here is something to ponder

Australia might be about to lose it's ability to process vegetables....this has to be a bad thing and what will Julia and Tony say should be done about it...
I mean really these sorts of losses can not go on much longer or this country will be incapable of doing anything more than dig holes in the ground.

ABC Online...
One of Australia's major food manufacturing companies is warning that it may shut down two of its vegetable processing factories in New South Wales and Tasmania.

Simplot Australia, one of the few remaining players in the food manufacturing sector, cited the high Australian dollar, comparatively high labour costs, and dramatically cheaper imports as the causes of the closure threat.

The facilities at risk are at Bathurst and Devonport with the latter being the only remaining processor of frozen Australian vegetables.

Simplot's chief executive Terry O'Brien has described the situation as "disastrous".

"Obviously we're not taking this thing very lightly because we know that there are a lot of flow on impacts," he said.

"It's a disaster quite frankly.

"The bottom line is that Devonport does not make anywhere near enough money to allow us to give a reasonable return to our shareholders and to re-invest in technology and capabilities in that plant for the future."

Mr O'Brien says he is not looking for the kind of assistance car manufacturers received, but confirmed that he is in talks with the to Government about whether there could be money to make the plants more cost-efficient to run.

That said, even Government assistance may prove futile.

Hundreds of jobs on the line

If the company decides the plants are untenable, Bathurst would close next year with the loss of about 200 jobs.

Devonport would follow three or four years later, putting 160 people out of full-time work.

The knock-on effect also would leave the farmers who supply the factories with no-one else to sell to.

Agrifood consultant David McKinna says that while the dollar is not directly to blame for the situation, it has accelerated the industry's demise.

The Australian dollar hasn't caused the problem but it's certainly accelerated it and exasperated it. When we've got the dollar around 70 cents, 80 cents, we're sort of back into the game a bit.

Without confirming whether or not we are on the verge of witnessing the end of Australia's capacity to process its own fruit and veg, Mr McKinna suggested the outlook was bleak.

"The Australian dollar hasn't caused the problem but it's certainly accelerated it and exasperated it," he said.

"The economists in Canberra are saying that we could be seeing a 70 cent dollar, not in the next five years but maybe longer but when we've got the dollar around 70 cents, 80 cents, we're sort of back into the game a bit.

"One of the issues is too that if we invest in technology we can get back in the game but the problem is the profitability of factories is not sufficient to give you the confidence to invest.

"I don't think there'd be a buyer for vegetables.

"One potential opportunity is for Asian buyers to look at thee things to do, production to send back to China but again they wouldn't be doing that in vegetables because there's a cost.

"They can do it much cheaper in China or New Zealand."

Earlier today, Parliamentary Secretary for Agriculture Sid Sidebottom said the government would do everything in its power to keep the Devonport plant open and protect employees.

In north-west Tasmania however, about half of mixed farmer Matt Ryan's business goes into supplying the Devonport factory and he is still coming to grips with what closure would mean for him and his community

"Farmers in Tasmania made a living before the processors came along and they'll have to learn to make a living if they're not here," he said.

"The flow on effects to the economy and the businesses in places like Devonport is what really bears the brunt of it.

"That's what probably going to have the biggest effect I think."

Dave R.