'We must continue to earn a place in the construction plan'

The strong increase in the campaign price in recent years is a positive development in that respect, but it will have to increase further in the coming years to continue to earn a place in the grower's construction plan. "The picture for the new season is quite good so far, that gives confidence."

Fousert has been CEO of Avebe for almost four years now and is well established in the north of the Netherlands. Under his leadership, a new strategy was launched a few years ago, which is mainly aimed at moving away from the bulk market, in order to increase the earning capacity. And that is not without success, given the rapid increase in the campaign price. For the 2024 harvest, the payout price rose to €115 per tonne, which represents an increase of €15. Since 2021, a price increase of almost 60% has been visible. In addition, more potatoes were processed last year than expected and for 2025, the registration for the A volume is again larger.

The potato price needs to 'go up significantly', you said a few years ago. That seems to be working out pretty well. Are you happy with the campaign price?
"In yet another challenging year, we can be satisfied. But that is mainly due to the upward trend that our campaign price has shown in recent years. This development is positive and also necessary for several reasons. Costs for cultivation are also increasing due to inflation. In addition, there is considerable competition in the field, which means that the cultivation of starch potatoes must also be interesting from a price point of view. As Avebe, we must continue to earn our place in the construction plan. This means that we must try to continue the price steps that we have taken in recent years in the coming campaigns."

Is that also realistic?
"That is a difficult question, given that our campaign price depends on many factors. The past three years, the price increases were greater than in the years before. That offers perspective. At the same time, the sales markets are characterized by increasing uncertainty due to the trade war. More than 15% of our sales go to the United States, which means that a significant part of our sales may be burdened with additional import duties. The weaker dollar is also not positive. At the same time, the uncertainty leads to lower energy costs and that is of course favorable for us. I would like to say that it is still quite positive. We have also shared this with our members for the upcoming campaign. We see good demand on our sales markets at stable, good prices. We are also succeeding in gaining market share in certain segments. The picture for the new season is quite good so far, that gives confidence."

"We get out what's in it", has been Avebe's slogan for a few years now. You could also include this financially. Has this goal already been achieved?
"We are trying to maximise the potential in the market and are making good progress in this. We are now moving into year three of our new strategy, the essence of which is to move away from the bulk markets where there is a lot of competition from corn and wheat starch. For example, you should think of the basic paper industry or the textile market. Instead, starch is increasingly playing a role in the biobased construction market. In addition, we are also looking at other fronts to create more earning power for our members. This involves creating more efficiency, for example in saving energy. The ambition is a cost reduction of 1,5% per year and we are structurally above that. That is extremely positive. Certainly in the context of the high energy prices that we have been confronted with in recent years." 

"In addition, we are taking steps with Averis, our subsidiary that is active in developing and marketing seed potatoes. This company is a rough diamond that we are currently polishing. Compared to the past, we are implementing a different strategy. We are coming from a situation in which we exclusively produced varieties for starch potato cultivation in order to primarily serve our own members. Now we also serve other markets by, for example, making varieties available for the cultivation of flake potatoes. Promoting varieties more widely than just for our members is commercially interesting. But I want to emphasize that we guarantee the availability of varieties for our own members, which is not a given every year. We are increasingly focusing on developing varieties that are resistant to potato diseases such as Phytophthora, but can also withstand drought better and require considerably fewer crop protection products. In order to achieve the best possible balance improvement. Reducing cultivation costs is at least as important to our members as just focusing on the campaign price."

Avebe makes no secret of the fact that raw material supply is an issue in the long term. Yet the volume in 2024 showed an increase and you are also positive about the upcoming campaign.
"The last campaign was better than expected in terms of volume. We processed more potatoes, partly due to good growing conditions and also a limited amount of extra potatoes purchased on the free market. For 2025, we expect healthy growth again year-on-year if we look at the expected delivery, although the drought this spring is worrying. The expected growth feels that there is more confidence in the cultivation of starch potatoes and Avebe's strategy. We are happy with that."

Am I drawing the right conclusion that Germany is the growth market for the coming years, given that the cultivation of starch potatoes there is relatively much smaller?
"Germany is already an important area, because about a third of the approximately 2.000 members are German. In terms of the intended growth in terms of hectares, Germany does indeed have the most potential. We focus on two areas: Weser-Ems, just across the border for the supply to the Dutch factories, and we are also in East Germany around the river Elbe. In terms of yield improvement per hectare, the Netherlands has a relatively greater influence."

If we look at the broader picture of starch potato cultivation, the market is in your favour. This in view of the lower prices for wheat, sugar beets and French fries potatoes…
"We are well positioned due to the rising price, also with the positive expectations in our sales markets for this season. As you describe, other crops sometimes show a different financial picture. Does that help us? I think so. But I prefer to relate it to our own story. What I hear from growers is that they consider starch potatoes a stable factor in the cultivation plan. And that is necessary, because in recent years, also here in the northeast, many new crops have been introduced that provide competition in the field."

Do you also look at land that becomes available from dairy farmers who are retiring for additional acreage?
"This could be an opportunity for us, but it is not something we immediately take into account in our forecasts. There are many different views on how livestock farming will develop and we are of course monitoring that. A different balance between grassland and arable land may arise and then the cultivation of starch potatoes may come into play. Here too, the price of starch potatoes must be attractive enough to earn our place in the crop plan."