Royal Avebe Concludes Fiscal Year 2023/2024 with a Performance Indicator of USD 128.57 per Ton of Starch Potatoes

The cooperative faced a challenging year both in macroeconomic terms and in the fields. Avebe’s strategy, Strengthen and Accelerate, is aimed at making faster, more significant strides in increasing the payout price to farmer members. 

This fiscal year, the focus was on transitioning to a market-driven organization, creating a more efficient Avebe, and expanding partnerships. The cooperative result amounted to EUR 2.6 million (USD 2.82 million). 

David Fousert, Chairman of Avebe:

"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 a unified Avebe. Our transition to rapidly creating more value for our farmer members, employees, and customers is in full swing."

A Strengthened Financial Foundation 

Due to global economic conditions and some one-time costs, Avebe's impact is not immediately visible in the further improvement of potato money. However, growth can be seen in other financial key figures. Solvency improved by 6.2 percent, equity increased, and cash flow became healthier. Ultimately, this will positively affect the earning capacity of Avebe’s farmer members, which is essential to keep starch potato cultivation attractive. 

Strategy to Strengthen and Accelerate 

With its product portfolio and market position, Avebe is taking necessary steps. Potato ingredients are used in various food products, in plant-based food alternatives, and offer biobased products to replace synthetic and chemical products. Investments have also been made in updating production lines, further automating, and making factories more efficient. Strategic partnerships have been established, such as with Brenntag and ChainCraft. 

Explanation of the Performance 

Indicator The performance indicator, formerly known as the performance price, shows how Avebe has performed over the years. It is a sum of the potato money, transport costs, and the cooperative result, standardized at a starch percentage of 19 percent. 

This amount is separate from the potato money that farmer members receive. The potato money consists of the campaign price, performance components, and the payout from the cooperative result. Refer to the flyer for more details.