With Cono back to top milk price comparator

Griep has worked in the food sector almost all his life. Griep, who lives in Amsterdam, started his career in logistics at the port of Rotterdam, but decided to continue his studies. He did an MBA in England in the early 90s and subsequently worked for major tea and coffee companies, including in South Africa and Malawi. He has now been with Cono for over ten years and he enjoys driving every day to the reclaimed land just north of the capital.

You are entering challenging times...
"You can say that, yes. Cono's organization is rock solid, so in that regard there is a solid foundation to build on. We are a relatively small cheese company, but with a big impact. In terms of sustainability, we are in the the leading group in the dairy sector and we want to remain there. This is what drives our brand strategy, which is also in line with social trends. The sustainability issue in the dairy sector is extremely complex. Indicators regarding animal welfare and the environment sometimes conflict with each other. Ideally, the cows walk as much possible outside, but in the context of emissions this is not always favorable. The trick is to find an optimal balance. These are also challenging times in the market, with recently high cheese prices and food inflation. In the meantime, sentiment has turned. The lower milk prices and the uncertain government policy illustrates the complexity of our members. The continuity of a dairy farm is perhaps the biggest challenge today."  

How do you respond to this?
"By not waiting for an Agricultural Agreement or whatever, but by staying in the driver's seat. We are the market leader in branded cheese and so you can expect responsibility. We have therefore set a target on the horizon, with the ambition to our cheese is climate positive. This means that we capture more CO2030 than we emit. Throughout the entire chain, so from cow's mouth to store shelf. This is not easy to organize, but you have to start somewhere. A good example is our electric RMO, which made us the first in the Dutch dairy sector."

How do you get members on board with the green direction?
"We must first state that there are few farmers who do not want to become more sustainable. The manner in which and the pace are another matter. It may be ambitious, but it must also be manageable. In our view, it revolves around three aspects. First of all, as a cooperative you must move towards give with clear goals. You must reward results financially. And in the end it's about offering perspective, also for the next generation."

Many dairy companies are concerned about the availability of milk due to the expected decline in animal numbers. How do you see this?
"No milk means no business. And no business means no existence, plain and simple. In that sense, you have to look at market developments realistically. With our brand strategy we think we can bind dairy farmers to us, because this is the best return on investment over a longer period of time. At the beginning of this year we hired a number of new members, because we also have quitters and we want to maintain volume. Fortunately, we still have a waiting list for new members."

Cono cannot currently live up to its reputation as a top payer of milk money, what are you going to do about this?
"As mentioned, we will continue to stick to our strategy with strong brands such as Beemster, Oudendijk and Stompetoren. The past has shown that this is the best return. We have every confidence in getting back to the top of the Milk Price Comparator. Cono is large enough to have economies of scale. but small enough to remain agile. This is where our strength lies. We do not have huge marketing budgets, but that forces us to be creative. For example, for our Beemster advertising video we did not hire expensive actors, but we used our own people are deployed. That gives authenticity and is exactly what we stand for."

It sounds as if you are going to continue the line of your predecessor Wim Betten.
"Wim and I have worked together for a long time on our vision. We are both enterprising and sometimes a bit recalcitrant. For example, when we get on the plane, we consciously put on our Beemster jacket. This means you immediately have a conversation with someone next to you. you're sitting. That's also a way to promote a brand."

"I am grateful to Wim for staying on as an advisor. Of course we differ from each other here and there. My background is commerce and in that area I want to put Cono even better on the map. One of the possible projects is the realization of a Beemster Experience Center in our old cheese factory. Cheese is a product with a story and the Beemster is a UNESCO world heritage site. We can make something beautiful out of this, which also reflects well on dairy farming and the dairy sector."

Cheese sales were slightly stronger during the corona period through specialty stores and markets. It is now the old pattern again. Is that difficult?
"We also sell a lot to retail and food service and see that the share of cheese sales there is increasing again, but specialty stores are also important to us as a branded product maker. We find specialty stores so important that we have bought our own chain, the Amsterdam Cheese Company That was in 2019. Then corona came and things did not go so well, but sales are now exceeding expectations. Although the Amsterdam Cheese Company is aimed at tourists, sales to specialty stores for Dutch consumers also have our full attention and this we continue to invest."

Go jAre you also working on plant-based dairy, which Cono has not yet done?
"Developments in this market are moving quickly, partly due to the development money from major investors. Perhaps that is why a kind of hype has arisen. Many consumers are curious, but whether they will structurally switch to plant-based cheese remains to be seen. It is extremely difficult to match the taste of cheese with vegetable raw materials and we only invest in something if it is of the highest quality, we are obliged to do so. In our view, dairy has acquired too much of the image of a less desirable animal protein. You can also very well argue that it is a vegetable protein that is converted into milk via the cow. However, we do not close our eyes to developments, but for the time being we will continue to focus on brand cheese based on cow's milk."

This is part 2 of a double interview. Also read the farewell interview with Wim Betten: Very proud of where Cono and Beemsterkaas are now.