Dutch dairy cooperative FrieslandCampina aims to achieve annual cost savings in the range of €400 million to €500 million from 2026, by implementing a new business strategy.
The Expedition 2030 business strategy seeks to improve profitability and drive sustainable future growth by focusing specifically on each business group, the company added.
It will use a part of the savings to offset inflation and divide the remaining portion equally – between investments in sustainable growth and increasing the company’s net profit.
However, the cost-saving plan will not concern the closure of production locations.
Jan Derck van Karnebeek, CEO of Royal FrieslandCampina N.V., said, “Our goal is clear: produce top-quality products from our members’ milk and, by doing so, generate maximum value for them – income that our members need to continue investing in the sustainable future of their farms. That is why it is so important that we structurally improve our business performance.
“Our sharpened strategy – with a focus for each business group on specific customers, products, brands and markets – will significantly improve the way we work and compete.
"Combined with a competitive supply chain and lower overhead costs, I am convinced that Expedition 2030 will strengthen our position as a leading, innovative and sustainable player in the dairy industry."
FrieslandCampina added that it will focus on areas where the company plans to grow.
The investment will enable its Ingredients division to meet the growing demand of ingredients from sports and infant nutrition companies.
The dairy cooperative will announce the organisational implications and associated one-off restructuring costs in mid-December.
The implementation of the Expedition 2030 strategy is planned from 1 January 2024, the company noted, with all proposed decisions subject to Central Works Council advice.