Australian Grocers Refuse To Comment

A potato glut has forced Australian potato prices down to below the cost of production and growers said inflated retail prices at supermarkets were discouraging demand.

Woolworths and Coles, two major supermarket chains, are selling loose, brushed potatoes for A$1.95 a kilogram ($.70 U.S. cents a pound).

Growers say the inflated retail prices at supermarkets were discouraging demand.

It is costing growers 30 cents a kilogram (10.77 U.S. cents a pound) to produce the potatoes.

Higher than normal volumes in Victoria and South Australia caused a flood of supply on the potato market. This has been worsened by growers releasing crops they had previously held back in the hope of better prices as well as supplies of new potatoes from Queensland.