The estimate that Avebe made for the starch potato harvest 2023 earlier this year was too rosy. That is the conclusion that can be drawn from a message about the basic price that the cooperative has sent to its member growers.
Avebe has adjusted the basic price (the price that the grower receives immediately after delivery, i.e. for the cooperative result) to €95 per tonne. In March, when the base price for the 2023 harvest was set, the market outlook was more positive than now. Avebe writes to their member growers: "In recent months, consumers have been more cautious and sales prices have stabilized. This has accelerated pressure on demand (industrial and food sector). Our stocks are also increasing faster." Avebe cites inflation, which remains high, and the economy, which is showing signs of recession, as the cause. This means that the cooperative is certainly erring on the side of caution and is now lowering the basic price.
Earning power
Avebe expects that the campaign price for the 2023 harvest will be higher than €95 per tonne. Measures are taken for this by the potato processor. According to the cooperative, the earning capacity of the members and maintaining the attractiveness of starch potato cultivation are paramount. The cooperative has been concerned about the latter point in particular for some time. This is what David Fousert CEO of Avebe talked about competition in the field of other crops such as chip potatoes and seed onions. In the same article, Fousert predicted a record performance price for the 2022/23 financial year (the 2022 harvest) of €125 per tonne, or even slightly more.