News Dairy export
Unrest in Hong Kong affects FrieslandCampina
FrieslandCampina is suffering from the unrest in Hong Kong. Hein Schumacher, the CEO of FrieslandCampina, speaks of a considerable blow for sales. In addition, there are also problems elsewhere in the world that affect the result.
According to the CEO, Hong Kong is an important market for the Netherlands. The cooperative does not disclose the amount of turnover generated by sales there, but according to Schumacher it is a 'substantial share'. Both in baby food and on the consumer market.
The Black & White brand is popular among Hong Kong residents and is widely consumed in so-called 'tea houses'. However, due to all the protests over Hong Kong's autonomy, these are closed. And that affects sales. These protests are also noticeable in practical terms. For example, the head office of FrieslandCampina, which is located in the middle of the city, is difficult to reach.
To be seen in results
There are also difficulties in other markets. Indonesia, for example, has a trade dispute with the European Union regarding palm oil, after which the country has increased the import tariffs on dairy from the European Union. The United States will soon also apply import duties on European cheeses† This is in retaliation for the alleged European state aid to the German aircraft manufacturer Airbus.
Brexit is also imminent. The effect of this is relatively small, according to Schumacher, with an annual export interest of €250 million. FrieslandCampina expects logistics delays in particular. According to him, it is likely that the effects of the incidents are reflected in FrieslandCampina's results.
Wouter Job
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