FrieslandCampina: The Dairy Market is Expected to Face Continued Pressure on Milk Production in Vital Exporting Regions
Source: The DairyNews
In anticipation of market challenges in 2024, FrieslandCampina, a leading dairy cooperative, has identified key trends influencing the global dairy industry. The dairy market is expected to face continued pressure on milk production in vital exporting regions.
While a slight growth in worldwide dairy demand is projected, factors such as persistent conflicts and geopolitical instability are anticipated to contribute to increased costs for raw materials, packaging, and transportation.
Looking forward to 2030, FrieslandCampina is steering its focus towards optimal valorization of member milk, intending to pay a leading milk price. The company's strategic roadmap, Expedition 2030, takes center stage in 2024, alongside the implementation of a new organizational structure featuring seven specialized business groups. These groups will be supported by a streamlined production organization and efficient support departments.
Expedition 2030's success will be gauged across three dimensions: 'winning in the market,' 'increasing the margin,' and 'improving our cash position.' The ultimate aim is to achieve optimal valorization of member milk. Expedition 2030, coupled with announced annual savings, is anticipated to counter inflation and positively impact overall results. However, due to market uncertainties, specific revenue and result forecasts for 2024 are not provided.
In pursuit of sustainable growth, FrieslandCampina is committed to ongoing investments in the enhancement of production equipment, development, and innovation. Notably, the company inaugurated a new production and distribution center in Cikarang, Indonesia, in January 2024, catering to the production of sweetened condensed milk for Indonesia and Southeast Asian markets. Additionally, a new production facility in Bandar Enstek, Malaysia, is under construction and expected to be operational by 2024. This facility will boast increased capacity and a diversified product range for export to neighboring countries, contributing significantly to FrieslandCampina's regional growth.
The company's dedication to sustainability is evident through these strategic initiatives, reinforcing its commitment to responsible and forward-looking practices in the dairy industry.
Looking forward to 2030, FrieslandCampina is steering its focus towards optimal valorization of member milk, intending to pay a leading milk price. The company's strategic roadmap, Expedition 2030, takes center stage in 2024, alongside the implementation of a new organizational structure featuring seven specialized business groups. These groups will be supported by a streamlined production organization and efficient support departments.
Expedition 2030's success will be gauged across three dimensions: 'winning in the market,' 'increasing the margin,' and 'improving our cash position.' The ultimate aim is to achieve optimal valorization of member milk. Expedition 2030, coupled with announced annual savings, is anticipated to counter inflation and positively impact overall results. However, due to market uncertainties, specific revenue and result forecasts for 2024 are not provided.
In pursuit of sustainable growth, FrieslandCampina is committed to ongoing investments in the enhancement of production equipment, development, and innovation. Notably, the company inaugurated a new production and distribution center in Cikarang, Indonesia, in January 2024, catering to the production of sweetened condensed milk for Indonesia and Southeast Asian markets. Additionally, a new production facility in Bandar Enstek, Malaysia, is under construction and expected to be operational by 2024. This facility will boast increased capacity and a diversified product range for export to neighboring countries, contributing significantly to FrieslandCampina's regional growth.
The company's dedication to sustainability is evident through these strategic initiatives, reinforcing its commitment to responsible and forward-looking practices in the dairy industry.
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