Agristo factory costs double, opening delayed by one year

At the beginning of July, the first stone was symbolically laid of the brand-new factory that Agristo is building in Grand Forks in North Dakota. With the launch it also became known that the costs are turning out to be far higher than previously budgeted. The Belgian family business is even speaking of more than a doubling. It will also take a long time before the French fry lines can run. Not 2028, but autumn 2029 is now the forecast. Grand Forks is very happy that Agristo, one of the largest potato processors in the world, is settling in their city. Located in the middle of the Red River Valley, one of the most important potato growing regions in the United States. Alongside Agristo COO Kristof Wallaeys stood, among others, the mayor, governor and the purchasing director of supermarket chain Walmart with a shovel in hand. Costs doubled In earlier reporting a cost estimate of $450 million was still assumed. Meanwhile that has been adjusted to an amount of about $1 billion, Wallaeys tells local media. That is equivalent to €874.5 million. The start has also been delayed. Not in the autumn of 2028, but that of 2029, the first potatoes will be cut into fries, that is now the plan. Ward Claerbout, director corporate affairs of Agristo confirms the news to business newspaper De Tijd, but does not want to speak of a delay of a year. He points out that external factors can always influence the timeline. According to him the difficult market situation in Europe has nothing to do with the delay. The doubling of the costs is related to increased construction costs and the investments in the very latest technology. 275,000 tonnes The future factory site covers 142 hectares, where in three years 275,000 tonnes of processing potatoes can be turned into fries, waffles, hashbrowns and other potato specialties. The company supplies these to the foodservice and fast food sector. Walmart is the largest customer. An estimated fifty growers on more than 8,000 hectares will soon grow the potatoes for Agristo. An extra year of space offers the advantage that they have time to build storage and have sufficient starting material available. The multiplication of the required potato varieties has already been started. Agristo is going to have starting material and potatoes grown by growers with a 'European approach'.