McCain Foods invests $600 million in southern Alberta town to double capacity

French fry giant McCain Foods Ltd. has announced it will spend $600 million to double the size of its potato processing facility in the southern Alberta town of Coalsdale.

The Toronto-based food manufacturing company — which boasts that it makes one in every four French fries produced worldwide — is making the largest investment in its history in order to double output at its Coaldale facility, just east of the city of Lethbridge.

McCain says the project will create two new production lines intended for French fries and one for other frozen potato products.

After the project is finished, the expansion is expected to create 260 new jobs, which is more than double the current workforce.

“The development in Alberta marks our largest global investment in our 65-year history, totalling $600 million, while underscoring our commitment to the future of agriculture and innovation in Canada,” said McCain Foods CEO Max Koeune in a news release.

“This will fuel continued growth for the business, allowing us to serve key markets further by bringing customers high-quality potatoes that begin with our dedicated local farming community.”

McCain said the expansion, for which construction is expected to begin later this year, will also have a heavy focus on environmental sustainability.

The project includes plans for wind turbines and solar panels to provide 100 per cent renewable electricity to the facility, as well as the use of renewable biogas generated at the site’s wastewater treatment facility to offset natural gas demand.

Related Stories:

• Grocery CEOs deny accusations that food price inflation is driven by profit mongering

• MPs grill Canadian grocery chain CEOs about profits

• Calgary couponer saves $10,000 in grocery shopping every year

Koeune told The Canadian Press that there will be part of the expected growth to continued recovery in the restaurant and hospitality sector. Demand for French fries and other frozen potato products collapsed in 2020 due to the COVID-19 pandemic and restrictions on in-person dining.

The expansion also speaks to the company’s confidence in the future of Canadian agriculture, Koeune said. The company has contracts with Alberta potato farmers, the majority of them in the Lethbridge region, to supply the Coaldale facility.

“Doubling our production capacity in Coaldale will bolster strong relationships with our farmers today and into the future,” Koeune said.

McCain committed to regenerative agriculture in 2021, pledging that by 2030, it will only source potatoes from farms employing practices that seek to improve and revitalize soil health and quality.

Federal government statistics show that potatoes are the fifth largest primary agriculture crop in Canada, after wheat, canola, soybeans and corn.

In 2021, potato growers across Canada produced approximately 5.7 million tonnes of potatoes, with Prince Edward Island being the top potato-producing province followed closely by Manitoba and Alberta.