'Growing starch potatoes is not self-evident'

The performance award for this season exceeds the target. As CEO, do you look back on the past season with satisfaction?
"The performance price for the 2021/22 season is €98,56 per tonne. This is a historically high price and is above the target of €93. We have been able to achieve this in part by passing on price increases to our customers. Almost all raw materials have become more expensive and we have gone along with that trend. Our strategy to focus as much as possible on markets where we can really achieve more value for customers with our products has also contributed to this. In addition, the revenue per hectares of potatoes from the 2021 harvest were on average good for the growers. We were able to achieve a good result for our members."

Time to sit back?
"Certainly not! In conversations with our members, I regularly hear that starch potatoes are the foundation on which their company floats. As Avebe, we realize very well that it cannot be taken for granted that this will remain the case, especially when you see how the markets are moving. "The cultivation costs for starch potatoes have risen enormously. At the same time, we see that the prices of wheat, onions, French fries potatoes and sugar beets have risen sharply. There is competition for a place in the cultivation plan. Growers have financially interesting alternatives to the cultivation of starch potatoes."

"The course of this season also plays a role in the decision that growers make. Due to the drought this season, the hectare yields are lower, which differ greatly per region. There are also relatively many problems with the storage life of the potatoes. "We see this especially in Germany. In consultation between the field service and growers, we can deal with this well by pushing back the batches that do not have storage problems and processing the problem batches earlier."

"In addition to achieving a good price for the potatoes for our members, it is important that we have and maintain sufficient supply of starch potatoes. We can only achieve this if we keep the cultivation profitable for our members and competitive with other crops. The basic price for the 2022/23 season we have already increased by 20% compared to last season to €78 per tonne. Due to the results achieved so far and positive prospects, we have been able to increase the basic price by €12 to €90 per tonne. Due to the good developments in the market, we expect the performance price to be at least €115. We are working hard to keep starch potato cultivation profitable for our growers and, like Avebe, to remain assured of sufficient supply of raw material."

Avebe is working on market-oriented sustainable potato cultivation. Doesn't that put you too much in the grower's position?
"No, and that is certainly not the intention. Our growers must be free and continue to make their own choices. We can offer growers options to become more sustainable. A good example of this is the collaboration we entered into last year with breeding company Solynta This allows us to focus on varieties with resistance to diseases, tolerance to drought or varieties that require less nitrogen."

"If a variety performs well in the trials, a grower does not simply switch, I have now discovered that. The grower first wants to see in practice that a new variety actually does well on his company and on his soil. Growers exchange experiences with each other. about the performance of a variety and the results of the neighbor are valued. By organizing field and demo days, among other things, we try to stimulate this exchange of knowledge and experiences."

Electric boilers have been installed in Gasselternijveen and Ter Apelkanaal. Was that a golden opportunity given the developments on the gas market over the past six months?
"That is very succinct. The electric boilers have been installed because we want to be less dependent on fossil fuels and want to reduce our footprint. We want to use green energy as much as possible to generate electricity. The electrification of the factories is part of our sustainable strategy. The gas price has risen sharply, but the electricity price has also gone through the roof. An advantage of the electric boilers is that we can use them flexibly at times when the electricity price is relatively low."

The agricultural sector is under fire from various sources, such as nitrogen, 7^e Nitrate Directive action plan and the use of plant protection products. What is Avebe's position in these discussions?
"It mainly creates a lot of ambiguity and uncertainty for our growers. Politicians must look at sustainability in the chain in a much more integrated way. And we tell them that. A measure that may be beneficial for water quality can have a negative impact on the capture of CO2. It is important that new legislation and regulations are well substantiated and have been examined integrally. Take the list of winter crops as an example. Starch potatoes were initially not on it, while we were able to demonstrate that a ripening starch potato crop binds more nitrogen after October 1 than a catch crop after October 1. We had to move heaven and earth to convince the ministry of this."

"We are not the problem, but part of the solution. Politics is pushing for a more plant-based economy. Avebe is a party that has alternatives, for example for products that currently come from the petrochemical industry or raw materials for plant-based meat or dairy. Avebe is the largest producer of vegetable protein in the Netherlands. And we do not need one extra hectare for this. The potatoes that are grown for our products are not at the expense of tropical rainforest. We try to highlight that and would should be known even more widely. We have a good and future-proof story to tell."