McCain Growers Accept Contract

McCain process growers in the Ballarat area of the Australian state of Victoria reluctantly accepted a price increase of A$3.75 a ton from McCain Foods.

With the harvest set to start later this month, the growers dropped their demand for a A$5 a ton increase and accepted the A$227.50 a ton offered by McCain Foods.

"We are going to fight for the rest of our initial price increase when the next negotiations begin," Ballarat McCain Foods growers group chairman David Myers said.

He said growers had accepted less than they needed because with the harvest starting in two weeks and next year's price negotiations due to begin soon, a decision had to be made.

He said a A$5 a ton increase was needed to cover higher production costs.

Myers said McCain had agreed that the next contracts would be for a minimum of two years. It has also agreed that next season's price talks would be finished by July.