Coles has committed to sourcing an additional six million kgs a year of Australian-grown vegetables which were previously sourced from overseas in a new eight-year agreement with Simplot.
Farmers in Tasmania, New South Wales and Queensland will grow millions of extra vegetables as part of a new agreement, Simplot said.
The deal expands and extends an existing supply contract between the pair until 2024.
It follows on from a five-year contract signed by Coles in 2014 to source 100 per cent Australian-grown vegetables from Simplot for Coles Brand frozen vegetable and potato products.
Simplot managing director Terry O’Brien (pictured left) said the extra volume for the new contract would be sourced from Simplot for the Coles and Birds Eye brands.
“The new contract will benefit more than 240 growers in Tasmania, New South Wales and Queensland by providing long term security for these growers and their communities,” he said.
“It means growers will need to plant more crops so Simplot can supply an extra 6 million kilograms of Australian-grown produce and this will benefit all those who contribute to the manufacturing of Aussie grown products including site workers, truck drivers and regionally-based service providers.”
Simplot produces 30 Coles Brand frozen vegetable and potato products as well as a broad range of Coles Brand products in chilled and frozen fish, chilled and ambient sauces, chilled pasta, meals and Australian-grown beetroot.
Simplot said the extra demand represents a 25 per cent increase in the volume of Australian grown frozen vegetables, including potatoes, the company supplies to Coles.
The new contract brings the volume that Coles sources from Simplot to 56 million kilograms of Australian grown frozen vegetables and potato each year.
Coles managing director John Durkan (pictured right) said the Simplot contract was an important extension of the retailer’s Australian-first sourcing policy.
“We know our customers want to buy Australian grown food so we’re pleased to be extending our 20 year partnership with Simplot to source more vegetables from Tasmania, NSW and Queensland,” he said.
“We started on the Australian grown journey with Simplot in 2006 when we entered into our first contract for Australian grown frozen vegetables and potatoes. Then in 2014 we converted all our Coles Brand frozen range to Australian-grown vegetables.
“Now two years later, we are delighted to be sourcing an extra 6 million kilograms of Australian grown frozen vegetables and potato each year from Simplot.”
