Strategy
Our strategy is aimed at achieving our vision and mission and upholding our values.
Vision
We believe that everyone worldwide should be able to enjoy the benefits of quality dairy products. We see it as our task to contribute to making that happen!
Mission
We want to be the best and most sustainable supplier of standard dairy products in the world for the food and feed market. We want to add value (commercial, logistical, financial, risk management, administrative and technical) for our suppliers and our customers with whom we want to establish long-term relationships. Our people make the difference!
Our values
The strategic pillars
In total, we have defined six strategic pillars that guide our direction.
At the core of our strategy lies a strong foundation: the NUMIDIANS.
Our success starts with the hiring and training of world-class employees. We aim to provide an average of 40-60 hours of training per year to support employee development. We also dedicate a lot of time and attention to forging an excellent team. Our management style, known as "reversed accountability", emphasizes that managers should be there for our employees, not the other way around. The better we apply this management style , the better employees will feel and the better they can perform. It is therefore not surprising that Numidia has been certified as a Great Place To Work for the last three years.
MOST SUSTAINABLE: We apply responsible trading practices with respect for people and the environment.
As stated in our mission, we want to be the most sustainable supplier in our business. We established our Environmental Management System (to the ISO 14001 standard) in 2018. Since 2019, we have voluntarily offset the emissions of our own activities and those of all transports and warehousing that we organize for our customers. Since 2023, we compensate the Scope 1 and 2 emissions within the dairy supply chain.
MARKET LEADERSHIP: We strive for double-digit growth to increase our market share in the physical and derivative business.
Our physical sales volume has grown by 16% from 2022 to 2023 and we have maintained a 68% Compound Annual Growth Rate (CAGR) on derivative volume over the last four years. Our ambition is to keep growing both sides of the business in order to maintain and extend our leading position. Numidia believes that a leading position on both sides of the business is required to maintain a leading position in the worldwide dairy industry.
MOST INNOVATIVE: We use the latest technology and data to make the best decisions and work more efficiently.
Numidia’s IT and innovation vision is based on five pillars:
1. Automation: improve, standardize and automate repetitive processes to deliver the best experience in the most efficient and reliable way possible. To this end, we use the latest automation tools available like Robotic Process Automation (RPA).
2. Integration: electronically link Numidia with external parties (customers, suppliers, authorities) in order to optimize transparency and provide our partners with real-time information as much as possible.
3. Business intelligence:
Market intelligence is key for our derivative business. By collecting comprehensive and up-to-date (market) data and translating the information into concrete actions, we can anticipate and act upon market developments . To this end, we make use of the latest technologies like Artificial Intelligence (AI).
Real-time information on financial and operational performance is key in managing and controlling the business. To this end, we use the latest BI tooling, which is linked to our ERP system and other sources.
4. Risk management and compliance: identifying and controlling risks is crucial in avoiding (unforeseen) compliance issues and being on top of business risk and market risk. IT systems are utilized to establish optimal transparency and provide early warnings for any potential issues.
5. Cyber security: the threat of cyber security is increasing and the impact on operations can be significant. By using state-of-the art tools for detection and monitoring, we minimize the risk of security breaches. In addition, we train our people for maximum awareness.
BEST EXPERIENCE: We listen to and satisfy the requirements and wishes of our customers and suppliers.
Our physical product strategy has always been about operational excellence; about creating a distinct market position through the delivery of standard dairy products (commodities) with outstanding operational performance. In the coming year(s), we will focus even more on satisfying our customers’ and suppliers’ expectations through a combination of operational excellence in controlling the supply chain and customer intimacy with regard to the delivery of goods and related documents/information.
We strive to deliver operational excellence at the best possible price (cost leadership) and achieve this by maintaining a simple organizational structure. From the outset, we decided to maintain a single global order book. As a result, we have realtime and detailed insight into our total product positions , enabling us concentrate our efforts on fully serving our customers and suppliers. After all, there is no internal trading between the various offices and everyone is working toward the same goal.
BEST PRODUCTS: We bridge the supply-demand gap for quality dairy products worldwide.
Access to products is one of the material topics identified in the double materiality stakeholder analysis. The dairy industry is characterized by a global imbalance between demand and supply. Traders fulfill a unique role in the market by bridging this gap. This gap exists because local producers often lack the capabilities and/or appetite for doing business on a global scale and managing the accompanying risks. Numidia plays a crucial role in filling this gap and thereby making dairy products available for the many people who would otherwise be denied access to these products. This fully aligns with our vision, “We believe that everyone worldwide should be able to enjoy the benefits of quality dairy products. We see it as our task to contribute to making that happen!”
Because of our comprehensive product portfolio (as described in chapter "Business model"), we serve as a one-stop-shop for all dairy commodities. We understand the unique market dynamics of each product category. Through trading in the full range of products, Numidia has gained expert market knowledge. Our business model, which combines the trading in both physical products and derivatives, creates hedging opportunities that benefit both Numidia as well as customers and suppliers.
This combination is of great strategic value. On the one hand, there is a link between the physical and derivative markets but on the other hand, they can still show distinct price developments. By tracking the developments in both markets, we gain a better overall picture of the dairy commodities market and of the most promising trading opportunities. Numidia can take advantage of arbitrage opportunities related to time, geography, products and markets. This gives Numidia an edge over many competitors.
Another material topic is Healthy dairy products.
According to the British Dietetic Association, the benefits of dairy are significant. “For many people, milk and dairy play an important role within a healthy balanced diet. Milk and dairy foods are affordable, safe to consume daily, wholesome and a delicious source of essential nutrients. Milk and dairy typically provide almost one-third of our recommended calcium intake, but the nutrition provided by dairy products goes far beyond calcium alone. A single glass of semi-skimmed milk provides protein, phosphorus, potassium, iodine, riboflavin and pantothenic acid and a massive 72% of our daily need for vitamin B12. The main dietary source of B12 for vegetarians is dairy.
Together, the nutrients in milk and dairy benefit the body in a number of ways:
Keep muscles, bones, nerves, teeth, skin and vision healthy
Release energy from foods and reduce tiredness and fatigue
Maintain healthy blood pressure
Support normal growth and brain development
Support the normal functioning of the immune system”
By supplying these products globally, Numidia aims to contribute to the well-being of people everywhere.
We observe a growing interest in health and well-being around the world. This is partly driven by aging populations in more developed regions. As a result, the demand for high-protein products is increasing. Numidia’s product portfolio includes a wide range of high-protein products, which we consider a strategic growth opportunity for the years to come.
Research and development activities are limited given the nature of the company’s business and operations, and are therefore not represented in the strategic pillars.