Potato Magic Australia placed in administration.

Potato Magic Australia, a potato chip business owned by one of the country's biggest potato farmers, Paul Rennie, has been placed into administration.

Potato Magic Australia, at Griffith in south-west New South Wales, was established by Paul Rennie, who farms north of the city at Hillston.

Administrator PPB Advisory says the Griffith site has suffered a period of financial losses and it's now trying to find a buyer for the business.

It says it's licensed the operations of Potato Magic Australia to Mr Rennie, so the company can continue to operate and service clients.

The business currently employs four permanent and 12 casual staff, with an annual revenue of $1.2 million.