24
ANNUAL REVIEW IT ALL STARTS WITH THE PEOPLE FASTER TOWARDS GOOD SEED POTATOES The ‘Binding & Building’ strategy obviously involves meetings. Farmer Jaap Lingbeek and three members of Avebe Young get together for a good talk around the kitchen table. ‘Innovation is an important precondition for a good performance price.’ Steam, forklift trucks driving around, hazardous substances: safety seems to be a technical issue, but Edith Romp thinks otherwise. ‘It all starts with the people. The best results are achieved if safe behaviour is in our DNA.’ Right potato varieties are of vital importance to the farmer: do they have a high return, and are they resistant to diseases? Production manager Henk Folkers of Averis Seeds explains why new potato varieties will become available more quickly from now on. COVERSTORY REPORT 2014 / 2015 INTERVIEW WE ALL SHARE THE SAME OBJECTIVE

ANNUAL REVIEW - Avebe

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Page 1: ANNUAL REVIEW - Avebe

ANNUAL REVIEWIT ALL STARTS WITH THE PEOPLE

FASTER TOWARDS GOOD SEED POTATOES

The ‘Binding & Building’ strategy obviously involves meetings. Farmer Jaap Lingbeek and three members of Avebe Young get together for a good talk around the kitchen table. ‘Innovation is an important precondition for a good performance price.’

Steam, forklift trucks driving around, hazardous substances: safety seems to be a technical issue, but Edith Romp thinks otherwise. ‘It all starts with the people. The best results are achieved if safe behaviour is in our DNA.’

Right potato varieties are of vital importance to the farmer: do they have a high return, and are they resistant to diseases? Production manager Henk Folkers of Averis Seeds explains why new potato varieties will become available more quickly from now on.

C O V E R S T O R Y

R E P O R T

2 0 1 4 / 2 0 1 5

I N T E R V I E W

WE ALL SHARE THE SAME OBJECTIVE

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3

F O R E W O R D

We are guided by the theme of ‘Binding

& Building’, Avebe’s strategy since 2013.

This strategy concentrates on market

orientation, innovation, sustainability

and cost control. With this annual review

we show you at a glance how we have

performed; we present key data in figures

and images, clearly and concisely.

A number of concrete examples are given to

illustrate how we have taken another step

towards a stable and solid future for Avebe.

This is an important step that we have been

able to take thanks to the joint efforts of all of

our cooperative’s employees and members.

Thanks to you, Avebe can look back on 2015 with

satisfaction and forward to 2016 with confidence.

A STABLE AND SOLID FUTURE

With kind regards,

Bert Jansen

This is the second edition of the Avebe Annual Review. The purpose of this Annual Review is to let you know how Avebe is doing, what we have been working on during the past year and what we will be focusing on in the period to come.

Page 4: ANNUAL REVIEW - Avebe

‘BINDING & BUILDING’

Page 5: ANNUAL REVIEW - Avebe

Ed Kraaijenzank points out that there is

more to Avebe’s sustainability than achieving

energy savings and offering people a safe

workplace. ‘It’s all about how we position

ourselves in our environment, what we

want to mean to the world. The increase

in the production of food ingredients is

sustainable in itself, since we use valuable

raw materials to feed people.

In the past there was a time when Avebe

went on ‘all sorts of adventures’, as Bert

Jansen puts it, adventures that resulted in

serious losses. ‘The current strategy builds

on what we have already been doing for

some time now, on things that we are good

at’, he insists. Avebe focuses on the starch

potato, the whole potato and nothing but

the potato: ‘We see potential’.

But there is also another major change:

‘Thrift is in our DNA, and we’ve defined that

more precisely. We invest substantially in

things that add value. But there are still

company divisions that are just as thrifty

as ever. The key concept at Avebe is the

performance price, where the money that

B E R T J A N S E N , E D K R A A I J E N Z A N K

A notable aspect of Avebe’s strategy is

that the document formulates concrete

objectives in plain language. ‘’The last thing

we want is an unintelligible document that

ends up in a dusty old drawer’, explains Bert

Jansen, ‘what we do want is a concrete guide

for our day-to-day work.’ For the market,

Avebe makes an unequivocal choice for the

starch potato: ‘We extract everything to

be had from it’. And these days it contains

even more. Proteins have now become the

ingredient for many innovative products

and the focus has shifted from feed to food.

Safety, health & fitness and reducing

power consumption are key aims in the

sustainability area.

