December 10, 2024

By Gerelyn Terzo, Global AgInvesting Media

Australia’s Lockyer Valley Foods is looking to raise $50 million (US$32 million) in a Series A round, the proceeds from which will be directed toward starting construction on a groundbreaking fruit and vegetable processing facility, the likes of which the country hasn’t seen in decades. The goal is to create a fully circular facility harnessing factory waste and community green waste to power the site through a bio-methane plant.

In its first tranche, Lockyer Valley secured over A$5 million (US$3.2 million), the proceeds of which were directed toward acquiring 55 hectares (136 acres) of land in Withcott, Queensland for the facility. The pre-seed and seed capital injection was provided by a cooperative whose members include farmers and growers. Lockyer Valley already has received a nod for the development application and green light to begin operational work by early 2025.

The company is building Australia’s maiden fruit and vegetable processing facility in 80 years. The steel facility includes canning, freezing, powdering and juicing capabilities. It also boasts a pallet manufacturing plant to recycle plastic waste that goes toward making the pallets, as well as a biomethane plant that relies on green waste from the plant and local communities. As a result, the groundbreaking facility will run completely off-grid.

Lockyer Valley Founder and CEO Colin Dorber told GAI News, “We have undertaken detailed risk analysis across technology, workforce, the production of products that are known to be desired in the marketplace, and our ability to price them competitively. Investors recognize that there will be a worldwide demand for our products and that we have all the elements in place to create a sustainable marketplace that is far superior to the current fragmented environment, which does not deliver optimal outcomes for either producers or consumers.”

As a leading exporter of fresh produce to Australia, the U.S. is second only to New Zealand, whose top exports to its closest neighbor include kiwi and avocados. Having gained the designation as Australia’s salad bowl, the Lockyer Valley region, located in Southeast Queensland, is critical to Australia’s food security.

Lockyer Valley Chair Murray Chatfield commented, “This has been in the planning stages for several years, and it’s so exciting to finally be ready to break ground. We will not only deliver one of Australia’s most sophisticated, lowest emissions facilities, 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.”

Lockyer Valley’s Dorber stated, “This is one of the most fertile growing regions in the world, and is a major contributor, year-round, to Australia’s produce needs, both fresh and processed. This facility delivers a secure food future for our country; long term growth and security for our producers, and a major reduction in waste and emissions – it really is win-win-win.”

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