Royal Avebe concludes financial year 2021/2022 with a cooperative result of 12.1 million euros

NewsFriday, 09 Dec 2022

Today Royal Avebe published its integrated annual report for the financial year 2021/2022. The financial year was concluded with a cooperative result of 12.1 million euros. The performance price – the most important indicator of Avebe’s earning capacity – ended at a record high of 98.56 euros for the harvest year 2021. This means the cooperative pays 5.6 percent more to its members than last year. “This rise in the performance price is needed to keep starch-potato cultivation attractive. The harvest in cultivation year 2021 and the corresponding performance price of 98.56 gives our growers a solid result,” said David Fousert, Avebe board chairman.

The financial year 2021/2022 was a challenging year for Avebe

At the start of the financial year we were still dealing with coronavirus and we had a hard lockdown in December 2021. Then came the first signs of inflation. Costs rose even further due to the Russia-Ukraine war. Fousert: “Our members are faced with significant cost increases and uncertainty caused by legislation and regulations. There is also enormous competition on arable land. A good price for starch potatoes is important to keeping starch-potato cultivation attractive compared to wheat, maize or consumer potatoes.”

Growth based on sustainability and innovation

Sustainability and innovation are the two drivers that underpin the added-value strategy of Avebe. Fousert: “If we consider what we had to deal with the last financial year, we managed a strong performance and took massive strides. I’m proud of our members and our employees and of how we have posted this result together. We are aware of the cost increases and want to continue taking the necessary steps. We see Avebe as part of the solution, particularly in the transition to a more plant-based economy. The demand for our products is good and grows year on year. Of course, we will be keeping close eye on the uncertainty and developments caused by a recession.”

The transition to more plant-based products, including in the construction industry, produces a host of opportunities for Avebe. Further increases in the performance price are absolutely essential to keeping cultivation attractive and to maintaining the raw materials for Avebe at the required levels. Avebe is therefore optimistic about the look ahead to cultivation year 2022. Fousert: “We expect to arrive at a performance price of at least 115 euros, which is well above the 95 euros envisaged in the current strategy. That is why we are raising the basic price1 for cultivation year 2022 from 78 to 90 euros.”