Foreword
I would like to start this foreword with a word of thanks to the team and farmer members of Royal Avebe. Thank you for your energy, effort, commitment and achievements. It was another challenging year, both within the macro-economic framework and in the fields. And in that context, we delivered a solid performance together as one Avebe, despite not being able to maintain the upward trend in potato money. We also implemented a new strategy that will help us in accelerated growth and additional value in the coming years.
Challenges in the fields
At harvest time, it was extremely wet. Our growers faced challenge after challenge, resulting in lower yields and some plots not being able to be uprooted at all. Even though everything at Avebe starts with a good potato harvest.
Our strategy allows us to make faster, bigger strides in payout price growth in the medium term
Challenges in the economy
In the macroeconomic environment, we started the financial year where we ended the previous one. Globally, there was a recession and declining consumer demand with, at the same time, high energy prices permeating everything. Due to all these external challenges, we had to make sharp choices and the performance indicator (formerly: performance price) did not break records this year, partly due to some one-off costs. Multi-yearly, we are able to continue to grow and build a solid foundation for a higher payout price. Even if conditions are challenging. This growth is also necessary to keep starch potato cultivation attractive.
Further with Accelerate and Strengthen
The new strategy Accelerate and Strengthen therefore focuses on accelerating the creation of added value for our farmer members and customers as well as our employees. Our strategy allows us to make faster, bigger strides in payout price growth in the medium term. Looking at the past year, I am confident that we will succeed if we work on this together and as one Avebe. Putting our shoulders to the wheel together and working collectively for a better result!
David Fousert, CEO Royal Avebe