THE news that McCain -- the world's largest manufacturer of frozen chips -- is to build a new £70 million potato processing plant in the West Midlands will give Herefordshire producers a big boost.

The county is a major supplier to the chip producer and it will not only initially save them transport costs but in the longer term ensure the future of the industry in the region.

The Canadian-based company is to build the state-of-the-art factory at Rugeley and had said it would be in addition to the company's existing UK operations in Scarborough and Peterborough.

The new factory will require an extra 380,000 tonnes of potatoes from British growers -- more than six per cent of the total UK crop and taking the company's requirements in the UK to well over a million tonnes.

Grower David Powell of Yazor, said it was a big boost for the area at a time when it was unfashionable to invest in agriculture.

It showed the company had faith in the long-term production capability of producers and it would provide them with security.

McCain's chose the West Midlands over sites in Holland and France because of the quality of the British produce and the efficiency of its farmers, said Mr Powell.

He is a member of Welgro Ltd, a major Herefordshire supplier to McCain's, and comprising 20 farmers.

He said West Midlands producers had been supplying potatoes to McCain's for 25 years.

"Arable farmers were disappointed at the closure announcement of the sugar-beet factory but the McCain's development counters this."

Mr Powell said the siting of the new factory would save growers a good deal of money in transport costs.

The new development is expected to be up and running in 2004.

National Farmers' Union potato committee chairman, Graham Nichols, said: "This will give the industry a real boost after a difficult year.

"This decision is particularly important for the younger generation, on whose commitment our future depends."