Australia-based fruit and vegetable startup Lockyer Valley Foods is initiating a new funding round to support the construction of a state-of-the-art processing facility. This strategic move comes at a time when the food and beverage industry trends indicate a growing need for enhanced processing capabilities.
In October, Lockyer Valley Foods successfully purchased 55 hectares of land designated for this facility. With operational works set to commence early next year, the company is poised for significant growth. The startup aims to raise A$50 million (approximately $31.9 million) through a Series A funding round, underscoring its ambitious plans to elevate its operations within the food and drink business.
CEO Colin Dorber sait that constructing the facility in Withcott, Queensland, could begin with a minimum investment of A$10 million. He further noted that production at the new facility is expected to start by late 2025.
Lockyer Valley Foods has proudly announced that this facility will be the first new fruit and vegetable processing plant built in Australia in decades. This development is vital, particularly as a recent survey conducted by the trade organization Ausveg has revealed that one in three Queensland commercial vegetable growers is contemplating exiting the industry this year. This alarming statistic highlights the pressing need for innovation and support within the food and beverage sector.
A “key driver” for the establishment of the new facility is the “inability to sell entire crops.” Lockyer Valley Foods pointed out that non-supermarket-grade produce often goes to waste due to a lack of adequate processing facilities. Chair Murray Chatfield emphasized the significance of this project, stating, “We will not only deliver one of Australia’s most sophisticated, lowest emissions facilities, but we will also secure the future of the fruit and vegetable industry in Queensland and reduce Australia’s reliance on a variety of imported produce.”
The Withcott facility will feature advanced capabilities, including can production and a canning plant, along with services such as freezing, powdering, and juicing. Additionally, it will incorporate a pallet manufacturing plant that focuses on recycling plastic waste, as well as a bio-methane plant that converts green waste to help make the facility off-grid.
The Series A funding round follows previous pre-seed and seed investments that were directed toward land acquisition and pre-construction expenses. Currently, Lockyer Valley Foods counts nearly 100 investors comprised of individuals and self-managed funds.
As the food and drink consumer trends continue to evolve, Lockyer Valley Foods is strategically positioning itself at the forefront of these changes, enhancing its processing capabilities to meet market demands effectively.
