FrieslandCampina cuts production Borculo

FrieslandCampina wants to scale down the production of baby milk powder in the factory in Borculo. That as a result of overproduction now that Chinese demand has fallen sharply. The intended decision means that XNUMX people will lose their jobs.

Sales of baby milk powder are under pressure as China's declining birth rates lower volumes imports. The result of this is that the factory in Borculo is struggling with overcapacity. FrieslandCampina has decided to scale down the five-shift operation to a three-shift operation, according to an internal memo. The fifteen employees for whom the curtain falls have now been informed.

According to a FrieslandCampina spokesperson, these are temporary workers and the flexible shell of the company is being cut. The amount of milk that is processed in the ingredients factory in Borculo is relatively limited compared to other factories. 

Demand structurally lower
The layoff round comes on top the austerity plan that FrieslandCampina unfolded at the end of last year and is still running. In this, 1.000 of the 24.000 jobs will be remediated. The baby milk powder production in Borculo was scaled up considerably six years ago when the market conditions were promising. CEO Hein Schumacher recently announced that good Chinese demand will not return, partly as a result of stiff competition from local players.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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