Starch Manufacturer AVEBE looks back on a good financial year

In financial year 2010/2011 potato starch manufacturer AVEBE achieved a net profit of EUR 19.8 million with a net turnover of EUR 525.1 million. By way of comparison: in the previous financial year the net profit was EUR 2.8 million with a net turnover of EUR 521.8 million.

The 2010 harvest was 20% lower than normal. The availability of alternative starches such as tapioca starch was under threat because of a smaller harvest in Southeast Asia.

The grain harvest was also reduced by heat, drought and flooding. These conditions, combined with a smaller potato harvest, gave AVEBE opportunities in important markets.

Chairman of the Board and CEO Bert Jansen: “We made good use of the opportunities in the market. That has made it possible for us to catch up with the planned investments. Those investments are needed to reduce the cost price even further in response to the abolition of the subsidies for the cultivation of starch potatoes in 2012".

A total price of 67.32 euros per ton of potatoes was earned. That represents an increase of 20 euros a ton compared to the previous financial year. Most of this goes to AVEBE’s members. That includes the price of the potatoes delivered and the anticipated payment from the profit.

At the general meeting in December 2011 the Members’ Council of AVEBE will be proposed paying out a sum of approximately 7.6 million euros to the members. This constitutes a price of about 98 euros for each fully subscribed share. The result also makes it possible to reduce the financing by the members.

Because the demand for AVEBE products has been good in the initial months of the current financial year, it has since been announced that the market bonus for the supplies in 2011/2012 will be at least EUR 7.50 per ton of potatoes.