20 November 2009
For immediate release
AUSVEG dismay at Smithton vegetable processing plant closure
AUSVEG Chief Executive Officer Richard Mulcahy today extended his deep sympathy
to the 115 workers and their families who will be made redundant as a result of
McCains decision to close its vegetable processing plant at Smithton next year.
McCains decision to close their vegetable processing plant will have massive
repercussions for the whole supply chain to the Smithton plant. Industry sources
suspect the flow on impact could affect three to four times the 115 people who will be
made redundant by this decision, he said.
AUSVEG is the national peak industry body representing the interests of Australian
vegetable and potato growers.
Australian growers and their families continue to get the raw end of the deal. They
are being squeezed to the brink of collapse by the flood of imported products, he
said.
McCain Foods announced today that it will close its vegetable processing plant at
Smithton in Tasmania's north-west in November 2010.
Australian companies are increasingly going to try and import products from overseas
due to the strong value of the Australian dollar. Growers are already hurting from
rising input costs, he said.
Australian processing companies are continuing to move towards packaging rather
than growing produce. This is a major food security concern for Australians. If this
process continues Australian consumers will eventually be unable to buy Australian
grown produce in supermarkets.
The industry has seen this coming for years, yet there is no evidence of government
intervention. Hopefully this plant closure will be a wakeup call.
As the peak industry body for the vegetable industry representing the interests of
Australian growers, AUSVEG was not consulted in relation to this plant closure, he
said.
ENDS
MEDIA CONTACT: Hugh Tobin, Communications Manager, AUSVEG
Phone: (03) 9544 8098, Mobile: 0431 939 920, Email: hugh.tobin@ausveg.com.au
Media Release