Foreword
We can look back on a solid year with appropriate pride, and I would like to begin with a word of sincere gratitude to the Avebe team - both growers and employees. The performance indicator is higher than last year and even exceeds initial expectations. Once again, we have made good progress on our strategy. As one Avebe, we worked hard and achieved strong results. Accelerated growth - the ambition of our Accelerate and Strengthen strategy - has certainly been realised this financial year.
Stabilisation of Avebe's potato starch acreage
The results inspire confidence among growers, which is reflected in the availability of raw materials. Whereas shares were surrendered or parked in previous years, we now see a stabilisation in the number of surrendered and parked shares, with slight growth in Germany. There appears to be increased confidence among Avebe’s regular growers. We are focusing on a stable supply of raw materials from our members in order to unlock Avebe’s growth potential further. At the same time, we are witnessing considerable dynamics in the broader potato market in Northwest Europe, with, at the time of writing, a surplus of potatoes due to an increase in the cultivated area, reduced demand from the chip industry, and low prices. These developments are having an impact on Avebe and require ongoing awareness.
Accelerated growth - the ambition of our Accelerate and Strengthen strategy - has certainly been realised this financial year
Global uncertainty
The world continues to be subject to a certain degree of uncertainty. Geopolitical tensions, ongoing conflicts, and erratic international trade policies are creating volatile market conditions globally. Closer to home, the political situation in Europe - such as the delayed decision-making around the Nitrate Directive - is causing stagnation in new legislation and regulation. This uncertainty complicates strategic choices in sustainable arable farming and investments in innovation. Moreover, these circumstances contribute to fluctuating customer purchasing behaviour and increase uncertainty in the markets in which Avebe operates.
Second year of the strategy
Despite this dynamic environment, I believe our cooperative is stronger than ever. Over the past year, we saw stable demand in the markets where Avebe is active. Sales volumes remained steady, and in the value-added segments we strategically focus on, our market share is increasing. The progress we are making this year is valuable, but the true strength lies in our collective energy, sharp focus, and effective collaboration, which continue to unlock Avebe’s potential. The transition we are undergoing requires more entrepreneurship, greater agility, and thus more “Play to Win” behaviour. Avebe is evolving into a customer- and market-driven organisation.
Added value with starch potatoes
The emphasis is shifting away from bulk markets and towards creating distinctive added value through innovation and sustainability. That we are on the right track is evident from the various product launches with our customers over the past year. This gives us confidence for the future. We are able to give concrete shape to our strategy and create added value - a necessary transition to keep starch potato cultivation relevant in our members’ crop plans and to achieve higher returns for starch potato farming.
David Fousert, CEO Royal Avebe
