The growth ambitions of Agristo are impressive. The potato processor is investing $450 million in a brand-new factory and frozen storage. It will be located in the U.S. state of North Dakota. This is the second overseas venture for this Belgian family company.
This investment of approximately €436 million is in addition to the €650 million the company allocated for a flakes factory in India (where fries will also be produced in the future), a new factory in Northern France, and the expansion of processing capacity in Belgium. Agristo has not kept secret its long-standing plans for a factory in the United States. With this move, Agristo becomes the first European fries producer to venture westward.
Fertile area
The factory will be located in the town of Grand Forks, which is a 2.5-hour drive from Winnipeg, Canada. It is situated just north of the city of Fargo, where Case IH has a tractor factory, and is truly an agricultural area. Grand Forks County is part of the Red River Valley, a fertile river delta with dark humus-rich soil, located south of the Manitoba and Winnipeg lakes. The potato acreage on the American side amounts to about 30,000 hectares, placing it in the top 5 largest potato-producing regions in the country.
The location was strategically chosen not only for the good growing conditions but also for its proximity to the Canadian border. Deep-sea ports are a considerable distance away due to its central location. It is 2,400 kilometers to both the west and east coasts, which are covered by rail. To put this massive distance into perspective: It is farther than from Wielsbeke (where Agristo is based) to Kiev.
Expertise
According to Agristo, they are well represented in the American market, especially with their private label fries found in supermarkets there. They have been collaborating with growers in North Dakota for three years, testing if European varieties can thrive there. The region is considered ideal by the Belgians due to the existing cultivation knowledge. While a location in Wisconsin has been mentioned in local media, the presence of expertise and good rail connections tipped the scale in favor of North Dakota.
The construction of a fries factory and cold storage, set to begin this year, has been welcomed with enthusiasm in Grand Forks. The first fries are expected to roll off the production line in the summer of 2028. The project will create 300 to 350 jobs. Agristo did not specify the processing capacity in its announcement. Local media in Grand Forks mentioned a local senator talking about 6,000 hectares of potatoes. Other reports even mention 9,000 hectares, with a growth ambition up to 14,000 hectares by 2030. Based on this year's average production (38.1 tons/hectare), this translates to approximately 228,650 to nearly 540,000 tons of potatoes.
Competition
Agristo faces competition from other processors to secure potatoes. Cavendish Farms and J.R. Simplot are well established in the area. There is also a factory in the city operated by Red River Potatoes, producing dried potato products. Potato growers are optimistic, viewing the competition as a chance for higher contract prices.
With its rapid growth, Agristo has entered the top 5 of the world's largest fries producers. Rival Clarebout is also in this ranking, alongside American companies J.R. Simplot and Lamb Weston. At the top is the Canadian McCain. Interestingly, four of these five processors are family-owned businesses.
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