More details have been released by Aviko BV about its new fries manufacturing operation in northeastern China, as first reported in the June 3 FrozenFoodsBiz e-newsletter and posted on this website. The joint venture operation is targeting the country’s growing quick service restaurant sector, paying special attention to the needs of local chains.
Steenderen, Holland-headquartered Aviko, a unit of Royal Consun, recently acquired a majority interest in the factory after reaching an agreement with Snow Valley Agriculture. The move ties in with Aviko’s ambition to capitalize on opportunities for further growth in the PRC.
“The processing of locally grown raw materials into fries for the Chinese market substantiates the company’s aspiration to set up a sustainable production chain in this enormous country,” stated Aviko on its corporate website. “The sale of fries in China is expected to increase substantially in the coming years.”
The factory, situated approximately 300 kilometers north of Beijing in the Chabei district, will be named Aviko-Snow Valley. The raw materials it processes originate from the local area and from Inner Mongolia. The soil type in these regions is highly suitable for large-scale potato farming. Snow Valley Agriculture’s proven expertise in the cultivation of seed potatoes and processing potatoes forms the basis for an optimal supply of raw materials to the factory.
Initially, Snow Valley focused only on the cultivation of seed potatoes and the sale of table and processing potatoes. In 2012 it built a fries factory, relying on expertise contributed by Aviko. Production started in 2013. From that moment on, Aviko has been responsible for sale of the finished products. Given the fast rise in demand for fries, the intention is to considerably expand production capacity in the near future. A potato flakes line has also been planned.
The process of upscaling requires additional potato storage capacity as well as an expansion of storage facilities for frozen potato products. The fries will be sold on the Chinese market under the brand names Aviko, Diamond, Tulip and Windmill.
Meanwhile, for the time being frozen potato specialties will continue to be exported to China from Aviko’s production plants in Europe.
