A compromise agreement on the future of the Western Australian potato industry has been reached following the intervention of Agriculture Minister Ernie Bridge.
The compromise, hammered out during two days of intensive negotiations this week, will see Edgell-Birdseye proceed with its multi-million dollar expansion plans at Manjimup while also allowing the Potato Marketing Authority (PMA) to continue its operations.
The new arrangement removes the threat of job losses at the PMA and the Edgell-Birdseye processing plant at Manjimup, while also ensuring new export opportunities are pursued.
Mr Bridge said growers would have an opportunity to dramatically expand their operations to meet Edgell-Birdseye's requirement for more potatoes.
"Edgell-Birdseye currently buys about 20,000 tonnes of potatoes for domestic requirements, but wants to more than double that capacity over the next few years to allow it to tap into export markets," the Minister said.
"The expansion program looks to an anticipated 5,000 additional tonnes of potatoes in 1993 for export purposes, rising to 15,000 tonnes in 1994, and eventually reaching 25,000 tonnes.
"This presents a tremendous opportunity for local growers, as well as being good news for the WA economy generally."
In return for its multi-million dollar investment in WA, Edgell-Birdseye would get a $50/tonne rebate for potatoes used for export purposes. The rebate would be paid by the PMA, using pool return funds from growers. Independent surveillance would ensure the cost was not passed on to WA consumers.
The $50 rebate would continue for three years before being phased down to $30/tonne in the fourth year, and $20/tonne in the fifth year, with no rebate after that date.
The proposal would also see Edgell-Birdseye invest a further $500,000 over the next 12-18 months to fund a range of initiatives to improve production and processing techniques.
The Potato Marketing Authority would be retained to oversee the orderly marketing of WA potatoes, with a sunset clause at the end of five years.
Edgell-Birdseye would provide a guaranteed price for all potatoes received by the company in the first three years.
Mr Bridge said the arrangement had still to be fine-tuned with details currently being worked through, but the compromise had been given in-principle support by the Potato Growers' Association, PMA and Edgell-Birdseye.
He said staff from his office put the proposal to a meeting of potato growers in Manjimup last night.
While the compromise had been reached after negotiations with Edgell-Birdseye, Mr Bridge said other WA potato exporters would have the opportunity to participate in the rebate scheme.
