French sugar beet and starch potato processor Tereos is positive about the current campaign in the country. However, drought has had a significant negative impact on yield. This means that the company is short of 130.000 tons of potatoes. A plan has been drawn up to structurally close this gap in the coming years.
With an average yield of 40 tons per hectare, the result of the 2019 harvest is still 1 ton above the dramatically poor 2018. The 5-year average is 48 tons. A total volume of 370.000 tons is not sufficient to cover the processing lines tereos in Haussimont, south of Reims. This requires a volume of 500.000 tons.
Two factories
The potatoes are grown within a radius of 140 kilometers around the factory. Mainly in the Champagne region, around the Seine and Marne and the Picardy department. Tereos produces 40% of the total French starch harvest in Haussimont. Competitor Roquette also has a factory near Amiens. These are the only 2 places where starch potatoes are processed. In addition to potatoes, Tereos is best known as a sugar producer. It also processes alfalfa.
Expansion plans
The campaign at Tereos started on September 9 and will last until mid-February. The company would like to have more starch because the European market for it is booming. Not only in the food industry, but also as a raw material for cardboard and plastic bags. The non-food segment now accounts for 20% of the decrease. Tereos pumped €30 million into expanding their production capacity, which should increase by 3% per year. Since 2014, production has increased by 10%.
To combat drought damage, the French are focusing on new varieties that are more tolerant in this area. Disease resistance is also being looked at. An advantage of the dry year is the particularly low phytophthora pressure. The disappearance of CIPC is also a concern for starch potatoes. Tereos is therefore conducting tests with MH for long-term storage. New varieties must also contribute to this. Starch potato growers are asked to invest more in (long-term) storage so that production can increase.
Single bright spot
Tereos is not alone in his ambition to want sustainable in the vegetable starch market. This sound comes from France, but our competitors in the Netherlands and Germany are also not sitting still. It is a bright spot for the French company. Things are going a lot less well at their sugar branch. For example, it intends to close 2 beet factories, against which there are fierce protests. The company has enormous debts, which means it has been within the ranks for longer rumbles.