Last year, the Belgian potato processing sector processed 6.2+ million tons of potatoes. It, thus, broke its 2019 record by a whopping 18%. Employment in the industry is rising accordingly, with the 6,000-employee mark in sight.
Christophe Vermeulen, CEO of Belgapom, Belgium's potato industry and trade federation: "These figures testify to our sector's resilience, flexibility, and strength. The difficult pandemic years have been dealt with, and the potato sector has strengthened its internationally leading position."
"That's despite a couple of summers of extreme weather and, thus, difficult harvests. Belgium is the land of potatoes, with French fries as king. This sector, therefore, also confirms its social and socio-economic importance in times when agriculture is under constant fire," says Christophe.
The numbers speak for themselves. In 2022:
- More than 6.2 million tons of potatoes were processed into fries, purees, chips, flakes, granules, and pre-cooked products.
- That includes 2.8 million tons of frozen fries, 25% more than the 2019 record year and 31% more than in the first pandemic year, 2020.
- And 257,345 tons of chilled fries, also a record, at 12% more than in 2019 and 57% more than in 2020.
- Chips, purees, croquettes, and other specialties: 700,000 tons.
- The sector employs 5,912 people. That is 41% up from 2020 (a year with a solid decline) but also, more importantly, 18% more than in 2019.
- Business investments: €300+ million.
- Destined for (global) export: 3.022,473 tons or 82% of production, 12% more than in 2019.
- Remaining in Belgium: 608,690 tons or 18% of production.
"Our sector can present glowing growth figures of which we can be proud. But there's a difference between growth and profitability. That was under heavy pressure in 2022. The Ukraine war caused a sunflower oil shortage and exorbitant prices for the alternatives. Making frozen fries is also extremely energy-intensive, so those orders, too, had to be slashed."
"Plus, other raw materials and packaging costs skyrocketed. Thus, aside from record processing and turnover, costs reached record heights too. The sector spent more than €750 billion (!) on oil, energy, and packaging alone. Add to that the increased cost of the potatoes themselves and wage adjustments, and it becomes clear that not all that glitters is gold," Christoph adds.
"It's too soon to make predictions for 2023. Exports are going well, and local consumption is holding up. Extreme energy and transportation costs seem to be a thing of the past for now. Inflation remains a concern, despite forecasts pointing to stabilization. There are also problems finding personnel."
"Ambitious, growing companies need good people with the right skills, but they're hard to find. New taxes, like the litter tax, increasingly burden the processing industry. The sector's main headache, however, concerns its raw material, Belgian potatoes," says Vermeulen.
"The way agriculture's changing is of grave concern. We want a sustainable sector with investment security and perspective for both growers and the agro-food industry. We strongly believe in the sector's innovative strength. We believe in cooperating with all players, which we proved during the negotiations of fertilizer action plans. The dossiers are piling up: nitrogen, MAP, erosion legislation, nature restoration law, phasing out of crop protection, the water issue, and on and on."
"That affects agriculture and, therefore, our sector enormously. Where, in five years, can and may we still grow potatoes? We hope that, like in other European countries, our policymakers will finally come to their food industry's crown jewel's defense. That's a given in France, Spain, and Italy. Here, however, there's silence, and we don't know why," Christoph concludes.
For more information:
Christophe Vermeulen
Belgapom
3 Sint-Annaplein
9290, Berlare, Belgium
Tel: +32 (0) 933 91 249
Email: [email protected]
Website: www.belgapom.be