Campina invests EUR 100 million in existing production facilities
Published: December 21, 2006
Source : Campina
The international dairy co-operative Campina will release EUR 100 million for new investments in its existing production facilities in 2007. Even more than in 2006, investments will focus on new, often international product concepts that will further strengthen Campina’s market position.
The Campina Members’ Council, consisting of representatives of the member-farmers in the Netherlands, Germany and Belgium who own Campina, approved the 2007 investment budget yesterday at its annual December meeting. The guiding theme in the new year will be a drive for new, primarily international product concepts and improved efficiency. Fewer resources are required for replacement investments and investments resulting from environmental and safety measures during 2007.
Strategic priorities
International growth, innovation and efficiency are strategic priorities for Campina. This strategy has enabled the company to pay its member-farmers higher than average milk prices for years: Campina is among the top payers in Europe. Its growth strategy provides for opportunities to supply consumers and industrial clients with a continual flow of innovative consumer products and dairy ingredients full of natural nutrients for the human body, produced naturally and sustainably, close to millions of consumers.
As in 2006, the investment level of EUR 100 million will match the level of Campina’s depreciation. In earlier years, investments were clearly higher than depreciation. In the 2002-2005 period, Campina made major investments in its production locations in Aalter (Belgium, international production location for dairy drinks), Maasdam (the Netherlands, production location for innovative dairy drinks and desserts) and Elsterwerda (Germany, international production location for desserts and dairy drinks).
Actual investment expenditure in 2007 will be slightly higher than EUR 100 million, as a result of investments arising from projects approved in earlier years. These include projects such as Veghel Force (an investment of EUR 57 million in whey processing and production of food ingredients by the Industrial Products group in Veghel), the cheese packaging activities in Lutjewinkel (the Netherlands) and the new Campina milk with a more balanced fatty acid composition, which the Consumer Products Europe (CPE) group will introduce to the Dutch market in the spring of 2007.
Campina milk with a more balanced fatty acid composition
In the early months of 2007, the CPE group will complete investments in Campina’s liquid milk companies in Rotterdam and Eindhoven (both in the Netherlands). These companies will then be equipped to receive separate deliveries of Campina milk with a more balanced fatty acid composition, and to process these separately. No Dutch dairy company has previously realised such a large separate milk flow (for more than 200 million litres of liquid milk). In early 2007, 600 Dutch Campina dairy farmers in the Rotterdam and Eindhoven regions will start producing Campina milk with a more balanced fatty acid composition on their farms, on the basis of outdoor grazing in combination with modified natural feed for their cows. This new milk will be collected and processed separately from the standard Campina milk. Together with three social organisations, the World Wildlife Fund (WWF), Solidaridad and The Netherlands Society for Nature and Environment, Campina has reserved sufficient volumes of sustainably-produced soya for cattle feed for Campina milk.
The CPE group, active in Europe with the production, marketing and sale of milk, dairy drinks and desserts, will make many notable investments in 2007. The group aims to strengthen the position of its main brands, Campina (international), Landliebe (Germany, Austria) and Mona (the Netherlands), through the introduction of innovations in dairy drinks and desserts, such as the new Campina milk with a more balanced fatty acid composition and Campina Optimel/Optiwell Control (yoghurt with a natural appetite suppressant). The investment programme for 2007 also includes further growth in the production of Campina dairy drinks in Russia.
Veghel Force
Campina approved the Veghel Force project, involving an investment of EUR 57 million in whey processing and production of food ingredients in Veghel, at the end of 2005. The conversion of whey processing accounts for the largest part of the investment. In 2007, this will result in the production of new and unique whey-based ingredients for the globally-operating food industry.
The Cheese & Butter group will complete investments in Lutjewinkel during 2007. In addition to the production plant for North Holland cheese, commissioned in 2006 following a reconstruction in the wake of two fires in 2004, the cheese packaging plant will be commissioned in 2007. Campina will then close the unit in Alkmaar. The Cheese & Butter group will also complete the transfer of production of butter and butter oil from Aalter (Belgium) to the locations in Den Bosch (the Netherlands) and Klerken (Belgium) during 2007.
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