News Milk
Dairy group Sodiaal is reorganizing and investing
The French dairy cooperative Sodiaal is going to reorganize and stop or limit overcapacity and loss-making UHT and infant nutrition activities. At the same time, it will invest €600 million over the next five years in more profitable products and new markets.
Sodiaal reports that therefore two of the seventy factories will close and also cut 316 jobs. One of the two factories is the UHT factory in Campbon. In addition, the closure of a children's food factory is being considered, while towers and production lines will be shut down at two more locations. Sodiaal also wants to divest the production of sweetened condensate and sell the factory to the only customer.
Sodiaal, producer of the well-known yogurt brand Yoplait, cites the continuing decline in sales of long-life milk as the reason for these interventions. This product is being bought by fewer and fewer consumers. The market for infant nutrition (ingredients) is also suffering from an oversupply and therefore falling prices. The resulting losses the French dairy cooperative no longer wants to bear.
More money for consumer dairy
Parallel to the phasing out of activities, Sodiaal will invest in other branches of sport. For example, it wants to allocate €450 million to acquire a stronger position in consumer dairy, using more attractive cheeses, premium milk drinks, butter, cream and fresh dairy. Sodiaal also wants to complete the sale of the Yoplait brand. In addition, Sodiaal wants to allocate €150 million to strengthen its position in the ingredients business. An increased emphasis will also be placed on export markets.
Sodiaal hopes to be in a strong position towards 2030 with these adjustments. The company draws hope from the expectation that worldwide dairy consumption is expected to increase by another 2030% until 9.
Social is the largest French dairy cooperative with 17.700 members and a supply of just under 5 billion liters of milk.
Klaas van der Horst
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