Aviko wants to grow in China, but changes course

Potato processor Aviko ends its collaboration with Snow Valley Agriculture, as a result of which Aviko has 1 less factory in China. But Peter Dekker, commercial director at Aviko, emphasizes that the growth ambitions in China are no less.

The joint venture between Aviko and Snow Valley will expire if the Chinese authorities approve the termination agreement. Dekker explains the decision.

What exactly is going on in China?
“Aviko had a 51% share of the chips factory in China, while Snow Valley owned the other 49%. Since Aviko's view (on the growth strategy in the Chinese market) differs too much from Snow Valley's, we have agreement, in which Snow Valley will take over Aviko's share package."

What does this mean for your growth strategy in China?
"Aviko invested in this factory together with Snow Valley in 2014, mainly to be able to grow in China. The fact that we are closing this factory does not mean that our growth ambitions in China have been reduced. On the contrary, the consumption of frozen chips in China there is about 300 grams per person and there are considerable growth opportunities there, because in the Netherlands we sit at 12 kilos per person."

How do you shape that growth strategy?
"We have our own commercial organization in the country. We also have another flake factory in China. Our strategy is to continue to supply a total package to the approximately 1.000 customers we have in the country."

The fact that there is 1 factory less means that you will process the potatoes elsewhere?
"In the short term, the potato products will indeed not be processed in China. The product will go to China via one of our factories in Europe. In the long term, we do want to supplement this with locally processed product. Coming to a factory in China is therefore in line with expectations."

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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