Canadian potato processor McCain has plans to build a new factory in Germany for processing, among other things, French fries potatoes. At least that is what several sources within the sector say. It could be a remarkable move that breaks away from the focus on Belgium and Northern France of the European manufacturing industry.
In addition to potato processors for starch and potato chips, Germany has several French fries producers. Agrarfrost and Wernsing are well-known names. Aviko also has a factory in Rain, Bavaria. It is possible that multinational McCain will be the first North American potato processor to build a factory in Germany. Voices about this are becoming increasingly clear within the potato sector.
Central location
According to insiders, the city of Peine has been designated as the location. This is roughly located in the triangle between Hannover (in the west), Braunschweig and Wolfsburg. This location sounds logical, Peine is strategically located. Access via highways to the west, east and north is excellent. In addition, the Mittelland Canal runs past the city, allowing goods to be delivered and delivered by ship.
Potato cultivation is certainly no stranger to the region. Many consumption potatoes are already being grown. Further west and north also starch potatoes. A stone's throw away is the potato trading company Groka, which collaborates with Raiffeissen and Weuthen, among others. Groko trades table potatoes and French fries, as well as seed potatoes. The state of Lower Saxony has already labeled itself 'Kartoffelland' and that is not surprising. Almost half of all potatoes come from here. In 2023 the area amounted to 120.500 hectares
Fourth producer
The German potato industry operates somewhat in the shadow of European potato processing. Of the EU-4 plus Poland, it is number four in terms of export volume. In 2023, 475.000 tons of fries were produced. That is 2,6% less than was processed in 2022. This production represents a turnover of €440 million.
If the rumors come true, this step could mean a turnaround in Northern European potato production. The focus of many processors, especially Belgian ones, is largely focused on Northern France. That is not surprising, because it has now become the backyard of these companies. Clarebout has just built a brand new factory, Ecofrost is under construction and Agristo has already purchased a site. McCain is very well represented here with three factories. Of these it expands the capacity also out.
Two advantages
A move to Germany is a good move for several reasons. Competition among Belgian and French growers is fierce for the factories. Construction plans are now being expanded there as well. In addition, there is the climatic risk. The ideal growing conditions are gradually shifting towards the north of Europe. Warm and dry weather is unfavorable for potato cultivation, especially when irrigation is not possible.
McCain started in Europe almost sixty years ago and built its first European factory in 1968, in Scarborough, England. In 1973 the company bought a factory in Lewedorp, Zeeland. In Germany it has a sales office in Eschborn, near Frankfurt am Main.
Course
Peine is located about 700 kilometers north and has on average a more temperate growing season. Ideal for potatoes. Moreover, there is still room to expand cultivation north, towards Kiel. It will be a number of years before that happens. The first potato growers have reportedly already been contacted to grow chip potatoes for McCain. Stable production will probably be built up for several years before processing can actually begin. This means that it is not the only non-German processor that approaches this this way.
McCain has been asked to comment on this article. This has not been used.