McCain Foods now owns two of Manitoba’s three major potato processing plants.
The New Brunswick-based food industry giant last week bought Midwest Food Products Inc., which operates a french fry processing facility in Carberry, Man.
McCain already owns a french fry plant in Portage la Prairie, as does Simplot Canada Ltd.
“Processing french fries is our business and this was an opportunity to strengthen our position in the North American market,” said McCain spokesperson Lucie Carswell.
The increased concentration of ownership arising from the deal caught the attention of one potato industry official.
Read Also
Alberta crop diversification centres receive funding
$5.2 million of provincial funding pumped into crop diversity research centres
“I suppose in one sense we’ve got one less competitor in the market,” said Bruce Hood, a Carberry area potato grower and president of Keystone Vegetable Producers Association.
Nevertheless, he said, growers see the purchase as good news, especially in light of McCain’s promise to invest $13 million in equipment upgrades at the plant over the next few years.
“We would view it as a positive, that’s for sure,” said Hood.
“They’re the largest french fry producer in the world, so maybe that’s who you want to be dealing with.”
Association secretary manager Garry Sloik welcomed the news, which he said came as a surprise to most in the industry.
“It’s a vote of confidence in Manitoba for them to want to expand here,” he said.
Carswell said McCain will honour existing grower contracts with Midwest. As for next year, she said the company will offer contracts based on the orders it receives from customers.
Manitoba potato growers were chagrined last spring when Midwest cut the number of grower contracts by about one-third because of declining demand for french fries.
McCain operates more than 55 production facilities on six continents, employing more than 20,000 people worldwide. With the purchase of Midwest, it will operate 16 plants in Canada.
The Carberry plant, which has been in business since 1962, produces more than 180 million kilograms of french fries annually and employs about 400 people. Midwest has been owned jointly by Simplot and Nestle Canada since 1986.
McCain’s other plant in Portage la Prairie is capable of producing more than 540,000 kg annually and has more than 500 workers.
The biggest market for the two plants is the United States, with the Carberry plant shipping roughly 75 percent of its production south of the border and the Portage facility shipping roughly half of its output to the U.S.
A McCain official said the two plants will remain separate business entities and operate under independent local management.
