Out with the old & in with the new…
Posted on
05/10/2011
in
News
By the time you have finished reading this article, we
will have moved over to new harvest main crop which brings with it
its own tidings. The good news is that potato prices have come down
from the dizzy heights of almost 340Euros/tonne, last seen early
this year, to a more moderate level in line with our expectations.
This is vitality important for all of us, as I read that food price
inflation is still at a record high, as stated by FAO (United
Nations Food & Agriculture Organisation). Whilst the main crop
looks good (see potato crop update) we will continue to adjust our
processing techniques so that we can deliver consistent quality
products for our customers, in line with our promise on value for
money.
With new season tenders being re-negotiated in the next 4-8
weeks, the questions facing a lot of our customers at the moment is
whether to go for a fixed 12 month contract or shorter term,
perhaps quarterly agreements. With the potato price yield curve
moving to normal levels, shorter term agreements could mean lower
average prices over a 12 month period compared to an outright 12
month fixed price agreement. This however carries its own risk, for
example changes in potato prices in the weeks/months to come driven
by supply & demand, as well as sentiment and volatility in
currency movements, which can have a big impact on the final price.
In line with your business requirements, Aviko will continue to
offer both options at all times, working with you to make sure that
we support your business by delivering consistent quality products
at competitive prices.
This quarter's newsletter focuses on British Food Fortnight,
where we look at how the humble potato features in a lot of the
classic British dishes. The newsletter also highlights the new
recipes that we have now uploaded on our website, inspired by
industry chef's suggestions. I would also like to take this
opportunity to congratulate Nigel Grayson from 7 Day Catering, our
iPad2 competition winner, following our free prize draw for new
sign-ups to this newsletter.
I trust you will find this update as informative as ever. We are
always happy to receive feedback/suggestions/ideas from our
customers, so please feel free to get in touch with me directly at
m.essa@aviko.com or through
our customer service centre at ukhelpdesk@aviko.com
Thank you for taking the time to read through this
newsletter.
Mohammed Essa, General Manager Aviko UKI