A Deloraine farmer who grew spuds for years but now concentrates on hemp is urging others to do the same as price pressures mount from potato processors.
Recent difficulties negotiating potato prices with global frozen chip companies Simplot and McCain already has some farmers questioning their choice to continue growing the high-input crop.
Hemp industry advocate and owner of The Tassie Hemp Co. Tim Schmidt said that demand for hemp is growing and while a gross margin of around $2500/ha is not the highest of returns compared to around $5000 for potatoes – being a short, low-risk, low-input crop that improves paddock condition adds good value to a farming enterprise, especially when improved yields of subsequent crops are experienced.
“The recent hard-line negotiations by the potato companies shows clearly that Tasmanian potato producers are very much price takers,” Tim said.
“This season’s price cuts by Simplot of $7/t and McCains at $15/t translates to a cut in gross margin returns of around $500 and $1000 respectively.
“This is a real kick in the guts to the growers, especially as potatoes are already a high-input, high-risk crop to grow.”
Hemp is usually planted around November 10 and harvested in late March which allows early spring silage cuts and time for autumn crops to be established prior to the onset of winter.
This season there is an increase in cropping area required in Tasmania to satisfy the strong growth in hemp food sales with the industry pushing for another 500ha of hemp to be planted.
“With the continued growth in hemp food sales, the industry is re-emerging as a viable option for growers,” Mr Schmidt said.
“It’s worth noting that there are new higher yielding varieties in the pipeline soon to become available in the next couple of years.
“Along with by-product market development, there is always more value set to be added to the bottom line.
“Additionally, with the recent senate inquiry producing 14 recommendations for the government to consider, the industry potential will continue to grow, especially if all 14 recommendations are implemented.”
