More profit for FrieslandCampina with less milk

This article was last updated on July 24, 2024

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More profit for FrieslandCampina with less milk

After a period of heavy weather, dairy giant FrieslandCampina is getting back on its feet, according to the company’s half-year figures. The milk producer has seen profits rise to 183 million euros in the past six months.

Yet milk is no longer sold. The collaborating farmers supplied approximately 4.5 billion liters of milk, more than 3 percent less than in the same period.

Six months ago, FrieslandCampina’s profits collapsed almost completely due to high production costs, high wages and a high milk price for farmers. A meager 8 million euros profit remained. The poor figures heralded a major round of layoffs for 1,800 employees.

More than milk

Due to a lower milk guarantee price, dairy farmers are now paid less per liter than six months ago, leaving FrieslandCampina with more at the bottom line. According to the company, farmers are compensated by higher surcharges on top of the fixed price.

In addition, the offer is changing. The manufacturer makes a lot of money with baby milk powder, medical milk products and protein-rich sports nutrition. The Asian market is also picking up strongly again, after difficult years due to corona and export barriers.

The company also says that cuts are being made successfully. The round of layoffs, which would also involve 900 Dutch employees, is now in full swing. More than 1,100 full-time jobs have already disappeared within the company.