Scarecrow Foods opens $7m 'crop to shop' popcorn factory on the Darling Downs

Toowoomba-based Scarecrow Foods started production of its microwavable PopBox in December, but it didn't take long to make its way onto the shelves of IGAs, convenience stores and service stations in Queensland's smaller communities.

Scarecrow Foods CEO Mark Adamson said the response to the snack had been fantastic.

"We've got about 50 retailers from Dalby, Chinchilla, Miles and Quilpie in the west, to Kingaroy in the north, and Texas in the south, so it's been a nice start after a couple of years of planning and designing," Mr Adamson said.

The 960sq m facility is equipped with food processing and packaging technology seen in many modern facilities, but what sets it apart is the way it's made.

While many supermarket popcorn products are packaged in plastic and use palm oil, Mr Adamson said they were adamant on making a recyclable and ethical product.

"Traditionally, a lot of manufacturers are using palm oil. We particularly didn't want to use palm oil and we know the Australian market has a preference for non-palm oil," he said.

Scarecrow sources its vegetable oil, which is a mix of sunflower, canola and coconut oils depending on seasonal variability, from Graincorp.

Compared to the usual fare at the service station or middle aisles of the supermarket, it was also a healthier option, Mr Adamson said.

"It's a convenient replacement for chips or hot chips in a better for you-type of snack environment."

The company sources all of its popping corn from Bean Growers Australia in Kingaroy, which has contracts with growers in the Burdekin, Wide Bay, and further south in NSW and Victoria.

Mr Adamson, who is also BGA chairman, said the business synergy and having a reliable supply of corn was key to success.

"Because BGA has been a really major supplier of popping corn for the Australian market for almost three decades, we obviously had an understanding of the size of the market and it took one of the risks of the operation completely away."

As with any manufacturing though, it's not without its supply challenges.

"We were getting really fantastic results from popcorn in the Wide Bay area on the coast, but popcorn hasn't been easy in the last few years," he said.

"We came out of the drought and then we had fall armyworm and it took growers a while to learn how to manage that."

While BGA provided some capital and expertise, Scarecrow is owned by a group of 20 Australian investors - many of them locals.

"We had a large number of small, sophisticated investors - from tradies and professionals to a large local farmer - so where we could get them locally was great."

The company will now focus on growing in the southeast corner before setting its sights on the southern states and national retailers.

"It's a high speed plant set up for relative scale, so we've got an opportunity for expansion over time."

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