Private equity firm KKR & Co has invested about $US100 million ($119 million) in Sundrop Farms Holding – an agricultural technology company – which plans to use solar panels and sea water to grow vegetables in South Australia.
The 20 hectare expansion of Sundrop Farms’ greenhouse business at Port Augusta was announced in Adelaide last week by the Premier of South Australia, The Hon. Jay Weatherill MP, Sundrop Farms CEO Philipp Saumweber and Coles Managing Director John Durkan.
“This agreement represents a significant milestone for Sundrop Farms, giving us the confidence to proceed with the Port Augusta project. Importantly, the Coles partnership allows Sundrop Farms to make a long-term commitment to regional South Australia,” said Mr Saumweber.
“By entering into a 10-year deal to buy Australian-grown tomatoes from Sundrop Farms, we are supporting an enterprise which is redefining sustainable agriculture in Australia. This is the first time we have signed a contract of this length for Australian-grown fresh produce,” Mr Durkan said.
According to the media release by Premier Jay Weatherill and Minister for Regional Development and Local Government Geoff Brock, the State Government of SA had committed $6 million from the Regional Development Fund towards the expansion, which would create at least 100 jobs during construction and about 200 in operation at the plant in around the Upper Spencer Gulf region.
“The partnership between Government, Sundrop Farms, KKR and Coles to deliver this remarkable expansion will provide a significant boost to Port Augusta and the surrounding region. We have identified premium food grown in a clean environment as a key economic priority for South Australia and this project is the perfect example of the benefits that can bring,” Mr Weatherill said.
“This is also a great example of the benefits of attracting inbound foreign investment and the contract from Coles – to purchase Sundrop Farms’ truss tomatoes for 10 years and sell them across the country – was vital in securing that financing.”
Sundrop’s environmentally sustainable technology drew the attention of US-based KKR which has also made an investment in sustainable farming through its stake in Santanol, a company which owns sandalwood plantations in Australia.
“This project is the first in SA to integrate, at a commercial scale, leading technologies across solar thermal energy, solar seawater desalination and freshwater neutrality across 20 hectares of energy efficient greenhouses,” the Premier said.
“The project will boost regional employment and boost investment in the region. It is a tremendous vote of confidence in regional South Australia that global company Sundrop Farms has based its cutting-edge operations here, exploring leading edge future focused technologies for horticulture industries in arid climates,” Mr Brock said.
 in Sundrop Farms Holding – an agricultural technology company – which plans to use solar panels and sea water to grow vegetables in South Australia.){kind=link}