a quarter share of the country's entire fresh potato market.

The company entered voluntary administration on May 11, with some growers now reporting that they are owed hundreds of thousands of dollars.

“The rationalisation of the potato industry and its supply chain is increasingly requiring Australian growers, many of whom are operating farms that have been in their family for generations, to rely on large packhouses to stay in business,” said Ausveg spokesperson Jordan Brooke-Barnett.

“Unfortunately, this means that if these companies suffer financial misfortune, Australian growers can bear the brunt of the damage and are often the last in a long line of creditors to receive payment due to having less resources to pursue recourse when compared to larger companies.”

“We’d like to see more protections to ensure that our hard-working growers are fully compensated for any debts that exist in this sort of situation, and we’ve made representations to the ACCC asking for their support in ensuring that growers have their debts fully serviced.”

“We also want to see further scrutiny of potential buyers who are looking to take ownership of Oakville to ensure that they have a long-term plan for the ongoing success of the company, and that they understand the trading environment of the Australian potato industry and the dominant market forces at play.”

“We don’t want to see ongoing turmoil with continued turnover of these major players which can leave Australian growers out of pocket.”

Ausveg is the leading horticultural body representing Australia’s 9,000 vegetable and potato growers.

"Australian potato growers operate on tight margins and have to deal with extreme price pressure from their buyers," Brooke-Barnett said.

"The ongoing issues in the dairy industry offer the perfect example of what could happen if there isn’t an active effort to provide relief for our growers.

"We want to see a fair go for farmers from all links in the supply chain, including supermarkets and packhouses."

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