Background a-ware
A-ware Belgium is looking for milk in the southwest of the Netherlands
For dairy production in Belgium, Royal A-ware will now also explicitly focus on increasing the number of dairy farmers in the southwest of the Netherlands. Belgian dairy farmers are also still welcome as suppliers. "We are not here for the short term and want to grow sensibly," said CEO Jan Anker yesterday (August 30) at an open day that the company organized together with Lely and genetics producer Semex.
During the open day at a dairy farm in Kaprijke, Flanders, the CEO, flanked by Luc van Hoe, director of the dairy business in Belgium, addressed a group of at least two hundred interested dairy farmers. A-ware has grown rapidly not only in the Netherlands, but also in Belgium. In just two years, the company has grown into the second largest milk processor in Flanders. The adventure started at the end of 2020 with the acquisition of the milk powder activities in Aalter. This year the dairy installations of Hollebeekhoeve and dairy company Olympia were taken over, for which the authorities have now given the green light. With this expansion, the search for milk continues unabated.
Van Hoe does not necessarily want to speak of a search for suppliers. According to him, the influx in recent years has been very smooth. "Many Belgian dairy farmers were looking for a different processor for various reasons and were welcome to join us. The average annual supply from the current suppliers is 1,5 million, which means that Royal A-ware has recruited many large dairy farms. "But smaller dairy farms are also welcome . We are mainly looking for enterprising farmers who want to take steps together with us."
Extra powder production in Aalter
Major investments are currently being made in milk powder production in Aalter. Production will be further ramped up from 2023. In Kruibeke, A-ware will mainly focus on private label production, in which the company sees music in times of high inflation. In that respect, Royal A-ware is giving its own twist to the acquired activities.
Luc van Hoe (director milk business Belgium)
The CEO of A-ware indicated that he finds the Belgian market very interesting. "I have been doing business in Belgium for years and we have also had our own production here for a few years. We are certainly not here for the short term and want to grow sensibly." Yet the short term is also important, the stove must smoke. He explained a number of aspects that potential suppliers can expect. For example, the milk price is announced prior to the month, so that suppliers have clarity about what is coming in. In addition, the milk price is paid out twice a month as part of the cash flow. And capital investment is not necessary, as A-ware is a private company. "A dairy farmer can better invest this money in his own company." Twice a year there is a meeting, which he himself chairs, in which the milk suppliers are updated.
In the search for milk for production in Belgium, A-ware will now also focus on the south-west of the Netherlands. Dutchman Bas Rijk, former COO at the Belgian dairy producer St. Paul and recently employed by Royal A-ware, is the point of contact for this area. "Until now, A-ware only focused on dairy farmers in the Northern and Central Netherlands for production in Heerenveen and Coevorden. This is now being added to the Southwest Netherlands. There are about five hundred dairy farmers in this area, Rijk knows." We are aiming for a nice influx, although he does not want to limit himself to numbers. In any case, these plans give the search for Dutch dairy farmers a new impulse. After all, many dairies are looking for new suppliers, prompted by the shrinking milk supply.
Milk price can take another step
The CEO of A-ware is reasonably optimistic about the milk price. However, the tension in the dairy markets is noticeable due to the high prices. "I used to think I was a good judge of the market, but the current sentiment is erratic and volatile." Nevertheless, he sees a 'healthy good undertone'. He bases this on the tight stocks. In addition, the low euro-dollar exchange rate is favorable for distant exports. At the same time, buyers are hesitant and costs have also risen high. "I don't expect the milk price to take big steps of 3 to 4 cents, but a plus might be a possibility."
Wouter Job
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