Just before New Year's Eve, a few weeks ago, Clarebout Potatoes published its annual figures for 2022. For the first time in history, a Belgian potato processor has passed the €1 billion turnover mark. To be precise, Clarebout Potatoes' turnover in 2022 will be almost €1,1 billion, more than 60% higher than in 2021.
The significantly higher turnover in combination with the less significant increase in costs gave Clarebout Potatoes a mega profit of more than €125 million. A financial year earlier (2021), a loss of €600.000 was made due to the corona crisis. Clarebout reportedly saw its turnover grow so strongly in 2022 because, due to inflation, consumers started eating more cheaper fries from private labels, in which Clarebout is strong, versus fries from the well-known brands.
High chip prices boost sales
The further increase in the market price of the end product, especially in the last two years, has not done the processor any harm, despite the high energy prices. The 2022 profit has already been invested in a new factory near Dunkirk and the acquisition of industry peer Mydibel in 2023, which will grow turnover by €300 million.
The other two Belgian-owned potato processors are also experiencing significant growth. In terms of turnover, Agristo is approaching €2022 billion in turnover (€1 million) in 959. The final profit was set at €76 million. Agristo outperformed Clarebout in terms of profit margin in 2021 by almost €10 million. Agristo apparently managed to avoid the corona horde better. Ecofrost, the third player in terms of turnover, made less than €2022 million profit in 2 based on a turnover of just €200 million. However, gold (read: beautifully fried chips) is also seen there in the near future and land has been purchased in Northern France to further invest in a new factory with a capacity of 200.000 tons of frozen end product and puree.
Friendly investment climate in France
Just like Ecofrost, the other Belgian processors have also expanded their field of work to Northern France, where apparently the business climate under the Macron government is such that significant investments can be made. The raw material factor is also very important. To realize the ambition in Belgium to increase the processing volume above 6 million tons, you need potatoes. Considering the area in Belgium and the further possibilities regarding cultivation in that country, the maximum has been reached.
Another important point in realizing the growth ambitions is the seed potato supply, which is increasingly threatened. Further increasing contract prices in the EU-4 countries actually brings the problem closer. After all, the consumption potato market competes with seed potato cultivation. So in that sense it may be that the snake is eating its own tail.