Millions loss for RFC in Pakistan

FrieslandCampina Engro Foods Pakistan recorded a loss of €9 million in the first 2019 months of 4,6.

The results clearly show a spring, because in the same period last year, the Pakistani Activities of the dairy cooperative for a profit of almost €3 million. This while the turnover in the first 9 months of this year grew by 20% to €164 million.

This growth in turnover has turned out to be somewhat flattering, however, because the selling prices of dairy products have been increased by the devalued Pakistani rupee.

Increased competition
The reason for the reversal lies in rising costs. Analysts also attribute the loss to increased competition, which is putting pressure on margins. In 2016 FrieslandCampina entered the Pakistani milk lake, because of the growth potential in that market.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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