Multinational dairy cooperative FrieslandCampina to cease powder production at two Dutch plants

DENMARK – Dutch multinational dairy cooperative FrieslandCampina has announced plans to discontinue the powder production at its Dutch plants in Dronrijp and Gerkesklooster by the April 2022.

The plan to end powder production at the two facilities is the latest move under the dairy cooperative’s transformation strategy.

According to a statement from FrieslandCampina, the Dronrijp plant – which currently produces several powder products for use in infant nutrition, medical nutrition and sports nutrition – will be closed as of 1 April 2022.

The dairy company noted that that production at the facility will be moved to other locations.

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Meanwhile, the whey and milk powder tower in Gerkesklooster which served as an emergency milk processing facility will cease production on 15 January 2021.

As part of FrieslandCampina Dairy Essentials, the Gerkesklooster site will continue to produce other dairy products such as cheese.

FrieslandCampina says there will be a total of 57 redundancies as a result of ceasing powder production at both locations.

The announcement forms part of the acceleration of FrieslandCampina’s ‘Our Purpose, Our Plan’ strategy.

The strategy launched in 2018 was re-evaluated on November this year to amongst other things, reduce structural overcapacity through plant closures or by relocating production volumes.

The termination of powder production at the two sites comes after the closure of FrieslandCampina’s production facility in Rijkevoort, the Netherlands.

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Last month, the dairy cooperative announced the acceleration of its transformation strategy in Germany, which will include the loss of 195 employees and cuts to its portfolio.

Hans Meeuwis, president of FrieslandCampina Dairy Essentials, said: “We are continuously looking for ways to further improve our position with regard to milk processing, value creation and cost optimisation.

“Needless to say, we do this with all interests in mind and concern for all employees involved. This step fits in with the further improvement of our position.”

Even as it cuts production and improves efficiency, FrieslandCampina has been partnering with farmers to improve productivity at the farm level.

Earlier this month, the dairy cooperative’s subsidiary FrieslandCampina Engro Pakistan entered into a partnership with the Bank of Punjab to help farmers there obtain finance for their businesses.

With the working capital, FrieslandCampina says that farmers can modernize their farms and invest in activities such as advanced dairy infrastructure and improved livestock which improve their daily yields.

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