SPC Ardmona has cut its projected peach intake further for the approaching season by about five per cent for some growers.

The latest forecast follows announcements in May of the indicative intake and news that the cannery was planning to reduce the number of its suppliers.

SPC Ardmona has blamed a global glut of fruit on the downward projection and said it was making the announcement early to allow growers to reduce their irrigation and pruning costs.

But the action has upset Fruit Growers Victoria which said it had been shut out of consultation and accused the company of putting its supplier base under threat.

The company recently wrote to its growers advising of the five per cent cut and pointing out the high comparative cost of fruit purchases in Australia, compared to Greece, the United States, South Africa and other countries.

SPC Ardmona acting manager Steve Perkins said a canning conference earlier this year had identified a world glut of fruit that was forcing down prices and affecting Australian domestic prices.

In some countries the prices have been dropping by 30 to 40 per cent.

However, he expected the peach prices for growers to be no lower than last season.

Mr Perkins said the company expected to take all of growers' apricots and plums and would take about the same amount of pears as last year.

Fruit Growers Victoria general manager John Wilson said most of SPC Ardmona's peach production was sold on the domestic market, yet the company was making decisions based on the international markets.

"We appreciate it is a difficult situation but we believe they are obliged to protect the supply base if they want a continuing supplier base," Mr Wilson said.

He said the company's offer to take over quota fruit at $150/tonne was not in the spirit of good partnership with its suppliers.

"Growers are angry. Many growers do not see a future in fruit growing as a consequence of the cannery's behaviour."

He said the company should be providing an environment that would encourage growers to invest.

Mr Perkins said the company intended to announce prices to growers before significant intakes had begun.

Mr Wilson said there was a SPC grower consultative committee set up by the Trade Practices Commission as a condition of SPC's merger with Ardmona for 10 years, with an option to continue it.

He said the company had failed to call a meeting of the committee on a regular basis to discuss the pricing and tonnages with growers.

Mr Perkins told Country News it had informal meetings with growers but he said there was no formal consultative committee.

"I find it amazing for him to say that as we have sat through a number of meetings where this committee was discussed," Mr Wilson said.