Fries crisis or not, Agristo keeps building on expansion

Belgian potato processor Agristo is undeterred by the current downturn in the potato and frozen fries market. The company is simultaneously building three brand-new production facilities across three continents. New French fries production lines are currently under construction in France, India and the United States, as Agristo seeks to maintain annual growth in both potato processing volumes and finished frozen potato products.Almost three years ago, Agristo acquired a former sugar beet factory in Escaudœuvres, northern France, with plans to produce frozen fries, potato flakes and speciality products such as rösti. Construction has since progressed rapidly, according to a recent visit by regional newspaper La Voix du Nord. Only the French fries production lines and the associated cold storage facility have been postponed.Work at the site north of Cambrai is advancing steadily. The potato storage and peeling facilities have already been completed, while construction of the main processing hall is around 80% finished. From June 2027, Agristo plans to begin producing mashed potato products and specialities in Escaudœuvres, including duchess potatoes, hash browns and rösti.French fries line postponedConstruction of the building that will house the French fries production line is also underway, but the facility will remain empty for the time being. Last autumn, Agristo announced that this investment would be postponed until June 2030, while bringing forward the installation of the mashed potato production line.The company has not disclosed the impact this decision will have on the processing capacity of the new factory. However, it has stated that the site's total capacity, including frozen fries production, will eventually reach 300,000 tonnes of finished products annually. This equates to approximately 465,000 tonnes of processing potatoes, or the output of around 11,000 hectares of ware potatoes. Agristo intends to source the majority of these potatoes from local French growers.Construction of the required cold storage facility has yet to begin. The automated warehouse is designed to accommodate 40,000 pallets of finished products. Meanwhile, work is progressing on a dry goods storage facility with a similar capacity, according to the newspaper.Factory manager Sylvain Bourdon reports that construction is proceeding smoothly. More than 400 workers are involved on a daily basis, with many components arriving on site partially assembled. A major element of the project is the installation of the power supply infrastructure. Around 15 kilometres of cabling must be laid to connect the factory to the grid, which will provide the 20,000-volt supply required by the site. Installation work commenced in April.Construction in the US starts laterProgress in the United States is less advanced. At the Grand Forks site in North Dakota, groundwork for the factory began last autumn and is now nearing completion. The foundations have also been laid. Here too, the Belgian family-owned company plans to manufacture frozen fries, mashed potato products and speciality potato products.The ceremonial groundbreaking had originally been scheduled for April but has been postponed until July for practical reasons, Agristo confirmed. The company states that the project remains on schedule. The investment is valued at approximately €388 million. Once fully operational, the facility will have the capacity to produce 250,000 tonnes of finished products annually for the American market, supplying, among others, US retail customers.Agristo will be able to source potatoes from growers in the Red River Valley, the state's principal potato-growing region. Between 8,000 and 9,300 hectares of processing potatoes will be required to support initial production. Two seed potato companies in the Red River Valley have already begun investing in additional growing and grading capacity to ensure sufficient seed potato availability in the coming years.IndiaConstruction of Agristo's new French fries factory in Uttar Pradesh, northern India, is further advanced. The company opened a potato flakes facility there in 2022, and a new French fries production line is scheduled to come on stream by the end of this year. The line will have an annual production capacity of 58,000 tonnes.Agristo already works with a large network of Indian growers producing the Santana and Innovator varieties. In recent years, the company has focused heavily on improving cultivation practices and increasing yields, efforts that have proven successful. According to a promotional video released by Agristo India, average yields have increased by almost 70% to 37 tonnes per hectare through intensive grower support and improved agronomic techniques.Closer to home, developments continue at Agristo's facility in Harelbeke, Belgium. From the start of the new harvest season, a fourth French fries production line will become operational. The company describes it as incorporating the latest technology, enabling faster and more efficient production. The new line will process 25 tonnes of potatoes per hour.Expanding towards one million tonnes of finished productsAgristo is currently estimated to have the capacity to produce around 900,000 tonnes of frozen fries and other potato products annually. With the planned investments in France, the United States and India, total production capacity will exceed the symbolic threshold of one million tonnes per year—precisely the target the company has set itself. Agristo aims to increase its annual output of packaged products by 50,000 tonnes. Given these ambitions, the company is likely to become Europe's largest frozen fries producer in the near future, although its aspirations and operational footprint now extend far beyond the continent.