Woolworths may walk away from SPC deal

Supermarket giant Woolworths won't say whether it will stick with the deal it signed with SPC Ardmona just two years ago.

Victorian MPs want Woolworths to stick to the deal struck with SPC Ardmona two years ago, when taxpayers chipped in $22 million to keep the fruit supplier afloat.

The supermarket giant refused to commit to the rest of the five-year deal when asked if it was sticking with Shepparton-based SPC on Tuesday.

"Woolworths is currently in ongoing discussions with SPCA around our deciduous fruits volume commitments for 2017," a company statement said.

"Woolworths remains committed to having an Australian sourced canned fruit offer."

Shepparton independent MP Suzanna Sheed hopes Woolworths won't pull out of the deal it signed with SPC and the state government, which saved at least 500 jobs and guaranteed supply from farmers in 2014.

"It would be very, very disappointing if a company like Woolworths walked away from a circumstance that was put in place when the company was in crisis, when our town, our region was in a crisis situation," she told reporters on Tuesday.

Ms Sheed expects Woolworths to honour the deal that was signed.

"I come from a legal background and if you don't stick to the contract you pay a price for it," she said.

SPC refused to comment.

"We won't discuss the detail of our customer negotiations," a company spokeswoman told AAP.

Premier Daniel Andrews says the government is trying find out what Woolworths intends to do.

"We want to see companies like Woolworths buying local and supporting the jobs that come, the prosperity, the economic activity that comes from SPC," he told reporters.

"They're out there today talking about just wanting to get the best deal possible, but looking to continue to buy local."

Opposition Leader Matthew Guy believes Woolworths should stick to the deal it signed with his party's then coalition government in 2014.

"Woolworths needs to honour their contracts. Everyone in this arrangement needs to honour their contracts," Mr Guy told reporters.

Nationals leader Peter Walsh said the supermarket appeared to be taking farmers for fools after promising to bring them certainty just two years ago.

"It is appalling Woolworths would even consider reneging on this deal," he said.

In February 2014, SPC Ardmona signed a $70 million deal to supply Woolworths with 24,000 extra tonnes of produce, with the state government chipping in $22 million to modernise SPC's operations.


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Source: AAP



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