McCain Foods Plans To Upgrade Potato Processing Unit In Tasmania; The Move Will Create New Opportunities

McCain Foods Ltd., the world's largest producer of French Fries and Potato Specialties is planning to spend AU$10 million to expand its potato processing plant in Smithton, in north-west part of Tasmania.

The company required an upgraded storage facility, which would enable processing up to 55,000 tonnes of potatoes. McCain's agriculture director John Jackson said the upgrade would bring out operational efficiency. "It's an opportunity to bring our storage in one place and gain some efficiencies in our operations by having all our potato storage at the plant, or pretty much 95 per cent of it," he added.

Meanwhile, the company said, it is also planning to set up new a packing line, would cost AU$1.6 million.

Mr. Jackson said, by gaining some efficiency and controlling other costs from some of the existing operations, it would allow the company to compete better and hopefully lead to an increased productivity. He said, there would be an use of new line of equipment in driving volume in its unit.

You Win Some, You Lose Some

Six years ago, when the company shut its vegetable processing plant at Smithton, it affected 200 workers. While, Mr. Jackson is certain that food manufacturing has a future in the region, he also added, "Obviously we wouldn't be investing if we didn't think there's a future and, you know, we think there is a sound future going forward for manufacturing and food in Australia."

Mr. Jackson is confident that the expansion would increase the company’s production, while benefiting many local suppliers as well as creating new opportunities of employment.

He said, in Australia, if the company could drive some efficiency and become more globally competitive, then there's a real opportunity to infuse volume. But he also mentioned that there are certain challenges in its way of expansion, which need to be rectified.

Vote Of Confidence

Nathan Richardson, from Tasmania's Farmers and Graziers Association, believed the investment would help the state's potato growers. The move is definitely good for people in the Circular Head area to ensure job security, in his view.

The expansion plan would allow the 50 to 60 growers supplying McCain to farm with more conviction and efficiency.

Contact the writer on barsha23@gmail.com