West Australian potato growers facing the loss of the only crisp manufacturer in the state could have a new opportunity in hot chip vending machines. Listen Duration: 3 minutes 29 seconds 3 m 29 s Listen Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Steve Bendotti says hot chip vending machines are a new wholesale market for growers ( Bridget Fitzgerald ) Download 1.6 MB

The machines will be built in the Perth suburb of Wangara and will be supplied with chips from a potato chip processor in Manjimup, in the south west of the state.

After more than five years of planning, construction on these hot chip vending machines will begin in the next 30 days and should be established in eight locations in Perth by the end of June.

The machines were tested in Perth and Adelaide and according to the creators can take the potato from frozen, to fryer and into the cup within two minutes and 20 seconds.

Manufacturers say these machines have the potential to create a significant wholesale market for potato growers, which is particularly pertinent as growers face the closure of a major crisps processor.

Smith's Snackfood Company announced last year that it would close its doors on its Canning Vale crisp manufacturing plant.

Approximately a dozen potato growers supply 12,000 tonnes of potatoes to the factory, which is worth about $5 million to growers.

Manjimup potato grower and hot chip processor Stephen Bendotti has the contract to supply the product to the vending machine manufacturer, the Hot Chips Company.

Mr Bendotti already sources potatoes from farmers around the south-west region for his processing company Bendotti Exporters and he said his company will lose 20 per cent of its business when Smith's Snackfood closes.

But he said he estimated the vending machines could treble production at his processing facility and create a new market for growers.

"The closure of Smith's Snackfoods is equivalent to around 6,000 tonnes in this area," he said.

"So the long-term plan is to try and absorb that 6,000 tonnes [in] three to four years."

Mr Bendotti said his family would supply the initial extra potato product, before taking on more grower contracts.

Venture could ease deregulation pain

The launch of these hot chip vending machines comes as potato growers prepare for deregulation.

Hot Chips Company CEO Peter Malone said he believed his vending machines have "come at a good time" for growers preparing for deregulation.

Mr Malone said he believed his company could play a role in supporting some growers.

"We'd probably increase turnover [at the Bendotti factory] by a factor of three, within the next few years," he said.

"Of course that requires a significant potato demand than what is there at the moment."

Mr Malone said Bendotti Exporters had already embarked on a research and development program to work on a new potato variety designed for the hot chip machines.

He said he would also look to relocate parts of the Perth-based business to the south-west potato growing region.

"We think it could involve in relocating special labs to [the Bendotti facility]," he said.

"To assist in the production of the right type of chips for our machine."