‘We’re now half-way through the ‘Binding

& Building’ period. In practice it’s often the

case that the results don’t become visible

until the end of the period. But fortunately

that’s different for us’, says Bert Jansen.

‘We’ve already made good progress, but

we’re not there yet.’ And it’s certainly true

that big steps have been taken in adding

value to protein from potatoes, reducing

power consumption and achieving

sustainability and health & fitness.

we pay the members for potatoes and the

net result come together in the bottom

line. Ed Kraaijenzank: ‘It’s our duty as a

cooperative to offer the members a degree

of income certainty; we have to help to

keep the farming sector in good shape’.

This choice appears to be bearing fruit, as

Avebe - after three years of highly varied

harvests - has been growing steadily.

The word ‘Binding’ in the strategy refers

to a property of starch, which works well

in soups and sauces, for instance. But

‘Binding’ in the strategy is interpreted more

broadly. ‘There used to be a bigger distance

between the members and Avebe’s

personnel. But these days Avebe is once

again becoming more and more a true

cooperative.

We haven’t taken any special measures to

achieve that - it’s about perfectly simple

things like being clear and consistent,

holding open days, having people visit

the plants, showing them all the products

we make. That results in a lot more

enthusiasm: and that’s what we mean

by Binding & Building.

Avebe has been following its strategy entitled ‘Binding & Building’ since the summer of 2013. The time has now come for an update, to review where Avebe is now. The strategy focuses on commercial choices: the choices of markets, products and investments in innovations. Another important element of the strategy is sustainability: what is Avebe’s position in the world, what does the cooperative do for its environment? Bert Jansen (CEO) and Ed Kraaijenzank (CFO) share their views on these issues.

The strategy builds on what we’re good at We are increasingly

becoming a true cooperative

5

is a guide for our day-to-day work

We invest substantially in things that add

value

Page 6: ANNUAL REVIEW - Avebe

A POSITIVE CRITICAL APPROACH

A N N U A L R E V I E W

The original idea of setting up a sales cooperative is still alive and kicking at Avebe. Combining forces as farmers makes it possible to create added value and strengthen our market position.

Translated into Avebe this means:

- Completely focusing on the potato

- A rewarding performance price

- A solid foundation for the

future, continuity

The strategic plan ‘Binding & Building’

makes a conscious choice for this approach

in all respects. Without descending into

complex financial details a choice has been

made to make the anticipated results visible

in the performance price. This is being

combined with the ongoing construction of

a healthy, fit and innovative company. The

Supervisory Board, which plays an important

role in approving the strategy, is in full

agreement with the direction and content of

the plan ‘Binding & Building’.

We are closely monitoring the

implementation in our supervisory

role. We focus on aspects including risk

management, cost control, the quality

of the organisation, the effectiveness of

innovations, continuous improvement of

day-to-day performance and of course

the financial side of things.

We believe that it is vital to ensure that

the company has an open culture towards

our customers, in which the interests of

member-shareholders and employees are

firmly anchored. A businesslike feeling of

community is appropriate to Avebe in the

spirit of the times.

The fact that Avebe is a healthy company

makes it possible to effectively pursue the

strategic plan. This offers good chances of

success but also calls for a positive critical

approach on the part of all stakeholders.

Complacency after all is a dangerous pitfall.

Together we get the best out of Avebe.

On behalf of the Supervisory

Board of Avebe,

Hans Hoekman, chairman.

Together we get the best out

of Avebe

S U P E R V I S O R Y B O A R D

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7

AINSUSTABILITYSustainability occupies a central position in Avebe’s Binding & Building strategy. This is translated into concrete objectives regarding aspects such as safety, energy savings and reduced CO2 emissions and water consumption.

precondition for the future

But there’s more to sustainability than

these objectives alone, says member

of the board Johan Russchen. “Working

more sustainably is a precondition for

our future, it is a central element of

our strategy. Not just because we think

it’s important, but also because our

customers have become more likely to ask

about our sustainability performance. For

that reason we made a start in 2014/2015

with collecting sustainability data from the

cultivation records, for example.’

People, planet and profit form the core

of our sustainability strategy. This means

that Avebe sets out to take a responsible

approach to the environment (planet), to

treat its employees with due care (people),

but also that working more sustainably has

to contribute to the cooperative’s financial

result (profit).

Avebe has agreed on concrete sustainability

objectives in order to pursue this strategy.

