Not earlier than €80
Highest performance award ever for Avebe
Coöperatie Avebe pays out a performance price of €2016 to its members for the 2017/82,16 financial year. That's the best result ever. This price has never been above the €80 limit before. This involves a supplementary payment of €2,2 million.
According to Avebe, the record price is the result of a well-developing market, better production results and good quality potatoes. Fiscal year 2016/2017 ended on July 31 of this year. The performance price is a combination of the potato money and the net result together. Avebe closed the financial year with a positive result of €6,3 million.
81
euro
On top of campaign price
In May, Avebe already made known to come up with a campaign price of €68 per tonne of potatoes delivered. Including the maximum premiums and allowances, this rises to an average of €81 per tonne. The price level was already 15% higher than in 2015.
Potato growers who supply starch potatoes to Avebe are not paid the full €82,16. They receive € 1,30 in supplementary payment and return, which amounts to € 80,68. Transport costs and the distributed result are deducted from the 'farmer's price'. Last year the performance price for growers was € 75,58.
Betting on further growth
The Members' Council meeting will be held in December, in which the supplementary payment will be proposed. This amounts to €2,2 million for 2.500 members. The final payout ratio is 98%. "We have become more profitable in recent years. With the current result, we show that Avebe has the potential to grow," says chairman of the board Bert Jansen. "Our focus remains on our strength. Realizing added value and growing turnover."
New innovation center
In 2018, Avebe will focus on increasing added value. A new innovation center is being built in Groningen for this purpose, which must be active before the summer. There is also room for start-ups in the center. You will also find the innovation, marketing and sales departments there. Opportunities are being sought from the innovation center for the extraction of new potato ingredients.
The production of high-quality protein is being scaled up at the factory location in Gasselternijveen. According to the potato processor, this is a unique product with growing demand worldwide.
Niels van der Boom
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
