The expansion of PepsiCo SA’s Isando factory in Johannesburg to produce more potato chips will not only create more than 100 jobs, but may also present a golden opportunity for potato farmers.
The new production line will cost PepsiCo R746 million and will enable the company to satisfy the growing appetite for snack foods in South Africa, as well as in the rest of Southern Africa.
PepsiCo owns Lay’s, Simba, Doritos and NikNaks. According to a statement, potato chips make up a significant part of PepsiCo’s snack production and an important part of its business.
PepsiCo operates four potato chip production lines in three different plants. According to the statement, the latest production line will significantly boost its production capacity and improve the efficiency of its supply chain.
“Expanding our potato chip production capacity is an important step in meeting the growing demand for South Africa’s beloved snack,” says Riaan Heyl, CEO of PepsiCo SA.
“Together with the new job opportunities, this new line highlights our commitment to innovation and efficiency.”
Opportunity for potato farmers
Anthony Viljoen, PepsiCo’s director of agronomy, says the new production line will also increase the company’s need for potatoes. Local suppliers will be used for this.
“Opportunities to supply more potatoes will first be offered to the farmers we already work with. New farmers will be added as needed. We are constantly trying to work with farmers to expand South Africa’s potato production areas.”
Investing in sustainability
The Isando factory is located close to important potato production areas. Its central location also eliminates the need to ship chips from its other factories in Parow and Durban, reducing its carbon footprint by saving 2.2 million km, or more than 2 300 shipments, per year.
PepsiCo has also invested in a R100 million anaerobic digestion plant at the Isando factory, in partnership with the Department of Trade, Industry and Competition.
This plant converts organic waste, such as waste potatoes and potato peelings, into biogas. The gas will be used to fuel a generator that can generate up to 780 kW, or 30% of the factory’s peak power demand.
