Woolworths mirrors Coles' commitment to Australian veg

Woolworths has announced it will reduce frozen vegetable imports by sourcing all its Select brand frozen vegetables from Australian growers. The retail giant has committed $16.5 million to Simplot and will stop importing frozen vegetables from China, Europe and New Zealand by May 2014.

Woolworths already sources more than 17,700 tonnes of branded and own-brand frozen vegetables from Simplot. The new deal will see an additional 5100 tonnes of peas, onions, carrots, corn, green beans, broccoli, cauliflower and Brussels sprouts produced at Simplot’s Devonport plant, with some volume also going to Simplot’s Bathurst plant.

To meet the demand, an additional 650 hectares of vegetables will need to be planted, Simplot says, with about 155 Australian growers benefiting directly from the deal, as well as additional flow-on effects for the local community.

Woolworths has said it will absorb the cost of the decision, with prices for its Select range of frozen vegetables remaining stable even after the Australian-grown vegetables hit the shelves.

“This commitment by Woolworths to Australian-grown and -produced frozen vegetables is positive news for the Australian vegetable processing industry and our farmers who rely on it,” said Terry O’Brien, managing director of Simplot Australia.

“The deal with Woolworths is greatly appreciated and great news for the industry, but we still need to supply products at competitive prices. We sincerely appreciate Woolworths’ confidence in backing our business and that of our growers.”

“This is vital assistance for Simplot’s Tasmanian growers, as the processing company earlier this year announced that it may be forced to close its Devonport plant within a number of years if its bottom line didn’t improve,” said AUSVEG spokesperson Hugh Gurney.

Coles made a similar commitment in September, signing a long-term local sourcing contract with Simplot that will see 100% of the vegetables for its Smart Buy frozen vegetables line from Australia by early 2014.

“While it is encouraging to see that more Australian vegetables will be sourced by Woolworths, it is important that this is done sustainably and that retailers will continue to support Australian vegetable growing so that growers are viable in the long term,” Gurney said.

“We would urge both retailers to continue this positive trend and expand their Australian sourcing to other lines and commodities.”