VLAM, the Flanders Agricultural Marketing Board, took Wholesale Manager all the way to Belgium to explore the emerging trends in potato products and their foundational role in the exciting food culture across the region.
During the 3-day trip to Brussels, WM visited potato product producers who are taking significant strides in climate change adaption and mitigation, introducing innovative sustainability initiatives and adapting to meet evolving consumer demands.
Below you can read the thoughts of Jon Heylen, Commercial Director at frozen potato products supplier Agristo.
First, Gert Van Causenbroeck, Export Manager at VLAM, told Wholesale Manager how the potato products market is performing and what are the emerging trends in the potato products market.
What was the purpose of the press trip to Brussels?
The press trip is part of the European campaign to promote Belgian processed potatoes in the UK. The UK is an important market for the Belgian processed potatoes sector, and we wanted to inform a B2B market about the strengths of the sector. We have chosen to focus on the messages of quality and sustainability. The press trip was organised so journalists could talk to the Belgian companies and so we could show the efforts the sector is making on sustainability.
How is the potato products market performing?
The Belgian potato processing sector processed more than 6.2 million tons of potatoes in 2022. That’s 18 percent more than the record year 2019. “We can present brilliant growth figures as a sector, but there is a difference between growth and profitability. We were under heavy pressure in 2022 due to sharply increased costs,” said Christophe Vermeulen, CEO of Belgapom.
The potatoes are processed into fries, mashed products, potato chips, flakes and granules or pre-cooked potatoes. The largest share is for fries: a total of 2.8 million tons of frozen fries were produced in 2022. This is an increase of at least 25 percent from the previous record from 2019 and 31 per cent more than in the first corona year (2020). In addition to frozen fries, 257,345 tons of potatoes are also processed into chilled fries (+12 percent compared to 2019, +57 percent compared to 2020). The Belgian potato processing industry also produced 700,000 tons of chips, mashed potatoes, croquettes and other specialties.
Belgium continued to live up to its leading position in the export of processed potato products last year. Over three million tons or 82 percent of processed products are exported all over the world. This is 12 percent more than in 2019. The remaining 18 percent, or 608,690 tons, will be sold on the Belgian market. “This means we have come through the corona period well and that the leading position of the Belgian potato processing industry in the world has been strengthened,” Vermeulen stressed. He also sees that demand, both within and outside Europe, for processed potato products continues to rise.
What are the emerging trends in the potato products market?
Some trends the potato sector considers when developing new products:
– Health: health stays an important issue for consumers; therefore, the potato sector develops products with reduced fat, salt and additives. Also, alternative preparation methods are taken into account, such as products that can be prepared in the airfryer.
– Convenience: due to busy lifestyles, convenience stays important for consumers. The potato sector responds to this with more ready-to- eat products, like pre-cut potatoes, sweet potato croquettes and fries that can be prepared in the oven.
How big an exporter is Belgium of potato products?
Belgium is the world’s number one exporter of potato products with a volume of 3.4 million tons in 2022, which equals a value of 3.4 billion euro (Source: International Trade Centre/VLAM).
What share does Belgium have of the UK potato products market?
Belgium has a volume share of 49% in 2022 in the UK import of potato products. Its value share in 2022 was 46% (Source: International Trade Centre/VLAM).
What role do potato products play in Belgium’s food culture?
Potato products play a significant role in Belgium’s food culture and the potato is a staple ingredient in Belgian cuisine. The preparation of potato-based dishes is woven into daily life and celebration in Belgium.
Some examples:
– Fries: the most iconic Belgian food. Fries are typically thick-cut and twice-fried to achieve a crispy exterior and a soft interior. Friteries (fry stands) are popular throughout the country and enjoying a cone of frites is a cherished culinary experience.
– Stoemp: a traditional Belgian dish made with mashed potatoes and mixed with vegetables, like spinach or carrots.
– Croquettes: no Christmas dinner is complete without croquettes.
What sustainability initiatives are Belgium’s potato producers introducing to combat climate change?
A lot of effort has already been made within the potato sector in the field of the environment, climate (e.g. CO2 emissions and energy consumption), water use, zero waste strategy and biodiversity. The sector (both production and processing industry) engage themselves to contribute to the realisation of the Sustainability Development Goals, the European Green Deal and the Farm to Fork Strategy in particular to combat climate change mitigation.
Some examples:
– Eco-friendly coolant and optimalisation of the storage space to minimise the need for cooling.
– Heat recovery: the residual heat from the production and cooling processes is used to heat and cool the offices.
– Research and introduction of new varieties with better yields and less susceptible to diseases.
– Farmers are maintaining small landscape elements on their farms, such as ditch sides, woodland edges and wildflower meadows. They also utilise field boundaries or maintain the natural vegetation.
– Via smart farming, farmers receive up-to-date soil information. They receive a notification when the potatoes need water and how much, so not a drop too much is sprayed.
– The potato sector uses as much collected and stored rainwater as possible. Next to that, companies install their own wastewater treatment installation, so the purified water can be re-used.
– Producers strive to reduce the use of crop protection by applying innovative cultivation techniques like smart and precision farming (e.g. via the web application WatchITGrow). These innovations allow farmers to plant, fertilise and treat the parcels accurately, so every acre receives the perfect dosage on the right spot and none of the products and space goes to waste. Nor is there loss into creeks, streams or pods at the edge of the parcel.