“Measurable progress has been made

in areas such as safety, health & fitness

in 2014/2015. A lot of hard work is also

being done on the other objectives, such

as increasing the yield per hectare and

reducing water consumption.

Page 8: ANNUAL REVIEW - Avebe

OPTING FOR SUSTAINABLE ENERGY

Avebe is setting out to reduce its CO2 emission by 25% in 2018. That is good for the environment and for Avebe.

Avebe has switched to green electricity

for the locations where electricity is

purchased. These are the locations that

are not self-sufficient with their own

combined heat and power plants. In

2014 the production location Stadex

in Malmö, Sweden, switched to green

electricity, followed in 2015 by the

production locations in Luchow and

Dallmin in Germany and Foxhol in the

Netherlands. The head office of the Van

Linge laboratory in Veendam, cultivation

company Averis Seeds in Valthermond

and various silos also make use of

sustainable energy. The electricity

consumption is also made sustainable

by purchasing ‘Guarantees of Origin’,

based on European solar energy

certificates. The choice for solar energy

was made consciously: “Of all the

available options this one is the closest

in keeping with Avebe’s CSR objectives”,

says Erik Koops, Energy programme

manager. “With these measures we

better for the environmentand better for Avebe

A CONSIDERABLE ENERGY SAVING WITH SMART MEASURES

are reducing the annual CO2 emission by

approximately 45,000 tons. This is

about 12% of Avebe’s total CO2 emission.”

Steam and electricity are produced

using gas at the Ter Apelkanaal and

Gasselternijveen locations, which have

combined heat and power plants.

This combined production of electricity

and steam has a higher energy output

than producing them separately. This

considerably reduces the CO2 emission

Better for the environment, better

for Avebe.

Power consumption has been greatly reduced in Foxhol. The saving was achieved by making use of the heat generated at the location and organising the process more smartly.

A 25% power saving has been achieved in

Foxhol by using the pumps in the waste

water treatment system differently. This

modification was made without any extra

investment being required. Even more

power savings are being achieved by

investing in heat extraction.

A heat extraction system in the chimney

of the steam boiler in Foxhol has now

been taken into use. The boiler produces

steam for heating the production

processes at several factories at

the location.

The steam produced in the boiler is

now used elsewhere in the production

process. The heat extracted via a hot

water pipe is used to heat the air in the

drying equipment. This saves over

1 million cubic metres of gas a year.

A N N U A L R E V I E W

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9

7%Achieved 2015

3%Achieved 2014

Agriculture18%Achieved 2015

2%Achieved 2014

Marketing trends17%Achieved 2015

7%Achieved 2014

Water

16%Achieved 2015

10%Achieved 2014

Systems52%Achieved 2015

40%Achieved 2014

Energy26%Achieved 2015

26%Achieved 2014

Safety

89%Achieved 2015

41,6%Achieved 2014

Health & fitness80%Achieved 2015

53%Achieved 2014

Social75%Achieved 2015

71%Achieved 2014

Logistics

Objective 2018: 15 tons of starch per hectare to be achieved in 25% of the acreage.

Objective 2018: Avebe is certified for relevant ISO standards.

Objective 2018: 25% less CO2 emission per ton of starch.

Objective 2018: An accident frequency index of less than 0.5.

Objective 2018: Sickness absence of less than 5%.

Objective 2018: Avebe is connected with its direct and indirect surroundings. Communication plans are in good order.

Objective 2018: The number of transport kilometres has been reduced by one million.

Objective 2018: All products to be given ecological profiles (carbon footprint).

Objective 2018: Reduced water intake for starch derivatives.

SUSTAINABILITYIN FIGURESR E S U L T

Avebe has translated its sustainability strategy into concrete objectives. This dashboard shows what progress has been made.

Page 10: ANNUAL REVIEW - Avebe
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1 1

THE KITCHEN TABLE Farmers, operators, logistics workers and financial controllers: people make Avebe. Various people with various roles in the cooperative Avebe. Since the motto of our strategy is ‘Binding & Building’ we also explain the connection between the various stakeholders at Avebe. A farmer and three members of Avebe Young sat down together to talk about their work, their ambitions, their experiences and ideas.

The meeting was hosted by Jaap Lingbeek,

starch potato grower in Nieuwe Pekela and

member of Avebe. He has put out coffee, tea

and cake on the kitchen table. As is often

the case with our farmers, he took over the

farm from his parents. This was traditionally

a combined farm with stockbreeding

and arable farming, but his grandfather

decided to concentrate on arable farming.

