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Datenbank der Projekte zur ländlichen Entwicklung

German Potatoes Processing Company Invests in Modern Storage Facility

Summary

The potatoes processing and trading company Kartoffelaufbereitungs und Handels GbR contributed to enhance the quality and the value of local potatoes production by building a modern storage unit in order to meet the market demand.

Background

The region of Magdeburger Börde is well-known for the most fertile soils in Germany and the quality of its potatoes production. Kartoffelaufbereitungs und Handels GbR is a potatoes processing and trading company operating in the areas which aims to ensure best quality potatoes are delivered to German households. The company buys potatoes from the farmers in the region, sorts, packs and stores them before selling to distributors and contract packagers.

Objective

Before launching the project the company had to rent extra storage capacity. As a result it had to cope with logistic challenges due to the distances between the storage units and an unsteady quality of the product due to suboptimal storing conditions. The project’s objective was to increase the company's competitiveness by reducing costs on the one hand and increasing the product's quality on the other hand, ensuring that optimal conditions are maintained throughout the working process.

Main activities

Thanks to EAFRD contribution, the existing warehouse was extended by building a 24 m long new storage unit. This meant that the storage capacity made available at the location of Brumby, the company premises, was increased by additional 1 850 t, or a total capacity of 8 500 t. The new warehouse was also equipped with modern ventilation system which ensures a constant temperature of four to five degrees for the stored potatoes until the moment they are sold.

Results & Benefits

Direct results and benefits were: the improvement of the quality of the products and a reduction of storage and transport costs, which turned out to be an additional positive environmental outcome. The company can now access their potatoes when and how it is needed without the constraint of relying on agreements with an external contractor. Ultimately, the investment contributed to stabilise the firm’s income through enhancing its capacity to respond to market demand and price fluctuations.

Lessons learnt

Thanks to the EAFRD support not only the company gained in competitiveness but the whole supply-chain. The project improved the perception of the Kartoffelaufbereitungs und Handels GbR as a business partner for farmers as well as distributors.

Project location and other information

Nordgermersleben, Börde

Region

Sachsen-Anhalt

RDP Territory

Saxony-Anhalt

Total project cost (€)

536 470

EAFRD contribution (€)

100 587

National contribution (€)

20 117

Private contribution (€)

402 350

Other funding sources (€)

13 411

Contact name

Constanze Elz

Languages for contact

German

At a glance

Country

Germany

Final beneficiary type

Non-farm or non-forest entreprises

Budget range

> €500 000

Start date:

22/04/2009

End Date:

28/08/2010

Theme / Measure:

• Competitiveness of Agriculture & Forestry
• Restructuring, developing physical potential, and promoting innovation
• 123. Adding value to agricultural and forestry products

Keywords:

Agri-food industry, Competitiveness , Vegetable, Modernisation

Last update

28/11/2013