Simplot Australia has picked up potato contracts worth A$2.5 million.
Tasmania’s TFGA vegetable council chairman Ian Young told reporters he had no details on Simplot’s new contracts and did not know if it had clawed markets back, or created new ones. Details of the contracts are being kept confidential while negotiations continue.
Young said Simplot representatives had recruiting farmers for the contracts.
"They're offering an extra 11,000 tonnes at A$230 a tonne,'' he said.
Simplot potato growers' group chairman Philip Richardson said contracts for 3,000 tonnes were picked up about a month ago and in the past week for a further 8,000 tonnes.
In May, Simplot lost a contract for A$10 million worth of potatoes after fast food chain McDonalds’ moved half of its French fry purchases were moved to McCain Australia which plans to source the potatoes from New Zealand.
"We're still down on last year's contracts but it has brought a level of confidence back into the industry,'' Richardson said.