Avebe Results Boosted by Agricultural Subsidies Abolition

21 Nov 2014 --- In financial year 2013/2014 Cooperative AVEBE achieved - for the second consecutive year following the abolition of the agricultural subsidies - a good performance price: 75.07 euros. That is slightly lower than last year's record result. The cooperative result totals 8.3 million (12/13 11.4).

The performance price is an important indicator for the cooperative and reflects the total financial return per ton of potatoes. The effects of the deregulation of the starch potato chain were plain to see in the past financial year, which ended on 31 July 2014. This had to do with yields and price developments. The long cold spring of 2013 slowed down crops, resulting in a scanty harvest. This was accompanied by a rise in the potato prices for other purposes, which increased the pressure on the volume delivered to AVEBE. This put a brake on the cooperative's production efficiency.

These figures represent a solid result for AVEBE. The strategy of Innovation, Sustainability, Cost Leadership and Market Orientation that was launched last year is now firmly in place. As part of this strategy it was decided last year to invest substantially in the production capacity of vegetable protein, which is sold under the Solanic label. These vegetable proteins add a lot of value. The proteins are extracted by sustainable means using an innovative process. CEO and chairman of the board Bert Jansen: "This makes us unique in the world and enables us to stand out in the market. That helps us to achieve our strategic goals aimed at continually improving returns for our members."

Approximately 95% of the performance price has already been paid out directly to the members. A subsequent payment of 2.97 million euros will be proposed at the members' council meeting of 17 December.