News

A fairer reward to the farmer

Release date: 24 May 2010

TPI introduces a new pay scale to pass on profits to growers, as it aims to secure 7000 hectares in the coming growing season.

Following this year’s Harvest Review, we are changing the way we reward risk. This change will result in a fairer and more sustainable crop pay scale.

One of the critical changes will be the reduction in the amount paid to harvesting contractors who carry much less risk then the farmer but are paid at a consistent rate. This is going to change.

The strength of the Australian dollar against the US dollar means TPI requires a 20% price adjustment for the coming growing season.  10% of this is going to come from the harvest contractors. The remainder will come from crop payments only if the dollar remains high.

We believe our Tasmanian growers should enjoy a more sustainable pay scale.  Your price will be determined on the day your harvest is weighed at TPI, based on the crop assay and the rate of the Australian dollar on that day.

When the Australian dollar drops, the farmer benefits.  So, on the day your harvest is weighed at TPI, if the Australian dollar is 0.85 (against the US dollar) you will see no change to last year’s price. If it falls below 0.80 we pass on a pay increase.

This new pay scale rewards the farmers more, contractors less, and passes on profit when the Australian dollar drops.

In the coming season, we are pleased to announce we will be contracting 7000 hectares.

TPI continues to bring innovation to the poppy industry and is proud to be a Tasmanian based, Australian owned company committed to growing poppies in Tasmania.