According to RetailDetail, FrieslandCampina is not proud of last year. The dairy producer recorded a considerable loss and saw its revenues decrease. Currently, the Dutch company is undergoing a restructuring determined by the board.

Less milk

In December, FrieslandCampina announced it would cut 1,800 jobs. Now the reasons are becoming increasingly clear: Dairy producers suffered a net loss of 149 million euros in 2023, down from a profit of 292 million euros in 2022.

Part of the loss came from restructuring costs, but demand also decreased. Net income decreased by 7.1% to 13.1 billion euros. Volume decreased as consumers bought less frequent and smaller quantities of milk.

However, about half of the revenue decline came from negative currency effects in Pakistan and Nigeria. FrieslandCampina is the market leader in Pakistan, but political turmoil and severe floods have devalued the currency.

Nevertheless, the company remains committed to developing countries, CEO Jan Derck van Karnebeek told FD.

After all, demand is increasing especially in those countries, unlike Europe, where both consumption and production are under pressure.

FrieslandCampina acknowledges that there may be fewer dairy farmers due to climate and greenhouse gas emission policies in the Benelux countries, but how many will leave the cooperative is "difficult to predict." (Photo: Freepik)