Protein firm expands interstate

Operators of a protein-powder manufacturing firm at the centre of a major South Australian announcement have been quick to provide guarantees they will continue to develop operations in Horsham.

Australian Plant Proteins co-founder and director Brendan Mckeegan said a $230-million greenfield project that tapped into South Australia’s pulse industry reflected the company’s longterm interstate expansion plans.

He said the firm remained committed to a Horsham factory and its potential to grow to meet rapid product demand.

“We’re building our network and capacity,” he said.

“We’ll take the blueprint from the Horsham facility to South Australia to where the plan is to build a facility with a 25,000-tonne production capacity.

“That’s about three times the size of what we do in Horsham and it will have the capacity to directly employ about 120 staff.” The Horsham plant, the only commercial-scale pulse-protein factory in Australia and born from a Wimmera Development Association business case, has a workforce of about 35 with plans to push it up to about 50.

Confirmation of the firm’s South Australian expansion project came with a $113-million Federal Government funding package.

Federal Finance Minister and South Australian Senator Simon Birmingham said plans involved a $378-million partnership between Australian Plant Proteins, Australia’s Thomas Foods International and AGT Food and Ingredients and construction of three different types of plant-protein manufacturing facilities to supply domestic and international markets.

“This investment by government along with the private sector will put South Australia ahead of the pack in the manufacturing of products for the high-growth domestic and booming global plant-based foods market,” he said.

“It is a major step forward in transforming South Australia into a plantbased protein manufacturing and export powerhouse.

“It will not only generate thousands of local jobs but has the potential to generate billions in export dollars for our state.”

The South Australian government had contributed $65-million to the project.

Opening the door

South Australian Premier Steven Marshall said the announcement was ‘transformational’ and would create a large-scale plant-based food and beverage value chain for South Australia and unlocked a new export industry for the state and nation.

“South Australia 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,” he said.

Mr Birmingham said South Australia produced more than a quarter of Australian pulses and the project opened the door for Australia to multiply the value of the product by eight times.

Mr Mckeegan said the South Australian move represented a stepping stone in a process that needed a national approach.

“Strategically it makes sense. We’re definitely committed to Horsham as we would be for any developments in this space,” he said.

“This move is about complementing what we’re already doing and working on in the Wimmera.

“The South Australian government has been very progressive in identifying an opportunity and this enables us to be more competitive on a global scale.”

Australian Plant Proteins, in response to considerable product demand, had considered developing a Greenfields plant in Horsham to work in tandem with its factory at Horsham Enterprise Estate.

Victorian Nationals leader and shadow Agriculture Minister Peter Walsh, meanwhile, has accused the Victorian Government of losing thousands of jobs to South Australia.

Mr Walsh said the Andrews government had ignored warnings in 2020 that a lack of support for the project in Victoria put the state at risk of losing the investment.

“International demand for plant proteins is booming, but instead of seizing this opportunity to become a powerhouse supplier in an emerging new market, Victoria will sit on the sidelines watching South Australia reap the rewards,” he said.

“The government was given every opportunity to support the expansion of Australian Plant Protein’s Horshambased operations, but deliberately ignored the call.

“The company was crying out for government support when I visited the Horsham facility in May 2020. They were looking at their options, with a clear preference to remain in Victoria.

“Victoria losing local jobs and investment to South Australia is no way to support regional communities and our economy to recover and rebuild.”