The American Simplot will start construction of a French fries factory in Mendoza, Argentina in a month. The company expects to derive 70% of its turnover from exports to countries in South America...
The factory, which is scheduled to start operating in 2018, focuses its production mainly on the foreign market. The company's ambition is to have 120.000 tons of processed product roll off the production line every year. This amounts to a raw material requirement of approximately 4.000 hectares, reports Potato Business.
Cultivation project of 1.500 hectares
The potatoes will largely be supplied by San Fili. This is also the owner and shareholder of the factory. More than 10 years ago, San Fili started developing a cultivation project of 1.500 hectares under pivot irrigation.
South America largest export market
In addition to frozen fries, the factory will also produce mashed potatoes. Simplot expects a turnover of $1.8 billion, of which 70% will come from exports to countries in South America, mainly Brazil, Uruguay and Chile. Given the anti-dumping tax of Brazil on Western European fries, the plans in Argentina also appear to be a tactical move. In addition, Farm Frites, which has been doing business in Argentina since the mid-90s, also has plans for one new production location there.