Aviko, a member of the international agro-food cooperative Royal Cosun and a global market leader in the production of potato flakes and granules, is increasing its production capacity in China by 70 per cent annually. With this expansion, Aviko strengthens its position as a global player in the potato processing industry and responds to the growing demand for potato flakes and granules in fast-growing markets such as Asia. Earlier this month, Aviko celebrated the expansion of a chip line at one of its production sites in Xilinhot, China. This tripled the plant's capacity.
Focus on Asia as a growth market
Global demand for potato products is rising sharply. This applies not only to chilled and frozen products, but also to dried ingredients such as potato flakes and granules. These vegetable-based ingredients are used worldwide in mashed potatoes, ready meals, snacks, bakery products, soups, and sauces.
From Europe, Aviko serves the global food industry, foodservice channels, and retail markets. In response to the growing demand for flakes and granules, Aviko intends to further strengthen its leading market position in the years ahead. The focus will be on sustainability, efficiency, and economies of scale. The expansion of the flakes factory in Gansu aligns perfectly with this ambition and offers ample opportunities for sustainable growth in a strategically important region.
Maarten van Delst, CEO of Aviko, says: "This expansion fits perfectly with our parent company Cosun's Unlock 30 strategy, which is aimed at building a solid earnings model, value-driven growth, and a future-proof sustainable supply chain. At Aviko, we have ambitious growth plans and are actively responding to the global increase in demand for potato flakes and granules, driven by the growing popularity of salty snacks across all five continents. In addition to Europe, China and Southeast Asia are particularly important growth markets. The plant in Gansu enables us to better serve both local and international customers and further strengthen our position in this region, with continued focus on sustainability."
Strategic cooperation
The factory in Gansu has been a joint venture between Aviko and the local government of Minle County for more than 15 years, with Aviko holding a majority stake. The site was selected due to the availability of suitable agricultural land, the favourable climate for growing flake potatoes, and well-developed infrastructure.
To support the expansion, the local government is investing in 50,000 tons of additional potato storage capacity, as well as water supply and agricultural infrastructure. These efforts play a vital role in ensuring a stable and continuous supply of potatoes.
Opportunities for the potato chain and sustainability
Aviko processes more than 2,000,000 tons of potatoes each year, sourced from growers both locally and internationally. Although the factory in Gansu uses locally grown potatoes, the increased production capacity also creates opportunities for collaboration with Dutch chain partners. Sustainability is a key focus in the expansion plans for Aviko Gansu. The new production line is expected to be operational by the end of 2027 and will contribute to more efficient and sustainable potato processing.
For more information:
Aviko
De Dommel 28
8253 PL Dronten
Tel: +31 (0) 321 328 080
[email protected]
www.avikopotato.nl
