Starch Potato Campaign Royal Avebe in Full Swing

Royal Avebe's potato campaign is in full swing. The initial results show good quality of the starch potatoes delivered. 

On average, the starch content is over 20.5%, more than one percent higher than in the 2023 growing season. The average tare rate—the soil and stones that carry the potatoes from the field to the factory—of approximately 4% is lower than the multi-year average. 

Whether these percentages will remain the same throughout the campaign is yet to be predicted, as it entirely depends on the harvest progress. 

Harvested Potatoes 

In the Netherlands, the production site in Gasselternijveen started first with the delivery and processing of the potatoes in the week of August 26. The factory in Ter Apelkanaal followed in the week of September 23. 

About 75% of the potatoes have been harvested, though there are regional differences. In the first months, the potatoes from Avebe's farmer members come directly from the field to the factory. 

After that, the potatoes are stored covered on the field or come from the storage shed. The potato campaign continues through the spring. 

Definitions - Campaign price potato money & performance indicator

Royal Avebe uses various terms and concepts in its communication with its members and suppliers of potatoes regarding the company's financial performance and the payment of potatoes to its members and suppliers.

Basic price

The basic price is the basis of the potato money that members receive for their starch potatoes. The basic price is determined at the start of the growing season.

Membership fee.

Members who deliver on shares receive a membership fee of 5 euros per ton of potatoes. This membership fee is paid on the A and B volume.

Campaign price

During the potato campaign, Royal Avebe can decide to increase the price for the potatoes. This depends, among other things, on developments in the market. The basic price and any increase form the campaign price.

Performance components

Performance components are compensation for the starch content of the potatoes, the delivery time, the quality premium and the premium for filling the A volume. This also includes any settlement of tare components.

Potato money

The potato money is the amount that growers receive for their starch potatoes at the average starch percentage in the relevant campaign. The potato money consists of the campaign price, the performance components and the payment from the cooperative result.

Cooperative result

A part of the cooperative result can be paid out to the members. The members' council decides on this.

Performance indicator

The performance indicator tells how Royal Avebe has performed over the years. The performance indicator is a sum of the potato money, the transport costs and the cooperative result. The performance indicator is standardised on a starch percentage of 19%

What is the difference between A-, B- and C-volume?

Avebe uses the ABC model for potato delivery. This model concerns the quantities of delivered starch per share of Royal Avebe. For Royal Avebe, this is the foundation for the cooperative's raw material supply and the basis for production and sales planning. Growers have a delivery obligation of at least 3.8 tonnes and a delivery right of a maximum of 5 tonnes of starch per share of Royal Avebe.

Each year, the grower determines the A-volume himself. The A-volume is a delivery agreement on the quantity of starch that the grower will deliver to Royal Avebe. The space that remains between the agreed A-volume and the delivery right of 5 tonnes per share of Royal Avebe is the B-volume.

Can a grower deliver more than 5 tonnes of starch per share? Any delivery of potato starch exceeding 5 tonnes falls under the C-volume. This can only be delivered in consultation with Royal Avebe.