Flake production benefits

Aviko doubles French fries production in China

6 February 2018 - Niels van der Boom - 1 reaction

The production level of Aviko's chips factory in Chabei, China, is more than doubled with the arrival of a new processing line. The potato processor from Steenderen (Gelderland) will announce this on Friday 2 February. The reason for the growth is a rising demand for French fries in the world's most populous country.

With the new processing line, the production capacity will be more than 100.000 tons of chips per year. In addition to the increase in the production of chips, the volume of flakes is also increasing. This is because this is a residual flow from the French fries production. For this, the company has a separate factory in Gansu province. It has been operational since 2006.

Prosperity is rising and with it the consumption of fries also rises

The reason for the increase in production is the enormous interest in French fries in China. Aviko Potato wants to take maximum advantage of this, says director Dick Zelhorst. "Prosperity is increasing, especially on the east coast, and western eating habits are emerging."

Raw material requirement
According to Zelhorst, a capacity expansion involves more than just installing new machines. "In China, the supply of raw materials is the most critical factor. You cannot achieve this on your own as a foreign party. The cultivation is therefore supervised together with our local partner Snow Valley Agriculture. We have a joint venture with this company to operate the factory. "

In addition to chips, Chinese consumers are also increasingly interested in other potato products, according to the processor. "At the moment it doesn't pay to produce them locally. That's why we export them from Europe. In the long run, local production is certainly an option," says Zelhorst. These are specialties such as potato croquettes, rösti and potato slices.

Growth ambition
In 2012, Snow Valley built a chip factory near the city of Zhangjiakou in Inner Mongolia, 100 kilometers north of Beijing. Aviko delivered the necessary knowledge. Production started in 2013, with Aviko taking over the sales. It also has a majority stake in Snow Valley, which has traditionally focused on seed potato cultivation. In its own words, Aviko is the first European fries maker to set foot in China. McCain and Simplot were already active there. Shortly after Aviko, Farm Frites followed with a factory in the same region.

In 2015, the company expressed its ambition to process 100.000 tons of potatoes, good for around 53.000 tons of chips. For the longer term, a target of 200.000 tons has been set, which corresponds to 106.000 tons of chips. It has reached that limit after 4 years. The Chinese chips market is growing at an annual rate of 8% to 12%, the processor says.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
1 reaction
cart toffel 6 February 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/aardappelen/ artikel/10877469/aviko-doubling-fritesproduction-in-china][/url]
Thank you Aviko, there will soon be chips from China in our supermarkets.
Bas 7 February 2018
How about that again, if you teach a monkey to ride a bike then .......
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