Milcobel cv and CEO Nils van Dam part ways

2024 announces itself as another very challenging year for the Belgian dairy sector. Milcobel too will not escape this challenge, characterized by volatile markets, stricter sustainability requirements and a milk production that seems to be reaching its ceiling.

In recent years, as a dairy cooperative, Milcobel has made strong efforts to reposition itself in a competitive dairy landscape. Via the Phoenix plan, the necessary transformation was implemented to be ready for the future. Thanks to a clear strategy, a resolute choice was made to create more added value.

To further develop this future story, Milcobel is looking for a new CEO. ​ The Board of Directors and current CEO Nils van Dam mutually decided to end the cooperation. A limited management team was mandated by the Board of Directors to take care of day-to-day management pending the appointment of a new CEO.

Added value

After a particularly strong track record in 2022, Milcobel as a dairy processor also had to slightly adjust its ambitions in 2023. This under the influence of sharply falling dairy markets, resulting in a lower milk price for member-cooperants. Last year's situation once again underlines the necessity of the choices Milcobel made a few years ago to focus more on added value. It was the central driver within the Phoenix plan launched by Nils van Dam upon his appointment as CEO in 2020.

The closure of the milk factory in Schoten (Belgium), the decision to produce high-quality powders, the strengthening of its international position as mozzarella producer and the takeover of rasper Kaasbrik (Halen) are fine achievements in this area. In addition, increasing the investment envelope for automation, digitalisation and projects in IT and (food) safety also provided the much-needed turnaround.

President Betty Eeckhaut: "Under the leadership of Nils van Dam, Milcobel made a necessary catch-up. However, the evaluation of the realized trajectory and the preparation of the next steps revealed a clear difference in vision between Board of Directors and CEO. In mutual consultation, it was therefore decided to end the cooperation. On behalf of the Board of Directors, I would therefore like to thank Nils for his efforts to make Milcobel competitive again as a dairy company. We may speak of a real transformation, even if today it does not always deliver the results we aspire to. Paying an above-average milk price to our member-cooperants remains the objective. The foundations for this have been laid, now results must be achieved."

Continue building

To realise this ambition, Milcobel is fully exploring new opportunities and future projects. Investing in highly valorising products remains our compass, whether or not in partnership with other parties. As far as that is concerned, 2024 already started positively, with the first deliveries of whey protein concentrate (WPC80) to Arla Foods Ingredients for further processing in baby food and pharmaceutical applications. The result of an intensive preparation process that is now successfully completed.

This and other projects should put Milcobel even stronger on the map as the specialist in dairy in the near future. Besides the expansion of our ingredients business, this also means being and remaining the indisputable number one in Belgian cheese. We are also further profiling ourselves as the preferred partner for private label ice cream in Europe.

President Betty Eeckhaut: "In order to be successful, we need to increase our commercial clout, among other things. We expect a new CEO to take the lead in this and inspire the teams. All this within the contours of a dynamic cooperative, focused on cooperation and trust. With member dairy farmers and employees who are proud of what we achieve together."

Succession

The Board of Directors is now taking its time to translate expectations and ambitions into a suitable profile for a new CEO.

President Betty Eeckhaut: "We choose not to appoint an interim CEO but prioritise continuity in managing the ongoing projects. This is why the Board of Directors is mandating a team of executives to take on the day-to-day management of Milcobel. This allows us to start looking for a suitable successor to Nils van Dam without haste. We are confident that Milcobel is in good hands in the meantime and count on both members and employees to commit to making this a success."

The day-to-day management of Milcobel will temporarily be in the hands of Pierre Stevens (CFO), Edith Hamelryckx (HR Director), Francis Relaes (Managing Director Milcobel Premium Ingredients) and Tom Schiettecat (Director Milk & Farms). The foursome will take up the daily management as a team and report directly to the Executive Board in this respect.