Plant protein manufacturing poised to transform SA with $113m investment

01-03-2022

South Australia will become home to the largest pulse protein ingredient manufacturing capability in Australia, following a $113 million funding package from the federal Government. This will also deliver thousands of new jobs for the state and supercharge Australia’s place in the global plant-based food value chain.  

The project is being led by Australian Plant Proteins (APP) under the Collaboration Stream of the $1.3 billion Modern Manufacturing Initiative to transform local production of pulse protein ingredients and help meet the growing global demand.    

Quadruple production

APP owns Australia’s only commercial scale pulse protein extraction facility. This project will quadruple production in South Australia, to produce 25,000 tonnes of pulse protein yearly. 

Partnering together with one of Australia’s largest family-owned food producers, Thomas Foods International and the Australian Milling Group, over $378 million will be invested in the construction of three plant protein manufacturing facilities supplying domestic and international markets. 

South Australia produces over a quarter of all Australian pulses and this project gives Australia the opportunity to value-add by up to eight times the value of the product. That value will be captured here in Australia for Australians' benefit. 

Locally based plant protein ingredient and food manufacturing will create a new high value-added domestic supply option for pulse growers which will in turn have downstream benefits to local communities. 

State contribution

The South Australian Government has also contributed $65 million to the $378 million project.  

Minister for Finance and Senator for South Australia, Simon Birmingham said this investment was a win for jobs, a win for SA’s pulse farmers and it would take the state’s manufacturing capabilities to a whole new level.

“This investment by the 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,” Birmingham said. 

“It is a major step forward in transforming South Australia into a plant-based 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. 

“Demand for plant-based foods is booming globally. Just as SA leads Australia in renewable energy generation this investment will put us at the forefront of capitalising on this environmental trend too.”

Spur investment

Minister for Industry, Energy and Emissions Reduction Angus Taylor said projects such as this will help spur further private investment to help our manufacturers scale up.  “Manufacturing is strong in this country and we want to see it become even stronger,” he said.

“Australian made food products with Australian produced and manufactured ingredients will give our food manufacturers a significant advantage in this rapidly expanding global market. These investments are about increasing the productivity growth and job creation that we know collaboration can deliver.

“We also know that for every manufacturing job we create, at least another three are generated in other industries thanks to the multiplier effect that our investments have on the broader economy.”  

"Transformational" says Marshall

Premier Steven Marshall (pictured above) said this transformational announcement will create a large-scale plant-based food and beverage value chain for South Australia and unlock an entirely new export industry for the state, and the 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,” Marshall added.

“You need a strong economy to be able to invest in hospitals, schools and roads and you can trust my Government to build a stronger future for all South Australians.

“Under the State Liberal Government, we have the fastest growing economy in the nation, allowing us to invest in hospitals, schools and public services which have driven us to be independently recognised as the most liveable place in the nation, and third most liveable in the world.

“Today’s announcement is all about creating more jobs, opening the door for more South Australian exports and making sure we create a stronger future for our kids and grand-kids,” Marshall added.

The project is expected to create up to 1,345 construction jobs and 384 new direct manufacturing jobs by 2024 and eventually support more than 8,500 new full-time positions in the supply chain and economy by 2034.  

It is also expected to generate up to $4 billion in exports by 2032, including to the US, south-east Asia and Europe.

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