GRAND FORKS — A Belgian potato processing company has announced plans for a $450 million facility in Grand Forks that Mayor Brandon Bochenski calls “very exciting” and Gov. Kelly Armstrong says will improve profitability for the region’s farmers and strengthen the state’s economy.
The announcement was made Friday morning by Agristo and the city, outlining the intent to begin plans to build a potato processing facility in Grand Forks. A memorandum of understanding between the city and the company details the plans and the way forward; next, it likely will be before the City Council, probably as soon as next week, according to Bochenski.
“It’s a huge step forward,” he said. “It’s very exciting. As we look to grow, agriculture is really the key driver in our community.”
The company said it plans for approximately 300 to 350 jobs being created by the facility in Grand Forks, with a 2025 groundbreaking with the facility being operational in 2028.
“Throughout the decision-making process, we received exceptional support from local officials, farmers and residents in Grand Forks,” Agristo said in its announcement. “Their enthusiasm reinforced our belief in building not just a production site, but a hub for collaboration and growth.”
For the last three years, Agristo has worked with local potato growers to trial European potato varieties and has been in site conversations at various locations throughout the Midwest. Grand Forks was chosen due to the high quality of the potato crop, the ability for financial incentives and competitive transportation rates with the rail company BNSF, beating out a potential location in Wisconsin.
“This project will expand value-added agriculture in North Dakota, improve profitability for our potato growers and strengthen our state’s economy,” Armstrong said in a statement. “As a Top 5 potato-producing state and a leader in ag innovation, North Dakota is the ideal location for Agristo’s first processing facility in North America.”
Agristo is a family-owned business that was founded in 1986 and has potato processing facilities around the globe. The Grand Forks location would be the company’s first in the U.S.
North Dakota Agriculture Commissioner Doug Goehring believes the facility is perfect for the Red River Valley.
“Agristo recognizes our culture of hard work, integrity and innovation as a cornerstone of our communities,” he said in a statement. “The plant will be perfectly situated near the rich soils of the Red River Valley, will add value to our state’s agricultural industry and expand opportunities for our producers and the local workforce.”
City leadership said that unlike previous foreign investments — namely, the failed Fufeng corn processing mill — this investment will be more in line with the community’s business profile as well as being a company that comes from a country that’s considered an American ally.
“It’s much more complementary and something that we already have in our community,” said Grand Forks City Administrator Todd Feland. “It really builds off the existing potato industry and potato processing industry.”
Local growers were key to getting the project to Grand Forks. According to Sen. John Hoeven, R-North Dakota, this project opens even more opportunities for local growers to sell their potatoes, especially for non-irrigated land.
“This is going to create a market now for dry land potatoes,” he said. “When they talk about 15,000 acres, that’s 15,000 acres of potatoes that now will be on dry land, which formerly didn’t have a market.”
Hoeven said that this company won’t put the area at any security risk, a key issue many in Grand Forks had with the Fufeng project.
In late 2021, Fufeng announced plans to build its large corn mill along the city’s northern edge.
It was hailed as a potential boon for the region and a creator of jobs, but became embroiled in controversy due to its ties to China, its impact on the environment and impacts on nearby property owners.
In early 2023, the city backed away from the project when the U.S. Air Force declared it a
“significant threat to national security.”
“This is a Belgian, family-owned company with a long track record in Belgium,” Hoeven said of Agristo. “This really replaces (the Fufeng project) with a company that doesn’t pose security risks and it’s the right way to do it.”
The proposed site of the Fufeng project on the north end of town is one of several locations being considered for the project.
“I think that would be the most exciting site to see some development happen,” Bochenski said. “It’s probably the most infrastructure-ready, but the company is keeping their options open. That’s really high on the list.”
The nearly 340-acre site off of 27th Avenue North is still owed by the Fufeng company, according to Grand Forks property records. The company has said the land is for sale. The last time the land sold, the price was $9.5 million.
“It’s very important to (Agristo) to be good stewards of the community, give back to the community, and be a partner, so we’re very excited with that,” Bochenski said.
In the letter of intent, the company said that it looks forward to working with the city and continuing work with local farmers.
“We are eager to continue engaging with all relevant parties in North Dakota,” Agristo wrote. “We look forward to working together to make the final numbers work in the coming months and to make this investment a reality, with the goal of positively impacting local and agricultural communities in North Dakota and beyond.”
