Royal Avebe Achieves Performance Indicator of EUR118.62 per Tonne of Starch Potatoes
At the end of the 2023–2024 fiscal year, Royal Avebe’s performance indicator is EUR118.62 per tonne of starch potatoes, even though the cooperative had a difficult year in the fields as well as the macroeconomic environment.
The goal of Avebe’s ‘Accelerate and Strengthen’ plan is to increase the payout price to its farmer members more quickly and significantly. The goals for this fiscal year were to increase collaborations, make Avebe more efficient, and shift to a market-driven company. The combined outcome was EUR2.6m.
“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,” David Fousert, Chairman of Avebe, mentioned.
The influence Avebe has on the further advancement of the potato money is not immediately apparent due to the state of the world economy and a few one-time expenses. Nonetheless, other important financial metrics show an increase. Cash flow is stronger, equity has increased, and solvency has improved by 6.2%. In the end, this will have a good impact on Avebe’s farmer members’ earning potential, which is essential to maintaining the appeal of starch potato production.
“With its product portfolio and market position, Avebe is taking the necessary steps. Potato ingredients are used in various food products, and 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,” the company’s representatives recently mentioned.
Previously referred to as the performance price, the performance indication shows Avebe’s historical performance. The total transportation expenses, the potato money, and the cooperative outcome are the performance indicator. The starch percentage of 19% is the standard for the performance indicator. This sum is distinct from the potato money that the farmer members receive. The campaign price, performance elements, and the payoff from the cooperative outcome make up the potato money.
