Australian McDonald's to Source United States Fries?

Australian potato growers believe McDonald's is planning to source frozen french fries from the United States.

After cutting Tasmanian potato contracts in half last month - in favor of cheaper contracts offered by McCains - the growers say McCains has cut the price it is offering by A$50 a ton (US$38 per 1.1 tons).

AusVeg Chairman Mike Badcock told the Australian Broadcasting Corporation the only country that could produce vegetables that cheaply is the United States.

"We do know that there is a surplus of production in America and Canada at the present time to the degree where growers have agreed to cut their production between 25 to 30 percent for this coming season because of the large stock that 's being held there," he said. "So it's probably quite possible in the short-term these potatoes coming in for McDonald's will be coming out of those surplus stocks."

McDonald's dismissed suggestions that it would sell french fries in Australia made from American potatoes. It insisted it would be sourcing potatoes from New Zealand and Australia.

McCain Food's policy is to not comment or talk to the media.