TINE "will undergo significant changes"

10 Sep 2019

TINE, Norway's largest producer, distributor and exporter of dairy products with 10,000 members (owners) and 8,000 cooperative farms, says it will undergo significant changes over the next three years.

The company says it faces major changes with the loss of Jarlsberg exports, tougher competition and changes in consumption patterns.

TINE will undergo significant changes

“We must create customer growth while streamlining operations. TINE is the dairy farmer's most important insurance and must be further developed to secure the future of both dairy farmers and employees,” said TINE board chairman Marit Haugen. “I am very proud of what TINE has done. Now we must equip TINE and Norwegian dairy producers to be able to contribute to Norwegian food production and living communities for another 150 years. Our analyses show that both profitability and volume will disappear without powerful measures.”

“We must change to preserve. The owners expect measures to strengthen the competitiveness of a dairy market where TINE's shares in several categories have been in sharp decline over several years. We will invest in more innovation and in areas where it grows - it is simply healthy farmer's fat,” said Haugen.

A number of measures have been drawn up that are now being implemented to strengthen competitiveness. TINE will bring together sales and marketing in a commercial team and at the same time, TINE is establishing a corporate area for long-term innovation and digitalisation.

According to the company, 8-10% of Norwegian milk volume will be cut, while lower production and post-payment means that dairy farmers will have a significant fall in income in 2020 and the years to come.

- The situation is serious and complex. If we are to have sustainable, Norwegian milk production that contributes to value creation across the country in the future, TINE must do everything possible to minimize this fall in income, says Haugen.

Will reduce staff by 400 man-years and save 1 billion

At the same time, TINE is starting to streamline operations throughout TINE. This entails improvement measures with the aim of reducing costs by at least NOK 1 billion. It will also bring down staffing.

- We need to improve how we interact and use our resources more effectively in the future. Lower milk volume also results in less activity and need for resources. Therefore, we must reduce staff by about 400 man-years by the various functions of TINE SA by the end of 2021. These are measures that will affect many good employees in TINE and it is very regrettable. So I promise that all employees will be well looked after in the upcoming restructuring work. We will work well with union representatives as we have experience with such processes in the past, ”says Hovland.

Group representative in the TINE Group, Tor Arne Johansen, says he sees that significant changes are needed and that this will unfortunately, among other things, lead to downsizing.

- It is still too early to say how much the downsizing will be in the various corporate areas of the company. I have confidence in - and expect - that the management will involve union representatives in a proper way as we are used to from before, says Johansen

- We are confident that the employees want the best for the dairy farmer's company and are looking forward to the important job to be done. We are convinced that TINE's ability to constantly improve, strong brands and quality, provides very good conditions for success in this demanding change, Hovland concludes.



Related tags

Dairy

Related news

EWPA launches consumer web site

EWPA launches consumer web site

13 Jan 2020

The EWPA (European Whey Processors Association) has launched wheyforliving.com, its first B2C digital communication platform promoting the various benefits of whey protein.

Read more 
Borden files for bankruptcy

Borden files for bankruptcy

9 Jan 2020

US dairy company Borden has announced that it has initiated voluntary reorganisation proceedings under Chapter 11 of the Bankruptcy Code.

Read more 
Fonterra takes 99.9% of Chile milk processor

Fonterra takes 99.9% of Chile milk processor

8 Jan 2020

Fonterra has purchased the minority interest in Prolesur, held by Fundación Isabel Aninat (the Fundación), as the Co-op looks to streamline its operations in Chile.

Read more 
LegenDairy Foods gets $4 million funding

LegenDairy Foods gets $4 million funding

7 Jan 2020

Agronomics has co-led a €4 million seed fundraising round of German company LegenDairy Foods alongside M Ventures, the corporate venture capital arm of science and technology company Merck.

Read more 
Dairy alternatives 'a key battlefront' - Innova

Dairy alternatives 'a key battlefront' - Innova

24 Dec 2019

‘The Plant Based Revolution’ is number two of the Top 10 Trends highlighted by Innova Market Insights for 2020 and the dairy alternatives category represents a key battlefront in this consumer-driven revolt, the company says.

Read more 
DFA realigns ingredients offering

DFA realigns ingredients offering

19 Dec 2019

Dairy Farmers of America (DFA) has realigned its Ingredients division, including dairy powders, dairy food ingredients, DairiConcepts and Berkshire Dairy, to form DFA Ingredient Solutions.

Read more 
Maxum Foods reports on dairy market

Maxum Foods reports on dairy market

6 Dec 2019

According to the Maxum Foods Global Dairy Commodity Update for December, the fundamentals underpinning the global market outlook remain positive but may weaken with improving expansion in milk supply and a slowing in trade in milk powders.

Read more 
Arla announces Nutrilac YO-4575 for booming Skyr market

Arla announces Nutrilac YO-4575 for booming Skyr market

5 Dec 2019

When looking at the total yoghurt market, Arla Foods Ingredients claims that Skyr as a product is taking an increasing piece of the total market share.

Read more 
Arla launches maternal supplement concepts

Arla launches maternal supplement concepts

29 Nov 2019

Arla Foods Ingredients has launched two maternal supplementation concepts to support children’s cognitive development during pregnancy and lactation.

Read more 
DSM to acquire Dutch cheese cultures company

DSM to acquire Dutch cheese cultures company

21 Nov 2019

DSM has reached agreement for the acquisition of CSK for €150 million. Subject to customary conditions, the transaction is expected to close before the end of the year. CSK has a track record of Dutch heritage semi-hard cheese cultures of more than 100...

Read more