The Dutch dairy company FrieslandCampina is going to undergo major reorganization. The group wants to save 400 million to 500 million euros annually. Jobs will also be lost. The company mainly wants to save on support functions and says that it will not close any production locations. FrieslandCampina has several sites in Belgium.
The group announced this summer that it would take a critical look at costs, after disappointing half-year figures. With the reorganization, FrieslandCampina wants to improve profitability and focus more on sustainable growth. According to CEO Jan Derck of Karnebeek, the intervention at the company is necessary to “remain attractive to member dairy farmers, employees and customers”.
It is still unclear how many jobs will disappear. The intended cost savings will be further developed in the coming months. The entire company must make cuts, with the focus on the support functions. However, production locations will not be closed, according to FrieslandCampina.
Compensate for inflation
According to the group, part of the annual savings will be necessary to compensate for inflation. The remainder will be “proportionally divided between investing in sustainable growth and increasing the company’s net profit.”
The dairy company saw net profit fall by more than 94 percent to 8 million euros in the first half of this year. Profits were mainly depressed because the milk price that FrieslandCampina paid to dairy farmers in the past six months was much higher than the sharply decreased market prices for dairy products.
FrieslandCampina is one of the largest dairy cooperatives in the world, with more than 15,000 member dairy farmers in Belgium, the Netherlands and Germany. The group had 22,715 employees worldwide last year, including approximately 1,250 in Belgium. In addition to a commercial office in Ghent, the dairy giant has production sites in Aalter, Bornem and Lummen. They specialize in the production of long-life milk and dairy drinks, cream and desserts. The cooperative is known for brands such as Campina, Joyvalle, Cécémel and Fristi.
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2023-10-06 08:58:32
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