In the coming years FrieslandCampina wants to increase profitability so that a performance price of 4 to 5 euros can be paid in addition to an average guaranteed price of 36 euros per 100 kilos. This would require a number of further operational improvements and investments in countries such as Indonesia and Malaysia. CEO Hein Schumacher stated this in a webcast.
Schumacher unfolded his plans ahead of a discussion with members on the proposed member funding adjustment. The dairy group’s CEO painted a positive picture of FrieslandCampina’s prospects, with a strong position in the Dutch market, an expected recovery in profitability this year in Germany and particularly good returns from a number of key markets in South East Asia.
He pointed to Indonesia, the Philippines and Malaysia as the export markets currently bringing in the most profit. In China, on the other hand, the company is struggling with a sharp decline. Nevertheless, the company still sees opportunities for profitable sales of infant nutrition there, but with an even stronger focus on the top segment. The target for the Consumer Dairy division is to increase the value of milk by 20 %.
The statements are based on the assumption that milk supply will remain unchanged, but also take into account that supply will decrease by several dozen percent by 2030.