'New milk flow offers opportunities in the dairy trade'

Setting up an ingredients branch does not really sound logical for a cheese company, why this step?
“This can be the next step be for Vandersterre. We are a family business and have been active in dairy for generations. We always try to keep developing. Initially, we mainly supplied cheeses to market traders in our own country. We started exporting in the late 80s, the first 10 years only in Germany and the last 20 years we also supply the rest of the world. Consumer trends are changing quickly. In the past, everyone's cheese was still under a bell, but nowadays young people hardly know what a cheese slicer looks like. A lot of cheese is still consumed, but in a different way. We try to respond to that, otherwise you no longer have a right to exist. With our experience in dairy and knowledge of consumer trends, we also think we can make a difference in other raw materials such as butter and milk powder. We like doing business at Vandersterre and with Dennis van Huet we think we have the right man to set up the ingredients branch."

The focus is on value creation and unique raw materials, can you make this concrete?
"We focus on the top end of the B2B market. There is usually more margin to be made there than in the bulk market. You should think of dairy products whose raw material is slightly more special than just stable milk. This is in line with the rise of new milk flows that are aimed at sustainability requirements, that offers opportunities in the trade. At Vandersterre we also have good relationships with cooperatives that are also taking that path, such as Cono Kaasmakers, CZ Rouveen and FrieslandCampina. In our view, value creation arises through partnerships, in which our The role is to relieve milk processors of their sales concerns."

From a sustainability perspective, do you also see bread in vegan dairy?
"As a cheese company, we were initially skeptical about vegan dairy, but we now see it differently. Look at the rise of organic dairy and goat cheese. That used to have a woolly image, but no longer. The mindset has changed. Consumers are increasingly aware the climate and therefore sometimes switch to vegan and that offers opportunities. Don't get us wrong, vegan is an alternative, but it is not the same as regular dairy. In that respect, meat is a good example, despite the rise of meat substitutes, meat consumption continues to rise worldwide. "

Dairy farmers sometimes see dairy trading companies, to put it derogatorily, as profiteers. Is that criticism justified?
"No. Of course, trading houses are busy making money, but they also play a crucial role in the chain. The Dutch dairy market is known worldwide for high quality, but also for its surpluses. Trading houses provide a large part of the sales and thus fulfill an important role in the value chain. Without trading houses there would be less exports and therefore more product and therefore less room for a good milk price on the domestic market. To put it bluntly, we as Vandersterre are not a box pusher, but a conversion company. Although we do not sell the cheeses we produce ourselves, we process them into end products and thus add value. We have great appreciation for the dairy farmer profession. I was recently on a primary farm, but I literally did not experience much of it. Dairy farmers, processors and trade have together made the Dutch dairy sector what it is today."

What do you expect from 2021, how big will the impact of corona be?
"The impact of the corona crisis on the dairy trade is significant. Due to the uncertainty, purchasing moments are postponed and trading is therefore mainly done in the short term. With a vaccine, better times will probably come, although we will still be affected by the aftermath for a while." of the pandemic. Let us not lose sight of the bright spots as a sector in these times of crisis. The world population will grow from 3 to 7 billion people over the next 9 decades and dairy consumption per person is still increasing. Perhaps not in the Netherlands, but certainly in other parts of the world. Dairy is a basic necessity, the consumer is a customer 52 weeks a year."