Jaap Lingbeek now grows starch potatoes,

sugar beets, grain and Amsterdam onions.

He appreciates the membership of the

cooperative for the stability and certainty

it provides: ‘Avebe is guaranteed the raw

product, we’re guaranteed our income:

we need each other.”

The visitors are members of Avebe Young,

in which employees up to the age of

thirty-five have united. The aim: to learn

and develop together. ‘It’s sometimes the

case that employees have little knowledge

of what happens in other departments

and at other locations. Just consider for

example the activities of Averis Seeds in

Valthermond, where the new varieties

come from. That’s why we regularly

organise ‘looks behind the scenes’ to make

the young employees aware of the chain

as a whole and gain an insight into each

other’s professional fields - that’s what

Binding & Building is all about’, according

to the Avebe Young delegation.

The following Avebe Young representatives

are at the table: Birthe Balster, commercial

controller, who has worked at Avebe for

two years; Thomas Koetje, AMF operator

in Ter Apelkanaal, and at Avebe for three

years; Mark Leenheer, Logistics manager

in Gasselternijveen, and at Avebe for

five years.

Whatever you do, whoever you are at

Avebe, you work directly or indirectly on

achieving the best possible performance

price for the growers. The aim is to achieve

a performance price of ninety euros a

ton of potatoes. What is Avebe doing to

achieve this ambition? Operator Thomas

Koetje kicks off: ‘I think that Solanic’s a

good example: a protein that can be used

in human food. That yields a lot more and

I N T E R V I E W

‘We all share the same objective: the best possible performance price’

Different people, different roles

Page 12: ANNUAL REVIEW - Avebe

also savings energy.’ Birthe Balster adds:

‘Innovation’s an important factor, with new

products we as Avebe create more value.

We’re also aiming to reduce complaints

throughout the organisation: looking for

ways of reducing the number of products

that fail to meet expectations.’ Mark

Leenheer points out the importance of

efficient processes at the plants. He

regards this as ‘a technical challenge

with a human factor’.

Now that the members of Avebe Young

have explained how they regard their

contribution to the performance price,

Birthe Balster would like to know what

the growers are doing to save costs.

Jaap Lingbeek is quick to respond with

a number of points. ‘We’re carrying out

plot-based research into crop protection:

we’ve taken an advice system into use that

answers the question: ‘Do I have to spray

against phytophthora now or can I wait a

few days? We’re also setting out to produce

as much starch as possible per hectare by

carefully selecting varieties and optimally

fertilising potatoes. Nature remains the

least certain factor, that’s beyond our

control.’

Jaap Lingbeek welcomes Avebe’s current

strategy. ‘Previously the situation was

always changing, but the course is now

clear. That’s a good basis for confidence.

We have every right to be proud of a

cooperative like Avebe.’ He believes that

Avebe has more potential when it comes

to adding value to potato protein on the

market for human food. That gives certainty

for his crop growing plan and his income

position. This has become even more

important to him now that he has reason

to believe that his son of twelve will want to

take over the farm when the time comes.

‘During the harvest season he even leaves

school early because he feels that he needs

to help dad to dig up the potatoes’, laughs

Lingbeek.

Put simply, Avebe is on the right track. Jaap

Lingbeek: ‘The course is clear, the lines of

communication to the grower are short,

you know where you stand, and that gives

confidence for the future.

