How Belgium grew into a giant in potato processing
Although Belgium is "only" fifth in Europe in terms of potato production, it has grown in a few decades to become the largest exporter of processed potato products in the world.
Processing capacity has increased more than tenfold in that period to 6 million tons of potatoes per year. The turnover of the sector is estimated at around 5 billion euros and the number of jobs at 6,000.
The economic centre of gravity of the Belgian potato processing industry lies in Flanders, with global players such as Agristo and Clarebout. Both companies have been recording very strong operating results for a number of years, which is reflected in their considerable investments. In doing so, the companies are looking beyond Flanders, where business expansion is sometimes difficult due to a shortage of industrial land and labour. Countries such as India, Northern France and the US are now also on their radar, due to their large potato areas, good infrastructure and growing domestic markets.
Just like potato producers, the processing industry is also struggling with sharply increased production costs. The sector is energy-intensive, resulting in high energy costs, on top of the already increased wage and packaging costs. In addition, the threat of possible trade tariffs from the US is causing additional uncertainty in the sector.
Assets: well-organised sector
The flourishing of the Belgian potato sector is due to the ideal soil composition and the favourable climate, although both are currently under pressure. Knowledge, innovation, quality control, traceability, flexibility, good infrastructure, chain cooperation and good service provided the rest. The sector, which has now become high-tech and therefore capital-intensive, can also count on a well-developed supply industry with specialised machinery for cultivation, harvesting, storage, processing and packaging.
The Belgian potato sector is well organised and receives support from various research centres. Belpotato.be is the umbrella organisation for the entire potato chain in Belgium, while FIWAP is the Walloon equivalent. Belgapom represents the specific interests of the Belgian potato trade and processing. In terms of knowledge and research, the sector is supported by Viaverda (the East Flemish practical centre for agriculture and horticulture, specialised in potato cultivation), VEG-i-TEC (the new research centre for the potato (and vegetable) processing industry of Ghent University in Kortrijk), the Proefcentrum voor Aardappelteelt, Inagro and the Centre Wallon de Recherches Agronomiques.
A clear and concrete example of the good cooperation throughout the chain is the ’Code of Good Contractual Practices in the Potato Sector’. The code promotes transparent trade relations between potato growers and buyers.
Fuente: agroberichtenbuitenland.nl
