Royal Avebe concludes the financial year 2023/2024 with a performance indicator of €118.62 per tonne of starch potatoes. For the cooperative, it was a challenging year both macro-economically and in the fields. Avebe’s strategy Accelerate and Strengthen, aims to take faster, larger steps in increasing the payout price to its farmer members. This financial year, the focus was on transitioning to a market-driven organisation, a more efficient Avebe, and expanding partnerships. The cooperative result amounted to €2.6 million.
“Although we cannot surpass last year’s payout price, we are making solid steps towards a positive future with further improvement of our results through one Avebe. Our transition to rapidly creating more value for our farmer members, employees, and customers is in full swing,” said David Fousert, Chairman of Avebe.
A strengthened financial foundation
Due to global economic conditions and some one-off costs, the impact Avebe makes is not immediately visible in the further improvement of the potato money. However, growth can be seen in other financial key figures. Solvency has improved by 6.2 percent, equity has grown, and cash flow is healthier. Ultimately, this will positively affect the earning capacity of Avebe’s farmer members, which is necessary to keep starch potato cultivation attractive.
Strategy Accelerate and Strengthen
With its product portfolio and market position, Avebe is taking the necessary steps. Potato ingredients are used in various food products, plant-based food alternatives, and they offer bio-based products to replace synthetic and chemical products. Investments have also been made to keep production lines up-to-date, and factories have been further automated and made more efficient. Additionally, strategic partnerships have been established, such as with Brenntag and ChainCraft.
Explanation of performance indicator
The performance indicator, formerly known as the performance price, indicates how Avebe has performed over the years. The performance indicator is a sum of the potato money, transport costs, and the cooperative result. The performance indicator is standardised at a starch percentage of 19 percent. This amount is separate from the potato money paid out to the farmer members. The potato money consists of the campaign price, performance components, and the payout from the cooperative result.
View all results and figures in the integrated annual report 2023/2024
