Campina concentrates production to achieve market share
is investing €57 million in its whey processing and food ingredient
facilities in Veghel, the Netherlands as part of the group's
overall strategy to concentrate on key sectors of the dairy
industry.
The major part of the investment lies within the upgraded processing of whey, resulting in new and unique whey based ingredients for the worldwide food and nutrition markets. The 'Veghel Force' project as it called is the division's largest investment ever and will enable DMV International to capitalise on emerging opportunities in the dairy sector.
The market for whey derivatives is very promising with annual growth rates of approximately 10 per cent. DMV International intends to develop specific whey derived ingredients for both the food and nutrition industries worldwide.
However, DMV International's facility in Uitgeest, the Netherlands will be closed as a result of re-structuring operations. Campina says that a total of 36 jobs of DMV staff will be affected.
The company of course is keen to stress the positive. "This is a major boost for our whey processing operation enabling us to produce a product portfolio that fits market opportunities," said Alexander R. Wessels, managing director of DMV International.
"The investment is in conformance with our strategy, in which we give priority to a market and innovation driven approach on the one hand and a focus on efficiency in operations on the other hand."
Campina claims that the Veghel investment project will deliver the first batch of commercial product during the third quarter of 2006. In addition to a highly efficient whey processing plant, a flexible processing unit will be opened for the manufacture of value added food ingredients.
The full project is planned to be finalised by 31 December 2006. The company claims that the Veghel Force project will also secure high technology-level employment within DMV International for now and the future.
Campina, which is currently Europe's third largest dairy co-operative, has approved a 2005 investment budget of more than €110 million, which it will use to step-up co-operation between its German, Dutch and International divisions, responsible for the development and production of its so-called 'white' product groups - referring to milk, yoghurt and dairy-based desserts. Although the investment figure is significantly lower than that of 2004, it excludes an additional €50 million, set-aside in previous budgets as part of its ongoing long-term investment strategy.
The dairy co-operative also plans to continue upgrading facilities at its Netherlands-based research and development facility in Wageningen, which was responsible for the development of Campina's successful extended shelf-life fresh liquid milk brand, launched in March last year.
Campina will also use the investment to build an international plant for innovative dairy-based beverages in Aalter, Belgium, which will consolidate its ability to produce branded, consumer dairy products for export to the rapidly expanding southern European and Asian markets - areas in which the dairy co-operative already has a modest foothold.
Justinus Sanders, Campina CEO, commented recently that Europe is becoming a saturated market, adding that although Campina's turnover in the Far East is currently modest, there is a substantial opportunity for its strongest performing Campina brands - which include a range of dairy-based beverages and desserts - to build up a defendable market position.
"If the market in an Asian country grows 20 per cent in a year and your own business grows 15 per cent, you may lose market share, but you still have 15 per cent growth," he said.
