Milcobel wants to reorganize after negative 2023

This will be at the Kallo branch. The most modern powder tower will continue to be used, two smaller and older towers will either be given a different purpose or will be closed. According to Milcobel, they can be used for drying vegetable food or for contract production. This is already happening to a limited extent. In any case, from September onwards they will no longer be used for our own milk powder production, that is the plan. Due to the low milk powder prices, continued production is not profitable.

Milcobel also intends to integrate its Premium Ingredients and Consumer Products dairy units in order to collaborate more efficiently with a flatter structure.

Almost €12 million loss
The immediate reason for the reorganization is the net loss of €11,6 million for 2023, with a €21 million lower turnover than last year. At the time, turnover was €1,36 billion, with a profit of €4,4 million. It is expected that 130 jobs will be lost as a result of the reorganization.

Milcobel is also committed to other measures to reduce costs, such as not paying out management bonuses for 2023, limiting new vacancies and reducing the number of external consultants.

High one-off setback
In the past year, in addition to powder production, there were also other major cost items, such as the difficult implementation of an ERP software package (SAP) in the Consumer Products department. This led to a high one-off setback. This incident also exposed the need to implement a different organizational structure in order to achieve more synergy. The obligation to index wage costs by 11% also had an impact.

Ysco and Cheese Brik
In the meantime, things were not going badly everywhere. Subsidiary Ysco performed strongly and Kaasbrik's grating activities also performed well. Milcobel is therefore studying the possibility of expanding its cheese grater activities. And then there is a partnership with Arla for a higher valorization of the whey from the mozzarella factory in Langemark.