Interview David Fousert
'Potato starch deserves a revaluation'
In recent years, Avebe has profiled itself particularly in the development of potato protein as an ingredient with specific properties in food. The cooperative company wants to grow in a higher gear in the current plant-based transition. However, in the new 'Strengthen and Accelerate' strategy that Avebe presented in Groningen on Wednesday, the emphasis is also on the accelerated development of new potato starch products. "We strive for a better balance between starch and protein," says David Fousert (photo), CEO of Avebe.
In the test rooms of the Innovation Center of Avebe in Groningen, there seems to be a shop shelf. Numerous food products are displayed on a long windowsill. From soups, noodles, chips, nuts, vegetable meats, oat milk, biscuits to sweets such as wine gums and licorice. They are not there for nothing. An ingredient from Avebe has been incorporated into all products. Gerard ten Bolscher, Chief Innovation Officer at Avebe, says enthusiastically: "If you walk through a supermarket, most food products contain potatoes."
It characterizes the development at Avebe, which has focused heavily on the development of plant-based ingredients in the last decade in particular. The potato protein in particular has caught the eye in recent years. Because in this Avebe has anticipated the spirit of the times. The company has developed a wide range of vegetable proteins as ingredients in meat and dairy substitutes. "Think of proteins that can improve the taste and texture, for example," explains Fousert. The plant-based options seem endless. For example, Avebe can produce a vegetable-boiled egg that bears a striking resemblance to a real hard-boiled egg.
Potato starch remains the base
However, Avebe, a cooperative of 2.300 members with its head office in Veendam, has traditionally been a producer of potato starch. The production of protein from the potato contrasts sharply with that of starch. Avebe produces 600.000 tons of potato starch on an annual basis, compared to 30.000 tons of potato protein. Starch is therefore still the basis on which the cooperative group floats. In the new 'Accelerate and strengthen' strategy, Avebe therefore places the emphasis on the accelerated further development of protein, fiber and starch. "Actually," Fousert admitted in the presentation of the strategy disappear, potato starch also deserves a reappraisal. In recent years, it has often only been about protein."
Boerenbusiness Fousert spoke shortly after the presentation about the new strategy, the concerns about the supply of raw materials, the agricultural agreement and the cooperation with fellow cooperatives.
At first glance, the new strategy does not seem very different from your current course: investing in plant-based ingredients with a higher added value.
"It seems so, but in our new approach we have made really essential choices. We not only want to bring our product portfolio in plant-based applications to the market at a faster pace, but also clearly indicate which markets we will serve and which markets we will serve less Potato starch also plays just as important a role as potato protein in this. We also want to create more added value in starch with more high-quality applications. In that respect, we strive for a better balance between starch and protein."
But what kind of market should I imagine, for example, that you will serve less?
"But the markets where more bulk starch is demanded. These are also markets where the competition from maize and wheat starch is fierce and therefore prices are often controlled. You should think of the paper industry, for example. We will use less starch product there in the future. deliver."
In its strategy, Avebe does emphasize non-food applications for your products, such as building materials. For decades, biobased products have been seen as a potential growth market, is this promise finally being fulfilled?
"You can see in foreign markets such as the United States, where we as Avebe are also active, that developments in biobased products are going faster than in the European Union. In the Netherlands, things are slowly starting to loosen up as well. For example, there are discussions going on about natural to include building materials from, for example, fiber hemp, sugar beet or starch potatoes in the Building Decree. Being able to make and apply such products, possibly also from residual flows, is of course a strong step in making chains more sustainable."
In the Netherlands, starch potatoes were grown on 43.000 hectares last year. Avebe expects the acreage to fall by 5 to 10% in the coming years due to various factors, such as competition from other crops such as chips potatoes and onions. But is this pressure on the area not that heavy, especially with the expected performance price for the 2022 harvest, which will be around €125 per ton?
"We can already be happy with the level of performance prize that we hope to pay out at the end of the season. But remember, we have come a long way. In the years before this performance prize was just under or well below €100 per tons. Our ambition is to structurally pay out more than €100 per ton anyway. Crops such as French fries potatoes do play a role, especially now that French fries manufacturers have increased the prices of the contracts. As a result, in northern France, for example, a lot of acreage of starch potatoes has been exchanged for chips potatoes. The area of onions in the Northern Netherlands is also increasing every year and look at fiber hemp and valerian. We really have to take these factors seriously. But the greatest pressure on available acreage really comes from changes in regulations and legislation."
The ambition is to keep the area of starch potatoes and thus the supply of raw materials more or less stable by recruiting new growers in Germany. Why there?
"In the Netherlands, growers have to deal with all kinds of water and soil measures, so that buffer zones and a wider rotation of the crops. There will probably also be an Agricultural Agreement that can also have an impact on arable farming. Some of our growers cannot irrigate, which means that drought on the plots are major challenges for them. Germany is of course much larger, which means that German growers have more options. For expansion, we are mainly looking at the German border area."
The strategy explores the possibility of also growing field beans and peas and processing them for protein, opening the door for Avebe to other crops. Why is that?
"These crops in turn have a specific protein that we can include in our range. Moreover, a crop such as field beans has the advantage that, with some minor adjustments, it can be processed in one of our current factories. But growing field beans is not yet attractive enough. The challenge is first to make cultivation attractive by earning returns in the market. That is the right order. We believe that the protein of field beans can be used excellently in blends with our starch potato products. But first create demand , in that order. That's how the members of the cooperative would like to see it."
How do you view an Agriculture Agreement?
"Despite all the discussion, I do hope that there will eventually be an agreement. There is a real need for perspective in the sector. I do not hope for partial agreements from the various sectors, because that can only lead to confusion. We need an integrated approach, thought from the chain. Take, for example, a clear vision of biobased materials. The emphasis is now on livestock farming, but there is also a need for clarity within arable farming. Remember that we have difficulty in getting starch potatoes on the provisional list of winter crops The transition from the CAP to 2023 has still not been formalised. Which way is it going, what is being asked of the arable farmer, for example in crop protection? The need for clarity is great, although we are well aware that arable farming as a vegetable sector has a better starting position in the debate than the animal one."
What is the biggest challenge for Avebe as a company, regardless of the market?
"It mainly lies in the labor market. Here in the innovation center we work with highly educated colleagues, some of whom are from abroad. Binding these talents to us is easy for Avebe. They often consciously want to work for us, if they see what developments we are working on in the plant-based transition. A real bottleneck for Avebe is the occupation of the factories, so the real technicians, the engineers. They are really very hard to find, despite the growing attention for technology. keeping the factories up to standard is a real challenge for us."
Avebe has the same portfolio as Cosun on the side of vegetable proteins, and also when it comes to the processing of agricultural raw materials. Many members of Avebe are also members of Cosun, while you are competitors in, for example, the vegetable protein market. Wouldn't a much closer collaboration or merger be the obvious choice, also to save costs?
"Let's start by saying that we already work very well with Cosun and also with the FrieslandCampina and Agrifirm cooperatives, for example within our Fascinating partnership. We are a little further along in the journey of plant-based protein than Cosun, which has only recently taken steps into this market. Within Fascinating, however, we try to collaborate and innovate on as many fronts as possible. The collaboration suits us, as I now experience it, very well. As cooperatives, we really prevent the farmer's euro from being used more than once in various areas. spent for the same purpose. That is pure profit for our common members."
Eric the Thrush
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