SA's big potato farmers sell 'controlling stake' to Canadian fund as it looks to grow

Mitolo Family Farms owns and operates 26 farms in South Australia and New South Wales.

The family business, based on the Adelaide Plains, also grows onions and is a big supplier to Australia's big supermarkets.

The Ontario Teachers' Pension Plan through its Australian agricultural arm, AustOn Corporation, have bought a majority holding as a "strategic partnership" for an undisclosed sum.

The Mitolo family retain what a statement from Ontario Teachers said was a "significant ownership stake".

The transaction does not include Mitolo Wines in McLaren Vale.

Thomas Foods International sold its potato business to the Mitolo's in 2020.

Mitolo Family Farms employ hundreds of workers in SA, many of their farms and more still at its Virginia washing and packing plants.

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The TFI acquisition included a second packing facility.

SA grows 80 per cent of the nation's potatoes with Mitolo one of the major players. Both Mitolo and TFI's potato operation are based at Virginia, to the north of Adelaide.

Mitolo Family Farms is a vertically integrated grower, harvester, packer and marketer of fresh potatoes and onions in Australia, with a portfolio representing one of Australia's largest horticultural land aggregations.

With more than 50 years of operations, Mitolo Family Farms is the category leader across potatoes and onions, supplying high quality fresh produce to major supermarkets and wholesalers nationally.

The Canadians have been big investors in Australian agriculture through pension schemes like Ontario Teachers and PSP Investments.

Ontario Teachers' has net assets of $247.2 billion.

Ontario Teachers' invests in more than 50 countries in a broad array of assets to deliver retirement income for approximately 336,000 working members and pensioners.

AustOn is the Australian agriculture arm of Ontario Teachers' and has operated in Australia since 2018.

AustOn manages Aroona Farms, which produces almonds in South Australia and Victoria, Jasper Farms, which produces avocados in Western Australia, and Pomona Valley, which produces apples and stone fruit in Victoria.

The business will continue to operate under the Mitolo Family Farms brand and under the leadership of managing director Frank Mitolo and the current executive leadership team including John Mitolo and Darren Mitolo.

"The next steps in our growth trajectory will require additional capital to enter into new markets and pursue strategies that will help us profitably respond to emerging trends in agriculture and food manufacturing," Frank Mitolo said.

"The family realised that the additional capital would require partnering with the right investor who understands the cyclical and long-term nature of agriculture, and we believe Ontario Teachers' is the ideal partner with which to take the business forward."

Ontario Teachers senior managing director (natural resources) Christopher Metrakos said the company was excited to partner with the Mitolo Family Farms to grow the company's ambitions and further increase the quality and reliability that has made it a category leader in Australia over the past 50 years.

"Ontario Teachers' and AustOn have a proven track record in investing in the farming sector both in Australia and worldwide, and we are focused on using this experience to deliver long-term, sustainable growth with Mitolo Family Farms," Mr Metrakos said.

Completion of the transaction, which is subject to regulatory approvals, is expected by June 30.

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