Creating Shared Value
Vreugdenhil operates from the heart of society and has the objective of adding value within the entire chain in economic, social and ecological terms. Based on this vision we have drawn up our five-year strategy Marathon ‘22. Year 2018 was the second year of this strategy, which focused on three priorities: Profitable Value Chain, Great Place to Work and Climate Neutral.
Profitable value chain
Vreugdenhil is growing. In 2018, we further expanded the production of ingredients for infant nutrition. We optimised two production lines in Gorinchem: one for the ingredients for infant nutrition and one for fast and flexible supply of milk powders. In this way we have improved the supply quality and increased the flexibility of our business. With the various programmes in the area of the production of good quality sustainable ilk we have been able to achieve good results together with our dairy farmers. For example, our dairy farmers scored better than the Dutch average on the main quality points. We are proud to be able to report that next year we will start enriching our milk powders for the African market with the aim of increasing its health contribution. After all, worldwide over 2 billion people are still suffering from lack of vitamins and minerals.
Great place to work
The growth of our company is reflected in our headcount; we have more employees than ever. Sadly, sickness absence also rose, from 3.7% to 4.6%. This increase was mainly due to non-work-related long-term absence at production sites. Of course, we will be focusing on sickness absence in 2019, so that we can achieve our objective of 4%. Another point of attention is the number of lost-time accidents. At year-end, we had had 16 (lost-time) accidents. Any accident should be prevented. For this reason, we are going to step up our focus on safety, which will be apparent from safety certifications of our sites. There is also room for personal development. In early 2019 all our employees will get access to an extensive range of courses and training.
For us, adding value does not only mean offering a delicious and nutritious product, but also generating positive impact in the creation process. This is why we have taken up the challenge to produce in a climate-neutral way by 2029. In 2018, nine measures have been translated into a plan of action to achieve this. The local teams have started executing these plans with the goal of reducing energy consumption in 2019 by 5% per tonne compared to 2018. In addition, we have investigated the options for generating solar and wind energy.
We want to thank all parties involved in our chain, from dairy farmers and suppliers to customers, for the faith they have had in us. Our employees deserve a word of thanks as well for their hard work and unbridled dedication.
We hope you enjoy reading this annual report, its figures and pictures.
‘We bring you the best of milk’!
Jan Vreugdenhil, Chairman
Albert de Groot, CEO
Albert de Groot and Jan Vreugdenhil