The company claims the closure of its Penola fries plant, in South Australia, is due to a flood of imported products and higher labor and electricity costs.
Louis Wolthers, president Australia and New Zealand, McCain Foods, said the industry was under pressure from imports and the problem of not having enough raw material of potatoes in Australia.
He added the company was in a ‘cost squeeze’ situation, suffering from ‘labour cost increases, fuel, electricity and raw material costs that are increasing annually’.
McCain said potatoes which were supposed to go to the Penola factory will now be sent to a plant at Ballarat in Victoria.