$10 million upgrade for McCain's Tasmanian potato processing plant

The McCain Foods Smithton plant in Circular Head, Northern Tasmania — which processes potatoes for French fries and potato products for the local and interstate markets — is getting a $10 million makeover. Over the next two years, the on-site storage facilities will be upgraded and a new packing line will be installed.

McCain Foods will spend an estimated $7.9 million on the on-site storage and $1.6 million on the new packing line.

The improved storage facility will hold up to 55,000 tonnes of potato for processing.

McCain Foods Australia/New Zealand Agriculture Director John Jackson said the investment in upgrading storage and a new packing line will increase efficiencies and make the plant more sustainable.

“While this added investment will increase the plant’s capability and efficiencies, we still have a number of challenges before us in maintaining the competitiveness of the plant to ensure its long-term survival,” he said.

“One of the challenges, in such a competitive market, is maintaining and increasing efficiencies to drive cost reduction. Even in Northern Tasmania, we have to realise that we are competing in a global commodities market.

“In addition, rising local water and energy costs impact on the plant’s cost base, reducing its overall profitability against global competitors.”