Farmer Jaap Lingbeek in conversation with three members of Avebe Young

With new products we create

added value

Everyone works on an optimum

performance price

A N N U A L R E V I E W

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1 3

performance price over 5 years

potato money

subsequent payment and return

total paid

unallocated result

PERFORMANCE PRICE

performance price for 19% starch

71.27

1.77

73.04

2.45

75.07

72.54

2.26

74.80

2.56

77.36

63.91

5.44

69.35

7.59

76.94

57.76

4.45

62.21

5.11

67.32

2013/14 2012/13 2011/12 2010/11

73.32

1.88

75.20

3.21

78.41

2014/15

remains4%Sickness absence

solvencygroupcapital

borrowedcapital

solvency

totalcapital

2012/132013/14

195 192.3

200.3 244.0

49.3% 44.1%

395.3 436.3

2014/15

199.6

230.6

46.4%

430.2including provisions

number of employees

2010/11 1361 14.2 % 85.8 %

2011/12 1352 14.7 % 85.3 %

2012/13 1308 14.9 % 85.1 %

2013/14 1311 15.1 % 84.9 %

2014/15 1314 17.9 % 82.1 %

Averagenumber of

percentagefemale

percentagemale

ACCIDENTS FREQUENCY

1/08 2014

1/08 2015

THE NUMBER OF ACCIDENTS

EMPLOYEESIN WHICH ADOCTOR WAS CONSULTED

PER 10002.0 1.6

OUR AIM 0.5

POWER CONSUMPTION

ACHIEVED UP TO AND INCLUDING 2014/15

11% less CO2€ 3.1M lower energy costs

25%€6M

OUR AIM2017/2018CO2 REDUCTION

LOWERENERGY COSTS

AVEBEIN FIGURESR E S U L T

Page 14: ANNUAL REVIEW - Avebe

Achieving good returns per hectare starts with high quality starting material. The quest for new varieties that are resistant to diseases and yield a lot of starch calls for and is given a lot of attention. Avebe has a subsidiary that is dedicated to high quality seed potatoes and new varieties: Averis Seeds.

Henk Folkers, production manager,

explains the developments in the

cultivation of new varieties. ‘We’ve had

a programme for determining the value

of varieties for a number of years’, says

Henk Folkers. ‘This makes it possible for

new varieties to flourish more quickly

than in the previous situation. One big

difference: we involve the growers in the

process sooner. After all, they’re the ones

who work with the new varieties and the

seed potatoes. We would like to use the

experiences of the growers for this: that is

of great value to us. Especially in the final

stage of the selection process.’

Averis Seeds has its own test fields, but

they are similar to laboratories. There is no

test that gives results that are as reliable

as the practical situation in the growers’

fields. Another innovation is found in the

procedure. Up until recently the cultivation

process was as follows. ‘You looked for two

crossing parents with the right properties,

crossed them, and then planted the seeds.

All of the tubers went to the field, and from

the third year it was possible to determine

the resistance and yield situation.

These days we get that information

sooner. We take a piece of leaf from each

young plant and subject it to certain

DNA technologies. We’re now able to

test for resistance as soon as in the first

generation. That is an important time

gain.’ This makes the selection process

faster and more efficient, and we gain

better insight into the added value of

a new variety.

The experience of the growers

is of great value to us

AVERIS SEEDSfaster progress with new high quality varieties

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1 5

In July and August several open days were held in Avebe’s work area. One of them was the Field Day in Krautze in the Prignitz-Wendland region. Avebe has two facilities in this region (Dallmin and Luchow) at which potatoes are processed into potato starch, fibres and starch derivatives.

The field day was all about the cultivation

of starch potatoes and the cultivation

technique, and attracted over 400

visitors. A lot of attention was paid to

the varieties of the various cultivation

companies. Visitors gained a clear

image of the alternatives offered by

modern starch potato varieties, such as

those in the area of nematodes, mould

and bacterial diseases. As well as this

comparison of varieties ample attention

was paid to fertilisation and farming

technology. In a collaborative effort with

Maschinenring Lüchow a wide range of

modern machinery was put on display,

including stone removers, machines

for administering minerals and organic

fertilisers and mechanical weed removal.

The day was completed with a harvest

demonstration with two different

digging machines.

successful field day prignitz-wendland

Avebe at Agriculture Expo Vlagtwedde

Avebe and the Agro team and Averis attended

the Agriculture Expo in Vlagtwedde for the first

time in July. This presented an opportunity for

many parties such as members, suppliers and

colleagues to acquaint themselves with our

new corporate identity. There was also news

about varieties: we presented the variety Avito,

which is resistant to phytophthora. A small

demo field was made at the expo site especially

for this purpose.

The Agriculture Expo in Vlagtwedde is the trade

fair in the North of the Netherlands and is held

on a site of more than seven hectares. Suppliers

in the farming sector, agriculture and cattle

farming, earthworks, agricultural mechanisation

and contract work presented their products and

services at this three-day fair.

New trucks with Euro 6 engine on their way to Avebe. With effect from the 2015 harvest half of the trucks used to transport potatoes will have a Euro 6 engine.

more sustainable transport for avebeThis Euro 6 engine reduces NOx

(nitrogen) emissions by as much as

97%. During the past financial year

Avebe has made clear agreements on

this in its contracts with the haulage

companies. The strategy also includes

a concrete objective for reducing CO2

emissions. Avebe attaches importance

to producing sustainably. Potato

transport is an important factor here.

