Analysis Dairy
Milk shortage at Jumbo is an excellent PR sector
And then the milk was promptly finished at Jumbo. A shortage of milk in the dairy superpower of the Netherlands is the same as that the French have run out of wine or that Saudi Arabia has an oil shortage. The social commotion was great. The alleged milk shortage turned out to be a storm in a teacup, but it is worth thinking about. Milk still appears to be a social lubricant.
"Milk is good for everyone" is the advertising hit from the 60s, which has become less and less popular in recent years. The consumption of milk and dairy products is increasingly being discussed in the Netherlands and other Western countries due to environmental concerns. That discussion is so serious that dairies today are massively jumping into the vegan dairy market. Obviously to anticipate growth markets, but above all not to be superfluous in the future.
Milk, toilet paper and tap water
For dairy farmers in our country, who operate under the strictest environmental standards at Champions League level, the rise of soy milk and the like is terrifying. They can business model what has been successful for generations should not suddenly be thrown overboard. Although this is sometimes suggested that way by some politicians. In that context, the social outcry that arose last Saturday when consumers misunderstood was perhaps the best PR the sector could wish for. The silent majority began to speak. Just like toilet paper or tap water, milk is a matter of course in our country. According to Albert de Groot, vice-chairman of the Dutch Dairy Organization (NZO), such a moment makes the importance of milk clear.
Spokesperson for FrieslandCampina
Jumbo blamed Campina for not delivering. In another branch, the large gritter hid behind the drought, which meant that milk production in our country would falter. The latter is indeed true, but it is a cheap argument. Milk production is a few percent lower than in other years, but this does not suddenly mean that the factories no longer have a supply. Moreover, only less than 10% of the milk production in our country is processed into drinking milk. That flow doesn't just disappear. Just like the water level on the Rhine may drop, but the river never runs dry.
'Fittie' about price?
When asked, FrieslandCampina informs us that delivery problems are not an issue, without going into further detail. What it probably sticks to is the price. For years, retailers could buy milk fairly cheaply, but those times seem to be over. Due to the shrinking milk production and good sales opportunities worldwide, the milk price has now risen to above €50, a ceiling that was considered unattainable in the past. The significantly higher prices are also the new reality and retailers have to get used to it. Previously there were empty dairy shelves in Germany, because retailers did not want to accept the price increases and thus missed the mark.
This may also be the case between FrieslandCampina and Jumbo, although both parties agree on the record of course not confirm. There are reports in the dairy market that milk processors and buyers have recently had a 'fitness' about the price. Retailers are hesitant to pass the price increases on to consumers. Like the case of beer, milk is apparently a crowd pleaser that must remain affordable. For the consumer, this is very pleasant in times when high inflation makes many things more expensive, although this is of course not possible without a large dairy farm. In that context, Jan Anker, CEO of A-ware, says: "It is important that the farmers receive a fair price for the milk. It is not self-evident that there is always enough milk."
On Monday, a photo with a new statement from Jumbo was circulated on social media. Caroline van der Plas, leader of BoerBurgerBeweging (BBB), among others, posted this announcement from the Jumbo in IJsselstein on twitter. In it, branch manager Ruben Metselaar makes it clear that there are delivery problems, but emphasizes that there is no shortage of milk. "Logically, a cost-effective price must be asked, which is just not paid," he explains.
Klaas Van der Horst is co-author of this article.
Wouter Job
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