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A €4 million potato flakes plant to be built in Volyn region

A €4 million potato flakes plant to be built in Volyn region

Volyn Smart Agro Cluster is launching a project to construct a potato flakes production plant valued at up to €4 million

Volyn Smart Agro Cluster has announced the launch of a project to build a modern plant for producing dry potato puree (potato flakes) worth up to €4 million. The facility is being developed with the participation of a European investor who has already provided a commercial financing proposal. The investment project will be presented on 14 November at the ReBuild Ukraine international exhibition in Warsaw, where details of the agreement and implementation timeline are expected to be unveiled.

Strategic importance for the region

The plant will become part of a regional potato processing cluster and ensure a full production cycle — from cultivation to deep processing. This will allow farmers in the Volyn region to sell not raw potatoes but a high value-added product.

The enterprise will create new jobs, increase tax revenues, and contribute to the economic development of rural communities.

The project builds on years of preparatory work by the cluster: renewing potato varieties with high starch content, establishing a laboratory at Lutsk National Technical University, forming a raw-material base, and identifying a land plot for the future facility.

Technology and production

The plant will specialise in the production of dry potato puree (potato flakes), a product widely used in the food industry, snack production, ready-made meal components, and instant soups. It will be equipped with European technological lines, enabling the production of high-quality goods that can compete with major manufacturers.

The facility is expected to meet the needs of western Ukraine while also targeting export markets in the EU and Asia, where potato flakes enjoy stable demand due to their long shelf life and ease of transportation.

Current outlook and next steps

The project is at the final preparatory stage ahead of construction. Following the investor agreement, a detailed construction and launch schedule will be announced — preliminarily within 1–2 years.

In parallel, the cluster is considering a second investment initiative: building a potato starch processing line estimated at around 20 million UAH. The implementation of both projects will allow Volyn to establish a full processing complex, including the production of potato flakes and starch.

Expected impact

• Significant income growth for farmers through value-added processing
• Job creation
• Strengthening food security by reducing reliance on imported goods
• Developing the region’s export potential
• Enhancing the competitiveness of Ukrainian producers against international companies (Nestlé, Mareven Food, etc.)

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