The first trucks with the Euro 6 engine

were taken into use in 2013. Half of

the trucks are now equipped with

this type of engine. The other trucks

are at least Euro 5 or EEV (Enhanced

Environmentally Friendly Vehicle).

Avebe and its transporters have thus

taken big steps towards meeting their

environmental objectives.

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1 7

Avebe is setting out to help its members to improve the returns in the fields. In some of the test fields we’ve achieved as much as 15 tons of starch per hectare. That rarely happens in practice. But that isn’t the point: ‘This is certainly a dot on the horizon. We’re reflecting the ideal situation in practice in order to find out how to improve the growing process’, says Jans Klok, who is responsible for the project aimed at improving returns (20-15-10).

J A N S K L O K

to improve returns

EVERYTHING TO HELP THE GROWER

‘With potatoes you only get one chance

a year, you can only get it right or wrong

once’, adds Jans Klok. That immediately

underlines the importance of an

optimisation programme. How does a

programme like this work? Which choices

are made from the variables that the

growers face, such as the quality of the

seed potatoes, crop protection, nutrition

and soil? Avebe has a clear focus: ‘In

this project we focus primarily on the

cultivation aspect, the actions taken by

the grower, says Jans Klok.

The growers can join study groups,

together with ten to twelve other

growers. ‘They share each other’s

knowledge and experience and learn

from each other’. Avebe also organises a

number of Open Days each year so that

the growers can take a look at the test

fields. Here too, possible improvements

are shown. Finally, there are four account

managers as a point of contact and

source of information for the growers.

It all starts with the quality of the seed

potatoes. How vital is the tuber that we

plant? Partner PPO examines diseases

and plagues, and the number of buds

per plant. During the course of the year

we look at whether the plants come

up at the same time, counts are made

and the yield is determined. We know

for example that for an optimum yield

three tons of starch per hectare already

have to be produced by 1 July. The yield

measurement is repeated on

1 September. On exactly the same

day, so that the grower can objectively

compare his yield with that of other

participants, a benchmark. Some of the

knowledge that the grower needs for

optimum returns is not new. But not all

of the available knowledge is used every

day in practice’, says Jans Klok. There is

room for improvement on that point.

Not all of the available knowledge is

used in practice

It is certainly a dot on the

horizon

Page 18: ANNUAL REVIEW - Avebe

A market-driven organisation: what does that mean in practice? Malin Morin explains. In her role as Innovation Sales Manager she keeps close tabs on the food market, speaking every day to customers around the world. One of the most important insights she has to offer is this: ‘There’s no sense in launching a new product if our clients don’t want it. It’s important to be driven by the customer wants and needs’.

be anything between six month and six years,

although we strive to make it happen as soon

as possible’.

Malin is in complete agreement with and

supports Avebe’s pay off, ‘Innovation by

Nature’. ‘The potato is a superb natural

product, and it’s in our nature to be creative

and innovative. I’m amazed every day by all

the things that can be done with potatoes.’

The way she sees it, innovation benefits from

a good balance between two things: Avebe

has a strategy that serves as a guide for the

long term on the one hand, whilst on the

other the organisation is able to respond at

lightning speed to its customers’ wishes and

requirements.

Avebe has plenty of opportunities in many

market segments. ‘We can use starches and

proteins to help food manufacturers develop

good quality and affordable food, but also at

the high end, where unique properties such

as indulgent health and “free-from” claims are

being supported.

Some of today’s buzzwords are ‘natural,

healthy and less processed’. Avebe can gain

when people opt for more natural products

and vegan alternatives. ‘It is vital that we

understand what the consumer wants, both

now and in the near future. That’s the key to

what our customers need.’

Avebe claims ‘Innovation by nature’. But

how exactly do innovations, ideas for new

products, come about? This is done in two

principal ways, says Malin. ‘There are people

at Avebe who often come up with brilliant

ideas, and at the same time, there are

customers who can tell us what they need

in terms of new directions to grow their own

business. These are the two main trigger

points for innovation. The bright ideas are

then studied, evaluated, tested and tailored

to see whether existing products of Avebe

can contribute, or if new products must

be created. Sometimes existing products

can be tweaked to bring new performance

characteristics. We need to be careful to

check at every stage that the idea we are

developing has good commercial potential.

