Whether the French fry market is down or not, the Canadian multinational remains optimistic about the long term. If all plans come to fruition, a substantial new McCain factory will be built in Peine, northern Germany, in a few years. The investment will cost around €1 billion.
A year ago, strong rumors were already circulating that the McCain family business wanted to set up shop in Germany, so reported BoerenbusinessMore than a year later, this is becoming increasingly clear, although it's not yet entirely final. The Canadians have signed a letter of intent with the Ministry of Economic Affairs in the state of Lower Saxony. They warmly welcome the arrival of the production site. Minister Tonne told local media that up to 600 jobs could be created there.
Road and water
Local residents, as always, are not thrilled. They are particularly concerned about the large number of transport movements. The town of Peine is strategically located between Hannover and Braunschweig, in an area where potato cultivation is already well-known but not very extensive. McCain has its eye on a site on the Mittelland Canal, a former coal port. This would allow transport not only via asphalt but also by waterway. In addition to a French fry factory, there are also plans for a cold storage facility. The potatoes will reportedly be sourced within a 100-kilometer radius of Peine.
A final decision has yet to be made, but local officials and the municipality are optimistic. It will be at least three years before the plant can begin operating, in 2028. The media haven't reported exactly how large the plant will be. The talk is of several hundred thousand tons.
Huge area
McCain's choice of Lower Saxony is not without reason. It has become Germany's leading potato state. According to government data, 140.100 hectares of potatoes will be cultivated there this year. That's a growth of 4,7%. This enormous area stands in stark contrast to neighboring North Rhine-Westphalia, where the area totals 47.800 hectares. Both table potatoes and starch potatoes are grown extensively in Lower Saxony. With over 8.000 hectares, seed potato production is also well represented.
Another reason for choosing northern Germany is the climate. For the past two decades, the focus has been on northern France and Belgium. The weather there is very erratic, with the possibility of long, dry periods (like this year) or extreme wetness (2023 and 2024). In northern Germany, the weather is somewhat more temperate, which is certainly a factor in the long term. Whether McCain's move will also affect the Netherlands is not yet clear. The company recently invested significantly in Lelystad, which also required more potatoes. These were largely found in the northeast, right on the border with Germany. From 2028 onwards, the potatoes might turn left or right.