News Potatoes
Avebe unable to maintain rising potato price trend
Royal Avebe today announced the performance indicator (formerly the performance price) for starch potatoes. The upward trend that was set a few years ago could not be continued for the 2023/24 financial year.
The performance indicator for the 2023 harvest amounts to €118,62 per tonne of starch potatoes. This means that the performance price is 11% lower than in 2022/23, when it was €133,34 per tonne. Two factors play an important role in pricing. Avebe points to the macroeconomic climate with a global recession, declining consumer demand and pressure on prices. This also had consequences for Avebe's sales volume. This decreased. The other reason for the lower performance price is a number of one-off costs related to the new course of and making the group more efficient.
Key figures
The cooperative result came to €2,6 million. Furthermore, the cooperative points out that a number of key financial figures have improved. Solvency has improved by 6,2% and equity has grown. Cash flow is also healthier. This should ultimately have a positive effect on the cooperative's earning capacity.
Transition in progress
Chairman of the Board David Fousert acknowledges that last year's payout price has (unfortunately) not been exceeded, but does point to the company strategy 'one Avebe', which should lead to "a positive future with further improvement of our results." He continues: "Our transition to accelerated creation of added value for our farmer members, employees and customers is in full swing."
The performance indicator, previously performance price, tells how Avebe has performed over the years. The performance indicator is a sum of the potato money, the transport costs and the cooperative result. The performance indicator is standardised on a starch percentage of 19 percent. This amount is separate from the potato money that the farmer members receive. The potato money consists of the campaign price, the performance components and the payment from the cooperative result.
Jurphaas Lugtenburg
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