Strategy: Our Purpose, Our Plan
What we do adds value. Value in nutrition. Value for nature. Value for people. Young and old, consumer and customer, citizen and society. And in that way we add value for the owners of our company: the member farmers of FrieslandCampina.
All employees worldwide are focused on adding this value, every day. Our Purpose tells us why we do what we do, and our strategy tells us what to do to realise this purpose.
FrieslandCampina’s purpose is nourishing by nature. It stands for better nutrition for the world, a good living for our farmers, now and for generations to come.
The global population is expected to grow with 2.2 billion people by 2050, to 9.7 billion people in 2050. This, together with the increase in wealth, will result in a growth in demand for food. With its dairy products FrieslandCampina can contribute to feeding the world’s population. FrieslandCampina will focus on improving its products as part of a sustainable diet and on ensuring our dairy products to become even more nutritious and remain affordable – and thus relevant – for everyone. This is in line with the United Nations’ Sustainable Development Goal ‘Zero Hunger – End hunger, achieve food security and improved nutrition and promote sustainable agriculture’ (SDG 2).
A good living for our farmers
FrieslandCampina’s goal is to add as much value as possible to the milk to ensure the maximum contribution to the incomes of our member farmers and continuity of many generations. FrieslandCampina wants to be the highest paying large cooperative with regards to performance price. By doing so, FrieslandCampina will remain an attractive company for member dairy farmers. In a number of countries in Asia, Africa and Eastern Europe FrieslandCampina offers local dairy farmers assistance with improving their farm management and milk quality through the Dairy Development Programme (DDP). Since the start of the programme in the 1980s, we have directly and indirectly reached >250,000 dairy farmers. This is in line with the Sustainable Development Goal ‘Decent Work and Economic Growth – Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’ (SDG 8).
Now and for generations to come
FrieslandCampina focuses on future generations. This is why we invest in sustainable long-term growth of the Company and the Cooperative. Our goal is to produce climate-neutral dairy in 2050 and reduce the use of scarce natural resources such as water, raw materials and fossil fuels. This is in line with the Sustainable Development Goals ‘Responsible Consumption and Production – Ensure sustainable consumption and production patterns.’ (SDG 12) and ‘Climate Action – Take urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy’ (SDG 13).
Our Plan puts our purpose into action. We therefore label our strategy Our Purpose, Our Plan, entailing four central themes:
- Win with nutrition – Producing good and healthy dairy products is at the core of who we are and of everything we do. We have a unique grass to glass proposition for our customers and consumers that we will build on.
- Serve the 24/7 consumer and customer – We are committed to serving customers and consumers anytime and anywhere: this means having the right product at the right time, in the right location for the right price.
- Lead with sustainability – FrieslandCampina and its member farmers are committed to be true leaders in sustainability and generate value for all stakeholders. We will invest more in the brands that are most in line with our purpose.
- Elevate our essentials – We will deliver on our company’s purpose by securing sufficient milk processing capacity and driving value with an optimal mix of essential dairy products, including building a profitable cheese segment.
We aim to improve every year. Our key ambitions in line with Our Purpose, Our Plan are:
- To pay a #1 performance price to our member farmers to ensure a ‘good living for our
- To grow value added volumes by more than 2 percent per year
- To improve gross margins by more than 1 percent point per year
- To achieve at least 8 out of 10 sustainability targets
- To increase Return of Capital by more than 1 percent point per year
Our people make the difference and ensure our sustainable success. Therefore, we want to create a work environment in which people feel safe and valued and where employees are engaged and are given the right conditions to perform at their best. Our people are challenged to continuously look for improvement opportunities. Be it for safety solutions, quality, innovation, our entrepreneurial skills or sustainability contributions. Our Purpose, Our Plan provides focus for the whole company and inspires us to achieve great things for all our stakeholders, and ourselves. Learn more about our culture on our careers page.