Govt bailout prevents demise of Chiko Roll

The NSW Government’s decision to support Simplot’s struggling vegetable processing plant in Bathurst has been welcomed by industry bodies. AUSVEG and NSW Farmers have voiced their support for the move, which they say is vital to the continuation of Australia’s fruit and vegetable industry.

The government will support Simplot with payroll tax rebates for three years through its NSW Regional Industries Investment Fund.

“We have been saying for years that manufacturing of Australian food is crucial if our agriculture industry is to survive and to ensure that consumers do not have to rely upon imported food,” said NSW Farmers horticulture spokesperson Peter Darley.

“This is a small first step but, more importantly, a good sign that our state government values local food manufacturing, growers and regional communities.”

AUSVEG has called on the federal and Tasmanian governments to take similar steps to assist the Simplot plant in Devonport, which the industry body says is “crucial” to the processed vegetable industry in Tasmania. According to AUSVEG, if the Devonport factory were to close it would impact the entire Australian industry.

Earlier this year, NSW Farmers and the Australian Manufacturing Workers Union (AMWU) called for urgent action from the government when Simplot announced that it may have to close the Bathurst vegetable processing facility.

The Bathurst plant employs around 195 staff and is reported to be the last remaining Australian-based large-scale vegetable grower and processor for the retail market. The iconic Chiko Roll is manufactured at the Bathurst plant.