A CONSORTIUM made up of Australian Plant Proteins, Thomas Foods International (TFI) and AGT Foods are set to combine to set up a hub of plant-based protein and plant-based food production facilities in South Australia that will be one of the biggest of its kind when complete.
The $378 million spending spree has been underpinned by a $178 million in grants from both the federal and state governments.
APP is the lead partner in the consortium and will construct a major plant protein extraction facility.
TFI and AGT Foods will build and operate a complementary plant-based extraction and meat alternative manufacturing operations.
The SA development is set to more than quadruple APP's existing production capacity out of its facility in Horsham, Victoria and will be one of the largest enterprises of its kind in the globe.
Of the $378 million total spend on the plant-based facilities the APP component will cost $227 million.
The federal government will contribute $113 million overall under its Manufacturing Modernisation Initiative Collaboration Stream and the state government $65 million, bringing total government contributions to $178 million.
It will mean APP will have a factory capable of producing 25,000 tonnes of high value plant protein extract.
The exact location of the APP plant is yet to be released but officials confirmed it will likely be somewhere in the wider northern Adelaide region.
APP's operation at the plant will be similar to its Horsham plant, where it extracts high-protein content isolates from pulses including faba beans, lentils and a range of other common crops.
Co-founder and director of APP Phil McFarlane said the expansion into SA provided valuable geographic diversity for the business with a footprint now extending over two major pulse-producing states.
Along with the big move in South Australia, APP is also looking to double processing capacity at its Horsham plant as it looks to meet burgeoning global demand.
Both levels of government were delighted with plans, which when all facilities are operational, will form one of the world's largest plant protein and plant-based food manufacturing hubs.
An expected 8,500 jobs are expected to be created as a result of the project.
Fellow APP co-founder and director Brendan McKeegan said the South Australian initiative recognised the soaring global demand for high quality protein alternatives.
"Since commencing production in Victoria, we've seen phenomenal growth in demand from domestic and international manufacturers who recognise the high quality and diverse application options of our Australian product," Mr McKeegan said.
Announcing the new initiative today, Minister for Finance and Senator for South Australia Simon Birmingham said this investment put South Australia in pole position to take advantage of plant-based protein opportunities.
"This investment by Government along with the private sector will put SA ahead of the pack in the manufacturing of products for the high-growth domestic and booming global plant-based foods market," Mr Birmingham said.
South Australian Premier Steven Marshall said the project reflected SA's strong pulse production industry.
"South Australia has the existing pulse production capability to support the establishment of end-to-end pulse processing in an exciting new industry," Mr Marshall said.
TFI managing director Darren Thomas said the step into plant-based proteins was something the company had been looking at for a number of years.
Although TFI is a primarily red meat-based business, Mr Thomas said the step into alternative proteins was a natural extension.
"We're a food business - we do happen to play in the red meat sector, but we're also in seafood, we've been in produce so for us, it's a natural extension to our food business," Mr Thomas said.
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Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
