Expedition 2030

Date: 06.10.2023Source: FrieslandCampina

Today, FrieslandCampina announces its sharpened business strategy Expedition 2030. The strategy is characterised by a specific focus for each business group and is aimed at improving profitability and driving sustainable, future growth. As part of the strategy, the company will annually save 400 to 500 million euros in costs from 2026.

Jan Derck van Karnebeek, CEO Royal FrieslandCampina N.V.: “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. This is important for FrieslandCampina to remain attractive to its member dairy farmers, employees and customers, now and in the future.”

Cost savings
To strengthen FrieslandCampina’s competitive position, Expedition 2030 focuses, among other things, on annual cost savings of 400 to 500 million euros from 2026, with significant savings starting in 2024. The entire company has to reduce costs, with the main focus on the support functions. This will result in restructuring and job losses. The 400 to 500 million euros in cost savings do not concern closure of production locations. A part of the annual savings will be needed to off-set inflation. The remaining margin expansion will be equally divided between investing in sustainable growth and increasing the company’s net profit.

Investing in sustainable growth: Borculo
FrieslandCampina will continue to invest in strategic activities in which the company wants to grow. In this context, FrieslandCampina today announces that it will invest in the production facility in Borculo, the Netherlands, to double the production capacity of whey protein isolates. This will enable the business group Ingredients – a global leader in proteins and prebiotics – to meet the growing demand for high-quality ingredients for the sports and infant nutrition markets.

Next steps
The intended cost savings will be further detailed in the coming months. FrieslandCampina 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. All proposed decisions are subject to Central Works Council advice.


Photo: FrieslandCampina

Roland Sossna / IDM

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