Avebe sells starch derivatives and proteins,

but it is very important that we market our

products to the customer as “solutions

to problems” or “new application ideas”

rather than simply powders. We target

many segments in the food business where

our products such as soups & sauces,

confectionary, snacks, meat and dairy

have strong benefits. For example we

are explaining to food manufacturers how

Avebe products can help them to make

end-products more healthy with better

textures or just more affordable for the

end consumer.

Our vision on selling innovation for food

segments is translated into how the sales

department is organised: As we have

ambitious strategic targets related to sales

of innovative products and solutions derived

from the bright ideas, we have put dedicated

resources to this task in order to increase the

speed and scale of success. Regular product

sales, supporting the existing business

and supporting customer derived business

development also requires a lot of time and

energy; we separate the two areas because

the approach to the customer is different and

we intent to get the best overall result.

We operate at the cutting edge of Research

& Development, Marketing and Sales.

That makes it possible for customers and

researchers to inspire each other to come

up with ideas for new products. And that’s

what makes the difference between success

and failure. Developing and selling new

innovations takes time and patience; the

time between sowing and harvesting ‘can

I N T E R V I E W

I’m amazed every day by all the

things that can be done with potatoes

AVEBE SELLS SOLUTIONSmore than starch and protein

A N N U A L R E V I E W

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1 9

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Like our members, we have been committed to the Northern Netherlands region as an employer for many years. We believe as a matter of course that everyone has qualities and value. We do what we can to offer suitable work for as many people in the region as possible.

The government introduced the

Participation Act on 1-1-2015. The purpose

of this is to encourage employers to take

on people who find it difficult to find jobs

owing to a disability. Avebe needed no

encouragement here, because since 2012

we have been making arrangements for

operators at the Foxhol location to be

helped with the cleaning work by people from

this target group. We are currently considering

where more opportunities such as these can

be created throughout the whole of Avebe.

Our commitment in this area has not gone

unnoticed by politicians. The State Secretary

responsible for this is due to pay us a visit to

see in person how we go about this.

The operator, the forklift truck driver, the laboratory technician and of course the farmer: everyone is valuable to Avebe, everyone puts their shoulder to the wheel to help us meet our objectives. And it has to stay that way if possible: these days we all have to carry on working until we’re 67. For that reason a lot of hard work is done on health & fitness at Avebe, on how we can set off cheerfully to work and return home in a good mood too. After all, if the people do well, Avebe does well too.

‘It’s not just a question of whether you eat

an apple a day’, says Giena Klaassens, who is

responsible for HRM operations at Avebe. ‘It

also has to do with getting the most out of your

work. There are three pillars: Competence,

Drive and Health’.

1. Competent – Are you good at your work? Do

you possess the knowledge and skills that

enable you to do your work properly?

2. Driven – do you enjoy your work? Does it

energise you? Are you enthusiastic about

what you do?

3. Health: do you feel fit, and have you got a lot

of energy? Are you happy?

‘Creating job satisfaction, that’s something

that employers and employees have to do

together’, says Giena Klaassens. ‘The best thing

is if employees themselves come up with ideas

and take initiatives. People can indicate what

they need to stay fit & healthy, and Avebe will

support them wherever possible.’ The first

initiatives have already been taken, and Giena

Klaassens is pleased about that. ‘There is a

group of colleagues who come to work by bike

every day, many Avebe people take part in

Groningen’s 4 Mile running event, and others

have decided to give up smoking. Fantastic.’

The employees are on the right track, and so

is Avebe. Various initiatives have been taken

to help employees continue to develop in

their work to help them in their efforts to

achieve health & fitness. ‘We’ve appointed

health & fitness coaches who are coming

to see whether the workplaces are healthy

and safe’, says Giena Klaassens. ‘Also, a

web portal has been opened to provide a

lot of information about sleep, eating and

exercise. And of course the Health Bus is

on the road again. I hope that many Avebe

people will come on board.’

