AVEBE Has Good Financial Year Without EU Subsidies
20 Nov 2013 --- AVEBE has again achieved a higher performance price over the last year. This performance price was 77.36 Euro per ton of potatoes, therefore exceeding previous year's price of 76.94 Euro per ton. This is an important step forward for AVEBE in the realisation of a structural improvement of returns for its members.
The performance price is an important indicator for the cooperative, and represents the total financial yield per ton of potatoes. The past financial year, which ended on July 31st 2013, was the first time AVEBE did not receive 14 million Euro agricultural subsidies from Europe.
The cooperative result came to 11.4 million Euro. During the potato harvesting season, the price paid for potatoes was more than 10% higher (approximately 20 million Euro), which was one of the reasons for profits being lower than the previous financial year (32.1 million Euro).
A proposal will be made to the AVEBE members' council in the annual meeting of December 2013, to pay out an extra 4.2 million Euro from the financial result to the members. This equals approximately 46 Euro per fully delivered share. Members will also be paid a return on share premiums and there is leeway to repay deposits on A certificates to the members, to the tune of 3.9 million Euro.
Partly under the influence of the economic recession, the sales volume lagged behind the original planning. The price initially developed positively, due to a threatened shortage of potatoes. Clarity was gained regarding availability over the course of the year, putting the returns from the market for native starch under slight pressure in the end. Prices eventually stabilised at a reasonable level. The market for modified starch remained more stable throughout the year. This is a market segment in which AVEBE has clearly strengthened its position in recent years.
The AVEBE strategy is a clear one, in which innovation, market orientation, sustainability and cost leadership play a central role. CEO Bert Jansen: "We have invested many millions in our company in recent years, and the time has now come to cash in on that investment. We do so in a sustainable manner. With innovations which enable our customers to enjoy a distinct market position. Good examples include Etenia, which allows us to replace fats in foods without using E-numbers, but also the high quality Solanic vegetable proteins that offer distinguishing quality. In cultivation, this strategy is translated into projects such as that of our Averis Seeds subsidiary, where we apply new varieties with extra starch and improved resistance against illness, to specifically work at a higher yield. And so we work together towards a sustainable future for our cooperative."
