News Closure
Milcobel puts a stop to loss-making location
The Belgian milk processor Milcobel announces that it is closing its milk drinks department in Schoten. At the beginning of this year, the processor started a transformation process in which the company is examining improvement and savings potential. The outdated location in Schoten does not meet the requirements of this plan.
The transformation process should stimulate the profitability of the dairy cooperative, so that a better milk price can be paid to the member dairy farmers. Since production in Schoten leaves something to be desired in terms of profitability and considerable costs have to be incurred to bring the outdated location up-to-date, the board has decided to divest the factory.
To run at a loss
The location is used to make milk drinks like Inza, Choco! and Yogho! to produce. The latter has not been profitable for years. According to Milcobel, the corona crisis has shown that profitability cannot be boosted by increasing the volume. With the closure of the factory, 167 jobs are at stake.
The closure comes at a clever moment, because 60 angry dairy farmers protested against Milcobel's low milk price at the location in Langemark the day before. Speaking to the dairy farmers, management said that ambitious reform plans will be presented at the end of October. Milcobel may have chosen to implement this closure earlier in order to gain confidence.
Change
Not only production in Schoten will be stopped, all associated support services in Schoten and Bruges will also be phased out. The only product that manages to escape the closure is the drinking milk in glass packaging, which is sold under the 'Inza' brand.
Jorine Cosse
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