A $14 million government-funded adjustment package for the potato industry would in part come off the back of growers, who have warned they cannot afford to levy themselves to pay for a deregulated market.
Third-generation grower and Potato Growers Association (PGA) executive officer Simon Moltoni said a capped $2m of a $14m industry adjustment package, announced by the State government, would be matched $1 for $1 to funds raised by growers.
"The $2m is smoke and mirrors, because if industry puts up $1 we get a dollar, until we hit $2m and that's it,'' he said.
"We don't have that money lying around and growers definitely are not in a position to levy themselves $2m to get that money.
"They would be keeping ever possible penny in their pockets.''
The government plans to deregulate the WA potato industry from July 1 and will used $14m from the Royalties for Regions program to help growers adjust to the new market.
Regional Development Minister Terry Redman said this week the package would support growers and included $2m for industry development.
"Industry will be supported with funds matched dollar-for-dollar, allowing it to undertake research and development, invest in marketing and retain access to varieties," Mr Redman said.
"I have been advocating hard for a suitable package to help this industry moving forward with deregulation and I believe a smooth transition will be possible in coming months.
"At a recent meeting in Manjimup attended by 150 growers and industry participants, there was unanimous support to bring forward deregulation and I gave my commitment for Royalties for Regions to support the adjustment package."
Mr Moltoni said he raised concerns on behalf of growers at a meeting with government representatives last Friday, held after the support package was announced.
"We are looking at the detail on how that money is put together or rather how we can pull it apart and get to it,'' he said.
"We discovered they may look at trying to change it.
"It demonstrated to us, their lack of meaningful consultation with us, through the whole process."
Agricultural and Food Minister Dean Nalder said further meetings would be held with industry representatives.
"The funding arrangement has been set up on what we believe is a fair and equitable amount," Mr Nalder said.
"We will work with them on the distribution."
Mr Moltoni said a panel was being formed with Mr Nalder's help, which would include representatives from the Potato Marketing Corporation (PMC), the PGA, Department of Agriculture and Food and government.
The panel has been set a high priority to work through the issues the industry has with the changes as quickly as possible.
"We have already put through our recommendations," Mr Moltoni said.
"Mr Nalder also seems keen to get this panel together as soon as possible.
"They will be able to have direct communication, to work out the eligibility for the gap payment, criteria and finalise some critical outcomes for us."
Mr Nalder acknowledged concern that the sector should have been consulted more after State Cabinet decided to deregulate.
"We were looking to do this (deregulation) after the election, but the industry was calling for it to be done earlier, so we proceeded post-haste," Mr Nalder said.
Mr Nalder said the decision would end uncertainty for the State's potato growers who provide high-quality potatoes for the local market, and also packers, processors and transporters.
"It opens up the market so we can really encourage other potato growers to come in and look at opportunities," he said.
"We believe this is the right thing for the State.
"We know that some potato growers are concerned and feel that they are still going through disruption and change and we are trying to support them with funding.
"We still want to work with the industry to work out the best possible process of making the payments."
He said the PMC would wind up by the end of the year.
The next steps will involve consultation about the repeal process with key stakeholders including the PMC, Treasury, PGA Potato Growers Association, VegetablesWA, wash packers and processors.
"Following deregulation, growers are expected to focus on gourmet and seed potatoes, which in unregulated markets offer higher prices than standard lines,'' Mr Nalder said.
"Growers seeking economies of scale may also move into producing processing potatoes. Growers of other vegetables may also produce potatoes as a profitable rotation option.
"Ultimately, the net effect of deregulation will be increased production and processing, with the greatest growth expected in the seed and processing sectors."