Thomas Foods International: Meat processor’s $378m plant-protein project

SA’s plant protein industry could surpass our world renowned seafood and wine markets, the Premier has declared, with a $378m venture that will create thousands of jobs.

South Australia will become a world-leading plant-protein powerhouse, under a $378m investment that will create more than 8500 full-time jobs and generate billions of dollars in exports.

Thomas Foods International, one of the biggest red meat processors in Australia, has joined forces with Australian Plant Proteins and Australian Milling Group to build three new manufacturing hubs in SA.

The venture, partly funded by the federal and state governments, is being touted as the biggest investment in the short history of Australia’s expanding plant-protein industry.

Premier Steven Marshall said the project would create “opportunities for the next generation”, declaring plant-protein exports could soon become one of SA’s biggest industries, surpassing seafood and wine exports.

“This could rival seafood, it could rival wine out of South Australia, it is one of the fastest growing sectors in the world at the moment and SA is getting in on the ground floor,” Mr Marshall said on Tuesday morning.

Thomas Foods managing director Darren Thomas said the time was right to expand into the plant-based protein industry – but red meat will remain at the core of the business. Picture: Brad Fleet

Premier Steven Marshall says the industry could be huge. Picture: Brenton Edwards

Construction of two hi-tech manufacturing facilities in regional SA and one in Adelaide’s northern suburbs will begin by the start of next year.

Thomas Foods managing director Darren Thomas said the time was right to expand into the plant-based industry, while keeping red meat processing at its “core”.

“The market for plant-based products is expanding rapidly and we see great opportunity to leverage our experience and expertise into this exciting new (industry) for local farmers and consumers across the globe,” Mr Thomas told The Advertiser.

SA farmers will produce pulses that the manufacturing hubs will use to make various plant-based products, including meat alternatives, protein powders, protein bars and non-dairy protein drinks.

Finance Minister Simon Birmingham said the investment was a “major step forward” for SA. Picture: NCA NewsWire / Brenton Edwards

Products will be pumped into a burgeoning domestic market, as well as exported around the world, seizing on the rapidly growing demand for plant-based proteins.

The ambitious project will create more than 8500 full-time positions in the supply chain and wider Australian economy by 2034. It will also generate $4bn in exports by 2032, with the US, Southeast Asia and Europe expected to become key markets.

The federal government has awarded a $113m grant towards the project, while the state government committed $65m. The Thomas Foods, Australian Plant Proteins and Australian Milling Group consortium funded the remaining $200m.

Thomas Foods International Group engineering manager Nekta Nicolaou at the company's new abattoir near Murray Bridge. Picture: Supplied

Finance Minister Simon Birmingham said the venture allowed SA’s pulse farmers to take the state’s manufacturing capabilities “to a whole new level”.

“It is a major step forward in transforming SA into a plant-based protein manufacturing and export powerhouse,” Senator Birmingham said.

Scott Morrison said the federal government’s strategy of partnering with the private sector helped “leverage billions more in additional investment”.

“We are backing in our manufacturing sector to create jobs and grow the economy,” the Prime Minister said.

Mr Marshall said the three manufacturing hubs would add more than $500m a year to the state’s economy.

“SA is already world-­renowned for our premium food and produce and we now have a first-mover opportunity to capitalise on the emerging global demand for plant protein-based food,” Mr Marshall said.

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Originally published as Thomas Foods International: Meat processor’s $378m plant-protein project