Ukraine’s first industrial french fries plant to revolutionise domestic supply chain

Potato Agro, led by founder and former MP Serhii Tereshchuk, has commenced construction on a pioneering $110 million French fries production facility in the Biosens industrial park.

The large-scale plant, set to be Ukraine’s first, is a major industrial venture aimed at substituting the country’s current reliance on imported frozen fries and establishing a high-volume supply source for major quick-service restaurants and retailers across the region.

The facility will boast an annual production capacity of up to 60,000 tonnes of French fries, significantly exceeding Ukraine’s existing annual consumption of 20,000 tonnes. This capacity immediately signals ambitions for domestic market dominance and potential export capacity into Eastern European markets.

Construction began in July 2025, with wall erection scheduled for the autumn. The project’s launch is phased to manage capital expenditure and risk:

• Phase 1 (early 2026): commissioning of an $11 million line dedicated to producing 6,000 tonnes of potato flour and flakes, demonstrating a commitment to full potato utilisation.
• Full Production (2027): the main French fries line is expected to reach full capacity, creating approximately 300 jobs.

The majority of the $110 million financing is provided by Potato Agro’s associated Mais Group, supplemented by a bank loan. Tereshchuk is actively seeking strategic investors to finalise the project’s funding, noting that partnership selection is deliberate, likening it to a “marriage.”

To address a key manufacturing hurdle in Ukraine in the current lack of locally cultivated potato varieties suitable for premium processing, Potato Agro has been running a decade-long agronomic programme.

Agronomists have worked on selecting, adapting, and propagating imported seed material to ensure local raw material quality.

Raw materials will be sourced from the company’s own and leased land, supplemented by contracted farmers within a 300 km radius, establishing a dedicated, robust supply chain for the facility.