Strategy is strength
Schumacher takes on challenge as CEO
Hein Schumacher has taken over the role of Roelof Joosten, CEO of FrieslandCampina. His first public appearance as CEO will not take place until February 22, but there is already a lot to do. There is a lot of unrest among dairy farmers, but the job loss outlined by the media is also causing a stir.
"A number cruncher with an antenna for farmers' interests", is how the Financieele Dagblad (FD) describes the new CEO of FrieslandCampina. While 59-year-old Joosten is described more as an entrepreneur, Schumacher's strength appears to lie in strategy. The FD also refers to his background in political science.
Worked closely with Joosten
On February 22, at the presentation of the annual figures, his first public appearance will take place. He is no stranger, because he previously took a seat next to Joosten in his position as financial director (CFO). He therefore worked closely with him and they, for example, jointly drafted the new strategy project.
After the departure of Cees 't Hart, Joosten, who worked for about 10 years on expanding the 'ingredients' section, was given the challenge to lead the cooperative into the quota-free era. The challenge turned out to be greater than providing a good milk price; this is due to the manure problem. The aim of FrieslandCampina was to secure the supply of raw materials, in the form of maintaining the derogation.
At the same time, the discussion about grazing was started in 2011, which created the first rifts between the shareholders (dairy farmers) and the board of FrieslandCampina. Joosten did his best, but the cracks grew into a chasm. Dairy farmers would rather opt for a lower milk price than deliver to a cooperative where they did not feel heard.
Experience as a political scientist helps
So it is possible that the 46-year-old Schumacher will take over from 1 January. Strategy, consumer goods and change management are the 3 qualities he is most appreciated for on LinkedIn. The FD even estimates that his experience as a political scientist will benefit him more than his financial education. Schumacher's own advice to young drivers was therefore: it is better to come up with alternatives than to aim for a firm 'no'.
Can he win back the love of the dairy farmers and thus close the gap? Cooperative chairman Frans Keurentjes did not lessen the challenge with his statements about group and tie-up stables and dealing with members. However, this is definitely a determining factor for the success of a cooperative.
Winning in the market
Meanwhile, on Wednesday 3 January, it was announced that jobs may be lost at FrieslandCampina. It turns out to be a bit more nuanced than outlined. For example, the company announced the structure in August to simplify, especially from the central organization and business groups. Those groups are: Consumer Dairy, Specialized Nutrition, Ingredients and Dairy Essentials. "In this way we want to be sure that we 'win in the market'." This concerns 100 employees whose position changes or will be cancelled. If the position expires, management within the company tries to find an alternative position.
To work more efficiently
Other matters are at play in Bedum and Meppel. There, efficiency is linked to growth in value-added production. This has been done since 2015 under the WCOM (World Class Operations Management) program. This means that in Bedum between 3,5 and 20 jobs will be lost over a period of 30 years, 50% of which are temporary workers.
In Meppel, between 30 and 35 jobs will disappear. Here too, half consists of temporary workers and this concerns a period of 3,5 years. It is mainly a result of working more efficiently. "But if sales grow, jobs can also be created," said Jan-Willem ter Avest, spokesperson at FrieslandCampina.
The changes within the cooperative will continue, in order to guarantee that FrieslandCampina can keep up with companies such as Nestlé and Danone. Schumacher helped draft the strategy, but will now first have to ensure peace within the cooperative in order to be able to roll out the strategy further with velvet gloves. This is to keep society, dairy farmers and employees on board.
Herman van den Pol
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