WA potato growers to leave industry

The world of the spud farmer does not usually make the news - except in Western Australia that is, where an ideological and emotional battle over a 70-year-old potato marketing regime that sets prices and production quotas has ended.

The state government is to deregulate the industry and scrap what many see as the archaic Potato Marketing Corporation, in line with the positions of other states and for other agricultural products for years.

The news was celebrated by the state's best known grower Tony Galati, known as the potato king and owner of the successful SpudShed supermarket chain.

"At last we have clarity," he said.

But smaller growers complain that more than 15 per cent of farmers will be pushed out of the industry by the likes of the wealthy Mr Galati, who can now produce as many potatoes as he wants with economies of scale.

Mr Galati was slapped with a court order last year stopping him growing more spuds than allowed.

Agriculture and Food Minister Dean Nalder said he saw the move as the right thing for WA, offering choice and freedom along with greater export opportunities.

Growers will share in $12 million in money to help the transition to the new regime, with another $2 million for industry development.

The Potato Growers Association has asked for $24 million.

Potato grower Keith Taylor, of Busselton, said the present regime was working well and he now expected the industry to go the way of other products such as milk and bread, with deregulation enabling big retailers such as Woolworths and Coles to dominate it.

"It's par for the course in the vegetable industry," he told ABC radio.

"It will mean prices that have never been lower, while consumer prices stay the same and retailers substantially increase margins."

Former grower and Potato Growers Association executive officer Simon Moltoni said while farmers knew it was coming they were gutted about the modest amount of transition money.

He said about 15 per cent of growers may consider leaving the industry.

"The townships of Pemberton, Manjimup and Busselton will feel it pretty hard," he told reporters.