– The soil is a crucial means of production for open field crops. Retaining the soil type, structure and nutrient content is essential for a sustainable production. Producers take measures both to retain the soil structure and to curb erosion.
How are Belgium’s potato producers adapting to meet evolving consumer demands?
The Belgian potato sector keeps an eye on consumer demands and tries to offer solutions when developing new products. Some ways the sector is adapting to consumer needs:
– Diversification of potato products.
– Health.
– Sustainability, e.g. sustainable packaging (using recyclable material of reducing packaging waste).
Besides potatoes, what other fruit and vegetables does Belgium export to the UK?
Belgium also exports pears (38,000 tons in 2022), apples (10,000 tons in 2022) and strawberries to the UK. Within the vegetable basket we see the largest volumes exported to the UK for tomatoes (22,000 tons in 2022), sweet peppers (4,000 tons in 2022), eggplants, leeks, courgettes and cauliflower and other cabbages.
What are VLAM’s priorities for the future?
The UK remains an important market for the Belgian potato sector. In collaboration with the companies, we will look at the communication and activities we will execute in 2024 and beyond.
Wholesale Manager also spoke to Jon Heylen, Agristo Commercial Director about what sustainability initiatives the company is introducing to combat climate change and how Belgium’s potato producers are adapting to meet evolving consumer demands.
How is the potato products market performing?
The frozen processed potato market is inherently stable and showing moderate structural growth of 4% across the UK market.
This is because:
1. Retail consumers are switching from fresh whole potatoes for convenience into processed products that are now as good or better than ‘home-made’.
2. Chefs don’t want to tie up expensive and scarce labour on manual work.
3. The improved quality, innovation and consistency of frozen processed potatoes is ensuring a gradual switch out of fresh whole potatoes into frozen processed potatoes. This applies to both retail and food service. All subsectors are holding up well in both retail and food service sectors.
It’s a stable category as it has benefits throughout the economic cycle – downturn and ‘boom’. Potato is generally the lowest cost component of every meal, making it robust in a cost-of-living crisis but part of every meal occasion so even when ‘boom’ returns it will continue to grow with a focus on premiumisation. Convenience, innovation and product consistency, as well as less volatility in pricing will ensure this market grows at the expense of fresh potatoes.
What are the emerging trends in the potato products market?
In retail we see a clearer range tiering. Most growth is in the premium tier, and ‘core plus’ and then the value tiers – leaving the ‘squeezed core’. In terms of product, it is specifically crisper products, new flavours and new potato forms and shapes.
Food service trends: coatings that hold the product crisper and for longer, and innovative new bar snack style shapes. Premiumisation is key for chefs, such as roast potatoes where the chef only needs to add his final touch to produce a home-made product. Another example is triple cooked chips, matching ‘chef made chips’ on site. Also, clean frozen mash is showing growth as this allows chefs to focus on adding value rather than low value and labour-intensive preparation. The days of Smash are long gone!
How big an exporter is Agristo of potato products?
We export our products to 144 countries – with focus on Western Europe. We have offices in the UK, Middle East and Australia – so understanding markets as well as logistics flows and export processes and documentation are embedded in our DNA.
What share does Agristo have of the UK potato products market?
We have a 26% share of the entire processed potato industry, covering both retail and food service sectors – one in every 4 chips eaten in the UK.
What role do potato products play in Belgium’s food culture?
It’s in the Belgian DNA as a core meal accompaniment. As Belgium is in an optimal climate for potatoes it is historically a staple component in the diet.
What sustainability initiatives are Agristo introducing to combat climate change?
Environmental commitment
Reduce the Agristo footprint by cutting our own carbon emissions in half and by investing in sustainable water use and in full circularity.
Social commitment
Promote health and wellbeing across all employees.
We have a huge focus to ensure we maintain and continue to be the industry leader in carbon footprint reduction and the use of green energy. We are very nearly there, but we want to ensure we have 100% circularity-zero wastage. We have several innovative energy saving campaigns in the factory and cold storage facilities e.g. fully heat exchanged, solar panels, extra thick insulation on the cold stores, use of kinetic energy on hi-bay cold stores.
Water cleaning and saving is a key driver for now and the future. Innovative savings in transport, using canals to get trucks off the road, are another key initiative. Our agronomists are heavily integrated in working groups with farmers on crop sustainability.
How are Belgium’s potato producers adapting to meet evolving consumer demands?
Firstly, we are helping farmers to meet consumers’ sustainability expectations and encouraging new varieties of potatoes with improved storage and flavour for more consistent products (reducing fertiliser and crop protection applications, as well as reducing soil compaction).
Secondly, it’s about investing in new processes to capture the consumer trends in product innovation (crisper coating, crisper for longer, new usages).
Furthermore, we invest in category management to really understand consumers’ needs and then delivering on this. And lastly, we ensure slick supply chains to feed stock through consistently.
How can retailers and wholesalers maximise sales of fruit and vegetables?
Four key rules:
– Long term strategic category plans
– Clear ‘product range ‘tiering’
– Take some risks with innovation to excite consumers
– Focus on consumer trends
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