'We are a new player on the market'

Cheese is in the genes of Jan Anker, CEO of dairy company Royal A-ware. The family business has been trading cheese and other dairy products for generations. Since 2015, the company has also been making cheese itself. "We are a relatively new player on the market."

Royal A-ware was created in 2010 from a merger between Anker Cheese and Bouter Cheese and is located in Almere (Flevoland). Since 2015, A-ware not only trades, matures and transports, but also produces itself. "Our company originated from the cheese trade. That is why we are different from other dairies."

Why did you set up your own cheese factory in Heerenveen?
"Choosing our own cheese factory was a big step. At the time, we saw that the market was changing and the playing field also changed. We chose to make cheese ourselves, so that we have more control over the quality, in order to have a short, efficient chain and to respond quickly to the wishes of the customer. In addition, it strengthens our story to come up with our own product."

What characterizes your cheese factory?
"We have set up the cheese factory in such a way that we are flexible and can produce according to traditional methods. We have simultaneously purchased many innovative techniques, which means that we have several lines. These production lines can run independently of each other. We can adjust the different types of milk flows (organic, meadow milk and conventional milk) separately into cheese."

Will A-ware keep its focus on the cheese market?
"Yes, cheese is our core business. We market more than 200.000 tons of cheese every year. We make half of it ourselves and buy the other half. The mix of production, customers and volume feels good to us at the moment. Innovation is important to us, both for innovation in our products and for innovations in the processing process."

How does A-ware respond to the volatile cheese market?
"After the abolition of the milk quota, the dairy market has become more volatile. We had already taken this into account in our business strategy. We try to diversify our products and markets as much as possible. We also have a permanent core of dairy farmers who supply directly to our cheese factory. in Heerenveen and at the milk factory in Coevorden. Our company is organized in such a way that we have a flexible shell around that solid core."

How many dairy farmers deliver directly to you?
"Several hundreds of dairy farmers from the 5 most northerly provinces. A dairy farmer from the south of the country cannot join us, because we don't collect milk there. We have grown in the past year. I don't want to say exactly how much. I want to say that towards 2019 there is still room for new dairy farmers."

You work in a demand-oriented way. Do you direct your dairy farmers to meet demand?
"No, our dairy farmers are free. For example, we do not oblige them to graze the cows. Farmers already have so much to do with the government. We leave the choice of whether or not to participate in certain programs entirely with the dairy farmer. They are self-employed entrepreneurs and that's how we treat them."

Are you, like FrieslandCampina, considering a discount on too much milk produced?
"No, absolutely not. We can process all milk supplied. We are also not afraid of production peaks or troughs. We do notice that the possible standstill of FrieslandCampina is causing a lot of commotion. We are called daily by member dairy farmers who are considering to switch."

What is your expectation for 2018?
"The cream price has been very high and it will fall in response. This also applies to the milk price. Production is increasing in Europe, the United States and Oceania. There is still 400.000 tons of skimmed milk powder above the market. We remain positive about the developments, but it does mean that we have to continue to pay attention."

This interview is a shortened version of the recently published interview with Jan Anker in 'Zuivelmarkt De Analyze 2017'. Click here to still receive the magazine.

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