Mitolo Family Farms launches recyclable bag as sale to Canadian pension giant nears

One of SA’s biggest family-owned farms has spent years developing a new recyclable bag for Coles – ahead of a deal to sell a majority stake to a Canadian pension giant.

Mitolo Family Farms has partnered with Coles and packaging manufacturer Detpak to create a new recyclable bag for fresh potatoes.

Mitolo’s premium Gourmandine potatoes will be sold in the new paper bags, which contain 64 per cent less plastic when compared with previous packaging, delivering an 8.2 tonnes reduction in plastic used each year.

Mitolo Family Farms managing director Frank Mitolo said the new packaging was the result of more than three years of research and development, and he hoped it would lead to other fresh produce items being packed in easily recyclable products.

“This bag may sound like a simple solution, but it has taken immense work to ensure there is absolutely no compromise to the quality of the potatoes while allowing us to achieve the sustainability outcome we were seeking,” he said.

Mitolo Family Farms managing director Frank Mitolo with marketing coordinator Gemma Mitolo and Detmold Group general manager of innovation and sustainability Tom Lunn. Picture: Supplied by Mitolo Family Farms

“We had to consider everything from LUX lighting levels in the supermarket through to breathing holes that don’t tear, new sealing solutions, bag strength and more.

“We know Australian consumers are increasingly looking for sustainable supply chains for the products they purchase, and we’re proud to be leading the way and partnering with Coles for a product that so many families love to cook and share.”

After growing Mitolo into Australia’s largest potato grower and a major producer of onions, Mr Mitolo and brothers Darren and John sold off a majority stake in the family business earlier this year to Canadian superannuation fund Ontario Teachers’ Pension Plan (OTPP) and its Australian agriculture subsidiary AustOn Corporation.

The deal is due to close later this month.

Mr Mitolo said it followed a period of significant growth for the company - boosted by recent acquisitions including Thomas Foods International’s fresh potato business in 2020 - and the investment would enable it to capitalise on future growth opportunities.

“We recognised that the next steps in our growth will require additional capital to enable us to enter new markets and respond to emerging trends in agriculture and food manufacturing,” he said.

“Ontario Teachers understand the cyclical and long-term nature of agriculture and we believe the partnership will deliver some very significant scale to our capabilities.”

OTPP has further expanded its interests in South Australia’s agricultural sector via its investment in Mitolo, which recently acquired the Rowett family’s expansive landholding in Kynoch, in the state’s South-East.

The acquisition included 3932ha of farmland 50km north-east of Keith, currently planted to a mixture of red and brown onions, canola, faba beans, barley and lucerne.

The Mitolo family began growing potatoes and onions more than 50 years ago, and currently grows, harvests, packs and markets potatoes and onions across the country.

Its Gourmandine potatoes are exclusively sold at Coles supermarkets, and the new paper packaging extends on previous sustainability measures taken by the business – including cutting its use of plastic packaging by 60 tonnes in 2022 by reducing the thickness of plastic used to bag potatoes.