The Australian state of Victoria has given the Dutch company Farm Frites the go-ahead to begin construction of a brand-new French fry factory. It will be built in Dooen, strategically located near key growing regions and with excellent rail and road logistics connections.
At the beginning of this year it was news Already delivered from an Australian factory by Farm Frites. With the closure of several large factories in Victoria, the state could use some positive news. So, the French fry factory's arrival is no big surprise. The processing lines are scheduled to begin operating in early 2027, and they will have a capacity of processing 250.000 tons of potatoes annually.
Spreading risks
Farm Frites has been operating in Australia for nine years and has grown its market share to an annual revenue of $160 million (Australian dollars), equivalent to €90,25 million. "A local factory is a logical next step from a risk perspective," Farm Frites manager Kieran Prestidge told local media.
The company will sell its fries in Australia itself. It's a truly massive market. It has deals with KFC, which has 800 restaurants in the country, and Hungry Jack's, owned by Burger King.
To supply the factory, between fifty and sixty growers are needed, for which the processor can tap into growers in Victoria, New South Wales, and South Australia. This makes the company a direct competitor to McCain, which has a factory in the same state, a two-and-a-half-hour drive away. This potato processor also has a French fry factory on the island of Tasmania.
State aid
Farm Frites is investing the equivalent of €169 million in the construction, including funding from the state's local government. The total amount has not been disclosed, but the state is committed to creating 150 new jobs..