Australia-based fruit-and-veg start-up Lockyer Valley Foods has embarked on a new funding round as it readies the construction of a processing facility.
In October, the business acquired 55ha of land for the facility. It has secured approval for operational works, which are scheduled to start early next year.
Lockyer Valley Foods is looking to raise A$50m ($31.9m) through a Series A funding round.
CEO Colin Dorber told Just Food the company can start building the site in Withcott in Queensland with "a minimum A$10m". Asked when the facility could start production, Dorber added: "Late 2025."
The new site marks the “first new fruit and vegetable processing facility to be built in Australia for decades”, Lockyer Valley Foods said in a statement.
Citing a survey by trade body Ausveg, Lockyer Valley Foods said that one in three Queensland commercial vegetable grower is contemplating exiting the industry this year.
A “key driver” is the “inability to sell entire crops”, with non-supermarket-grade produce often wasted due to insufficient processing facilities, the company said.
Lockyer Valley Foods chair Murray Chatfield added: “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.”
The Withcott plant will feature a can production and canning facility, along with freezing, powdering and juicing.
It will also include a pallet manufacturing plant recycling plastic waste and a bio-methane plant using green waste to make the facility off-grid.
The Series A round follows pre-seed and seed investments, which covered land purchase and preconstruction costs. So far, Lockyer Valley Foods' investors number just under 100 individuals and self-managed funds, Dorber said.
