Huge Potato Profits For Australian Supermarkets

Published online: May 06, 2005
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Australia's two biggest supermarkets are reported making profits of up to 1,000 percent on their potato sales.

The Victoria-based Weekly Times rural newspaper said the Coles and Woolworths supermarkets are buying potatoes from farmers for A$100 to A$140 (About US$78 to US$109) a tonne (2,205 lbs).

"After washing and packing the price rises from $140 to $220 (About US$109 to US$172) a tonne," it said.

"They are sold in supermarkets for the equivalent of A$1,500 A$2,000 (About US$1,171 to US$1,561) a tonne.

The newspaper said the two supermarkets - who dominate sales nationally - have contracts with farm producers locking them into fixed payments but the chains can "change any specification or requirement."

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