Potato processor McCain Foods unveils $10m upgrade for Smithton plant

THE McCain’s potato factory at Smithton will soon have new packing facilities as part of a $10m upgrade aimed at keeping it viable.

McCain factory at Smithton to close

THE McCain potato factory at Smithton will soon have new packing facilities and more storage in line with a $10 million upgrade aimed at keeping it viable.

The investment meant the factory — which makes french fries and other potato products — would be able to store 55,000 tonnes of potatoes and the new packing line would increase efficiencies, the company said today.

McCain Foods Australia/New Zealand agriculture director John Jackson said while the investment would increase efficiencies, the plant was still struggling to stay viable in a global market.

The Canadian company closed its vegetable processing plant in Smithton in 2009, leaving it with just the potato operation.

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

McCain said rising local water and energy costs were having an impact on the plant’s overall profitability.