Profit warning for potato pool Aviko

Potato processor Aviko has issued a kind of profit warning to the participants of their potato pool. The expectation is that the final pool result will be very modest, the company indicates. The processor is not only selling its surplus potatoes as animal feed but also to digesters. In December, the Potato Growers Committee (ATC) of Aviko had to announce a dramatically poor ex-farm price. This was set at €25.07 per tonne. From Aviko's newsletter, it now appears that participants in the storage pool also have to expect a similarly poor result. Storage costs not covered Aviko speaks of a 'very modest pool result'. What price can be assigned here is still to be seen, but a free market price of €0 to €30 per tonne speaks volumes. According to the processor, it is realistic to think that storage costs will only be reimbursed to a limited extent. It holds a bit of uncertainty, but given the area expansion and monster harvest, the chance of a market change is particularly small. For comparison: For the harvest year 2017, the storage pool amounted to €55 for Fontane and €62.50 for Innovator. Despite this situation, Aviko states that it is fulfilling all its contractual obligations, but only takes in potatoes that are strictly defined in contracts. Even with this intervention, Aviko cannot accommodate all potatoes. Some of the contracted potatoes go to animal feed and, for some time now, also to fermentation. The buyer emphasizes that growers must adhere strictly to their contractual obligations, in the joint interest. Equal treatment Aviko will keep its contract and pool growers informed about developments, the company says, and wants to treat everyone equally. This is also necessary for the preservation of the pool, the processor writes. In the newsletter, Aviko has not yet made any statements about the future of its click contracts. With the cessation of the potato futures market, the basis for this is lost. It is not yet known what this means for the current contracts and those for the 2026-2027 season.