Milcobel cuts costs for a better milk price

The Belgian dairy cooperative Milcobel is going to cut costs. The number of top positions will be reduced from 11 to 8. The purpose of the savings is to achieve a higher milk price for the member dairy farmers. 

The new turn, as the dairy cooperative itself calls it, has been shaped by the recently took office CEO of Milcobel Nils van Dam. The slimmed down organization is based on separate departments: 'Consumer Products & Service', 'Dairy Products & Ingredients' and subsidiary YSCO. 

Hand on the cut
According to Van Dam, the restructuring will save 10% on top management costs. The savings are also extended to other parts of the organization. The aim is to reduce fixed costs for both this year and 2021. "Our ambition is to save 5% on our fixed costs this year, for 2021 I aim to save at least 10%." 

Milcobel wants to achieve better financial results with the cost savings. The Belgian dairy cooperative has been underperforming for some time, resulting in a low milk price for the approximately 5.000 member dairy farmers. As a result, the former CEO and the board chairmen of the cooperative were killed.  

Chanti Oussoren

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets.

c.oussoren@boerenbusiness. Nl

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