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Profitability Model of Potato Processing Enterprises Subtly Undergoes Change
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Profitability Model of Potato Processing Enterprises Subtly Undergoes Change

According to traditional thinking, the core product of potato starch processing is "starch," and whether a company is profitable primarily depends on raw material costs, starch prices, and processing cost control. In simple terms, if starch can be sold at a high price, the company makes money; if it is sold cheaply, the company does not.


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However, in the past two years, many insightful and innovative potato processing companies have quietly changed their profit models. Although starch remains the core product, the real profit-makers for these companies are by-products such as potato protein, dehydrated potato residue, and dried potato residue.


The owner of a potato starch processing company in Northwest China provided the author with some calculations: the factory produces over 200 tons of starch daily, extracts more than 15 tons of protein, and generates over 1,000 tons of dehydrated potato residue.


The price of potato protein is 6,500 yuan per ton, yielding around 100,000 yuan in daily protein revenue;


Dehydrated potato residue sells for 80 yuan per ton, generating a daily residue income of over 80,000 yuan. Assuming a production season of 50 days, the net income from by-products would be 9 million yuan.


Even if starch is sold at cost, without making any profit, the company can still achieve profitability.


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This transformation did not happen overnight but is based on a keen insight into market demand and continuous innovation in processing technology.


As people pursue healthy diets, potato protein, with its high nutritional value, has gradually gained market popularity. Dehydrated potato residue and dried potato residue, previously considered waste by-products, have now found new uses.


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For example, dehydrated potato residue, rich in dietary fiber, can be used as a food additive or animal feed ingredient; dried potato residue can be used for biomass energy production. The development and utilization of these by-products not only broaden the profit channels for the companies but also provide possibilities for extending and adding value to the potato industry chain.


The successful practice of this company offers valuable insights for other potato processing enterprises. In an increasingly competitive market environment, relying solely on starch sales is no longer sufficient to meet profitability needs.


Companies need to shift their thinking, innovate in processing, and develop and utilize by-products to find new profit points. At the same time, the government and society should also give more attention and support.


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Through policy guidance, financial support, and other means, the transformation and upgrading of the potato processing industry can be promoted towards sustainable development. Only in this way can market demands be better met, agricultural efficiency improved, farmers' incomes increased, and a virtuous cycle and healthy development of the industry achieved.


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