McCain Foods Australia invests AU$57 million in Ballarat potato processing plant

McCain Foods Australia has announced a AU$57 million investment to revitalise its potato processing plant in Ballarat, which is expected to create 100 construction jobs and increase production by 25 per cent.

"We're here for the long haul" is the clear message McCain Foods wants to send to the central Victorian town of Ballarat.

As a result, an extra $12.5 million worth of potatoes will need to be planted to meet increased production demand over the next eight years.

Ballarat plant manager Karl Thin said the investment showed the company was serious about staying in the central Victorian town.

Karl Thin, Ballarat plant manager:
 

“We've been a part of the Ballarat community for around 45 years now and we want to see that well into the future.”

“At this stage of our life cycle in Ballarat, it's very important to make sure our future here remains permanent.”

“We're here for the long term.”

Mr Thin indicated the "well overdue" work would create improved access to the potato plant, resulting in better road safety.

The regeneration project will also expand processing areas and install a new receiving storage facility.

Relationship 'improves' amid industrial action

Hundreds of McCain Ballarat employees walked off the job in 2016, pushing for better job security and entitlements.

McCain was forced to import workers to ensure its production of french fries continued uninterrupted.

Mr Thin said the $57 million expansion had been put on hold due to the industrial action, but ensured the relationship between its workers had strengthened.

Karl Thin, Ballarat plant manager:
 

“We've significantly improved the relationship between our employees and their representatives.”

According to the plant manager, employees had reacted to the expansion "very favourably" and were positive about the future the company was cementing in Ballarat.

Production needs to be sustainable, farmer says

McCain Growers Group chairman Chris Stephens said while the expansion was welcomed, he believed production needed to be sustainable.

Chris Stephens, chairman McCain Growers Group:
 

"Farmers still have to be making money.”

“There is a possibility for an increase in productivity for growers, however that productivity comes at a cost as well.”

“We can't produce potatoes at cost price or less than, or only make a few dollars on top.”

“We need to be making a good income so we can spend money on building our farms to sustain that increase in production."

Mr Stephens said McCain had been "good" to the greater Ballarat area, and he remained cautiously optimistic about the project.

Chris Stephens:
 

“Without them there's a lot of farmers in this area in the past 40-odd years that wouldn't be where they are today.”

“We can only hope the company and the growers can work together to improve each other's standing and sustainability.”