ABV Food Processing, a subsidiary of the Galati Group, has been penalized with a $20,000 fine for operating an unauthorized potato chip manufacturing facility in Western Australia’s South West region.
The facility’s planned “grand opening” in April 2024 raised red flags for regulatory authorities.
The Galati Group, led by the well-known “Spud King” Tony Galati, faced legal repercussions for establishing the chip factory without the necessary licenses, in violation of the Environmental Protection Act during the years 2023 and 2024. This factory, producing chips under the Spuddies brand, is located in Myalup, approximately 140 kilometers south of Perth.
Additionally, the company confessed to illegally disposing of non-oily waste generated by the chip production at the site.
During proceedings at the Bunbury Magistrates Court, Magistrate Stephen Butcher handed down the $20,000 fine to ABV Food Processing, a company owned by the Galati Group.
“The company had received multiple notifications regarding this issue and was clearly aware of it,” Magistrate Butcher stated. “They were supported by professionals and operate on a significant scale.”
Authorities were alerted to the facility’s intended opening when the Galati Group launched its Spuddies brand in April 2024, which was subsequently sold at Spudshed outlets statewide.
In court, it was revealed that a representative from Western Australia’s Department of Water and Environmental Regulation (DWER) had been informed about the factory’s projected opening in February 2024. The following day, the DWER contacted the Galati Group, warning them that initiating any operations would be considered illegal. It remains uncertain whether the Galati Group responded to this warning.
Despite lacking the required approvals, the Galati Group proceeded to install equipment for the chip processing plant between November 2023 and April 2024, including an industrial peeler, blancher, fryer, conveyor belt, and a precise partitioning and bagging system.
In June 2024, a DWER officer reached out to Galati Group CEO Frankie Galati to request access to the Myalup site for meter readings. Mr. Galati replied that chip production had already commenced at the facility. The DWER then reminded the company of the need for proper licenses, to which there was no reply.
In November, the department received an application for the necessary works, but this was withdrawn in May, a year after chip production had already started.
Prosecutor Rosanna Panetta contended that a fine was insufficient given the Galati Group’s knowing violations and lack of cooperation with the DWER. “The regulations are explicit that one must not operate a facility until the appropriate licenses have been granted,” Ms. Panetta asserted in court.
However, Galati Group attorney Paul McQueen argued that the company should not be held accountable for delays or lack of responses from contractors.
Magistrate Butcher disagreed, emphasizing that the business, being sophisticated and well-resourced, should meet higher standards due to its scale of operations. “The numerous notifications indicate that the company had no valid reason to assume it did not require works approval,” he remarked.
While Magistrate Butcher categorized the violations as low to mid-range, he noted that the illegal disposal of waste fell into the lower range, as there was no significant environmental harm caused.
A formal application for the factory has now been submitted for review. Tony Galati, a prominent figure in the Western Australian potato industry, has a history of involvement in disputes with the now-defunct Potato Marketing Corporation, even facing contempt of court charges during those conflicts.