EVERYONE IS VALUABLEGet the most out of your work

The best thing is when Avebe

people themselves take the

initiative

On the right track: health & fitness coach,

Health Bus and web portal

AVEBE NATURALLY COMMITTED ALSO TO PEOPLE UNDER THE PARTICIPATION ACT

H E A L T H & F I T N E S S

A N N U A L R E V I E W

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ONLY TOGETHER CAN WE MEET OUR OBJECTIVES

Page 22: ANNUAL REVIEW - Avebe

E D I T H R O M P

Safety, complaint reduction & energy

EVERYONE HAS TO

TAKE THEIR responsibility

Page 23: ANNUAL REVIEW - Avebe

2 3

Steam is used, forklift trucks drive around the site and hazardous substances are stored. But the biggest threat to safety, says Ter Apelkanaal location director Edith Romp, is formed by old habits: ‘The best results are achieved if people have safe behaviour in their DNA.’ Safety, but also complaint reduction and energy savings are spearhead policies at Avebe. ‘There is a clear link between working safely and working well, and this prevents complaints and lowers costs.’

Avebe is a company with a long history.

Working for Avebe is sometimes virtually

passed down from father to son’, says

Edith Romp. ‘There’s a lot of trust, there

are people who have worked here for more

than thirty years. They’re used to working

in a certain way, and they sometimes

wonder why things suddenly have to be

done differently.’

How safety is experienced has come

to occupy a different position in recent

decades. ‘It’s important that you get home

safe and sound after work. Important to

you, your family, your friends and your

colleagues’, says Edith Romp. How do you

achieve that? A process has been started

to increase safety awareness. Machinery,

systems and procedures play an important

role in this; they have to be right.

Does that mean that safety is mainly a

technical matter? No, replies Edith Romp.

‘It’s above all a question of attitude and

behaviour. It’s about how you work and

how you cooperate. Confronting each

other on unsafe behaviour, learning from

each other. Confronting each other isn’t

easy. We sometimes hear someone say: “...

but I wasn’t taken on here as a policeman

was I?”. But not protecting your colleagues

and yourself against dangerous situations

at work isn’t macho, it’s stupid. We have

to make it easier to talk about safety. That

why time has been set aside for talks

about safety: ten minutes a day at each

department. Safety inspections are also

carried out every day, because ‘we have to

make sure that people get safety in their

DNA’, believes Edith Romp. ‘We work with

people, and this takes time.’

It’s clear that Edith Romp puts people

first when it comes to safety. But she

emphasises that there is also an economic

aspect to unsafe situations. Every incident

costs money, it’s as simple as that. Extra

activities are always needed, such as

repairs, interruptions, process restarts,

and so on. And then there’s the possibility

of products that fail to meet customer

requirements. And that can lead to

complaints.

Edith Romp stresses the point that most

of the complaints are less to do with

the product specifications, because

everything is completely checked

before delivery. So what do customers

complain about? About the packings,

and sometimes dirt in the container.

‘We have to take a very close look at

our logistics, packings and transport’,

she concludes. Avebe wants satisfied

customers and is taking a vigorous

approach to reducing complaints. The

cooperative has a programme manager,

and the locations have teams that

working on reducing complaints. They

are multidisciplinary teams; all relevant

people and departments are represented:

logistics, production, procurement

and commerce. The teams analyse the

complaints, identify the causes and make

an action plan to eliminate the causes of

complaints. Progress is discussed in the

Ter Apelkanaal Management Team once

a quarter. Another spearhead in Avebe’s

strategy is energy, or to be more precise,

reducing energy consumption. Edith Romp

is completely honest about this: ‘The Ter

Apelkanaal site is currently not meeting

the objectives. This has to do with the

availability of manpower. We all have to

make choices now: what are we going to

work on, and when? Calling in experts

doesn’t always help: hiring people from

outside only solves part of the problem.

Ultimately you always come back to your

own people’.

But the first steps have now been taken at

this location in Ter Apelkanaal. An action

plan has been drawn up for the coming

year. ‘We use a great deal of steam, and

recycling heat could result in a huge saving.

That will involve installing heat exchangers.

Once they’ve been taken into use we’ll be

making a substantial contribution to the

energy saving objective’.

The first steps towards energy

savings have been taken

Complaints are never about the specifications,

because everything’s

completely checked

It’s important that you get home

safe and sound after work

Page 24: ANNUAL REVIEW - Avebe

This annual review was commissioned by Avebe and is sent to all members and employees of Avebe.

The complete annual report can be downloaded at www.avebe.com.

A hard copy of the full annual report can be obtained from your account manager

or via [email protected]. Cooperative AVEBE U.A. Veendam

The figures given in this annual review are an extract from the financial statements published

during the members’ meeting on December 16th 2015.