Tasmanian vegie growers to collectively bargain with processors

Tasmanian vegetable growers could gain permission to collectively bargain with vegetable processors Simplot and McCain if a draft determination issued by the ACCC goes ahead. The draft proposes to authorise vegetable grower members of the Tasmanian Farmers and Graziers Association (TFGA) to collectively bargain with current and future vegetable processors in Tasmania.

The TFGA has been authorised to collectively bargain with Simplot and McCain since 2004, but the current draft determination proposes to grant authorisation for a further 10 years.

Participation in the collective bargaining will be voluntary for both growers and processors. While Tasmania accounts for 30% of Australian-produced processed vegetables, most Tasmanian vegetable farms are very small, with nearly 50% producing less than $50,000 worth of produce each year.

“Collective bargaining is likely to deliver transaction cost savings for growers and processors and improve growers’ input into contractual arrangements,” ACCC Deputy Chair Dr Michael Schaper said.

The ACCC is calling for submissions on its draft determination before it makes a final decision. More information about the application and granting of interim authorisation is available from www.accc.gov.au/AuthorisationsRegister.