Second corona wave hits FrieslandCampina firmly

The second corona wave that has left its mark in the European Union and other continents also has a significant impact on FrieslandCampina's results. For example, sales to oil-producing countries such as the Middle East have largely disappeared.

Frans Keurentjes, chairman of the Supervisory Board of FrieslandCampina, said this on Monday at a digital meeting with the trade press. The Middle East is an important sales market for FrieslandCampina, but because oil income is falling as a result of the corona crisis, much fewer orders are being placed from this area. "That also has an impact on our results," says Keurentjes.

In the Netherlands, in the dairy sector, just as with chips, for example, there is a shift from the foodservice (catering) to retail (supermarket) sales. This also represents a challenge for FrieslandCampina that cannot take place without being unscathed, Keurentjes hints. But disruptions in the chain and transport lines also lead to cost increases, according to him. 

Violent price movements always bad
Keurentjes also points out the risk of strongly fluctuating prices of basic dairy products (milk powder and cream). "Violent commodity price movements are always bad for business and business." The problems with entering the Chinese market via Hong Kong are not over yet. The border is closed due to the corona crisis. For example, the infant food of the Friso brand suffers from this. "We are therefore busy developing other sales channels, which is happening step by step," says Keurentjes.

The chairman of FrieslandCampina does not want to say what consequences this has for the milk price, although that effect can be guessed. The dairy group is looking at how it can sail even more closely on the cost side. For example, spending on marketing and promotion has been reduced and efforts are being made to save on sales and general management costs. The further optimization of the factory network and the structural increase of productivity are also being considered.

Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

e.delijster@boerenbusiness. Nl

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