We aim to help people move forward in life with natural dairy nutrition. For our owners, our members farmers, we want to generate profit and valorise their milk.
In our strategy route2020 we focus with our investments and innovations on a selected number of value drivers. In developing and expanding our activities, we are primarily concentrating on growth, profitability and milk valorisation (adding value to milk).
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We have chosen to underline worldwide growth in dairy based beverages, branded cheeses and infant & toddler nutrition ingredients by selling our branded products in more European, Asian and African countries.
With our products for the hotel and catering industry, bakeries and the professional food service industries in Europe, we are aiming to achieve growth by offering a wider range of dairy products and by increasing its geographical presence.
We want to generate worldwide growth in the products we supply to the food industry by developing specific ingredients in liaison with clients. This will mean a shift from sales of commodities such as milk powder and whey powder towards sales of more specialised products.
Further expanding our strong positions, both in consumer products and ingredients, is an important element of route2020.
Targeted innovation as well as additional scope for investments have to lead to the growth of our value drivers. Our strategy includes the possibility of acquisitions.
Innovation based on all the goodness that milk has to offer
Innovation and enhancing the natural qualities of milk are essential if we are to develop our focus on achieving value growth. Milk is one of the most nutritious sources of food in the world. We firmly believe that we can do even more with milk and use even more of the nutrients it contains. Given the developments we are seeing in society as a whole, as well as among consumers and our clients, our innovation is targeted at good, healthy food and nutritional benefits. In the case of our professional and industrial clients we are concentrating on the functional qualities of our ingredients so that our customers, in turn, can improve both the quality and taste of their products.
Climate-neutral growth in the entire dairy chain
We aim at achieving climate-neutral growth in the entire dairy chain. We will go beyond the agreements between the Dutch dairy sector and the national government on reducing greenhouse gas volumes by 30 per cent between 1990 and 2020. We have also set ourselves the objective of achieving growth that is climate-neutral throughout the entire chain, from cow to consumer. FrieslandCampina is seeking to achieve this aim by working with dairy farmers and partners in the chain to improve energy efficiency, reduce greenhouse gas emissions and encourage dairy farms to generate energy from sustainable sources.
Further developing the dairy chain, together with our member farmers
We are keen to respond more actively to opportunities for collaboration throughout the dairy chain both in respect of products and sustainability. The member farmers supply their milk on a daily basis and, via the co-operative structure, are the owners of FrieslandCampina. Our co-operative chain approach, which extends from our dairy farmers to the consumers, enables us to guarantee the quality we supply to consumers and clients and enables us to differentiate ourselves in products and sustainability.
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The company expects to increase sales volumes of its differentiated products by an average of five per cent a year. route2020 will lead to further improvement in FrieslandCampina’s results, with larger numbers of added-value products, fewer commodities and a strong focus on cost management.
The strategy will mean a gradual improvement in FrieslandCampina’s result, and this will be reflected in the performance price paid for all milk supplied by member farmers. FrieslandCampina expects to be able to fund the costs of implementing route2020 from profits.
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