The Canadian potato processor McCain plans to build a new factory in Germany for processing, among other things, french fries potatoes. At least that's what various sources within the sector say. It could mean a remarkable move breaking away from the focus on Belgium and Northern France of the European processing industry.
In addition to potato processors for starch and chip potatoes, Germany has several french fry producers. Agrarfrost and Wernsing are well-known names. In the Bavarian town of Rain, Aviko also has a factory. It is possible that multinational McCain will be the first North American potato processor to build a factory in Germany. The rumors within the potato sector are becoming clearer.
Central location
According to insiders, the city of Peine has been designated as the location. It is roughly located in the triangle between Hannover (to the west), Braunschweig, and Wolfsburg. This location sounds logical, Peine is strategically located. The accessibility via highways to the west, east, and north is excellent. In addition, the Mittelland Canal runs past the city, allowing goods to be transported by ship.
Potato cultivation is certainly not unfamiliar to the region. Many consumption potatoes are already grown there. Further to the west and north, there are also starch potatoes. A stone's throw away is the potato trading company Groka, which collaborates with, among others, Raiffeissen and Weuthen. Groko trades, among other things, table and french fry potatoes, as well as seed potatoes. The state of Lower Saxony has already designated itself as 'Kartoffelland' (Potato Land), and that's not surprising. Almost half of all potatoes come from here. In 2023, the area was 120,500 hectares.
Fourth producer
The German potato industry operates somewhat in the shadow of European potato processing. Among the EU-4 plus Poland, it is the number four in terms of export volume. In 2023, 475,000 tons of french fries were produced. This is 2.6% less than in 2022. This production generated a turnover of €440 million.
If the rumors come true, this step could mark a turning point in Northern European potato production. The focus of many processors, especially the Belgian ones, is largely on Northern France. This is not surprising, as it has now become the backyard of these companies. Clarebout has just built a brand new factory there, Ecofrost is under construction, and Agristo has already purchased a site. McCain is also well represented here with three factories. It is also expanding the capacity.
Two advantages
For several reasons, a move to Germany is a good move. The competition among Belgian and French growers is fierce for the factories. Construction plans are also being stretched there. In addition, there is the climatic risk. The ideal growing conditions are gradually shifting more towards the north of Europe. A warm and dry weather is unfavorable for potato cultivation, especially when irrigation is not possible.
McCain started almost sixty years ago in Europe and built its first European factory in 1968 in Scarborough, England. In 1973, the company acquired a factory in Lewedorp, Zeeland. In Germany, it has a sales office in Eschborn, near Frankfurt am Main.
Progress
Peine is about 700 kilometers north and generally has a milder growing season. Ideal for potatoes. Moreover, there is still room to expand cultivation to the north, towards Kiel. It will take a few more years before this happens. The first potato growers have reportedly been approached to grow french fry potatoes for McCain. Probably, a stable production will first be built up for several years before actual processing can begin. McCain is not the only non-German processor to approach it this way.
McCain has been asked to comment on this article. This has not been used.
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