Business model & value chain

The visuals below show the main characteristics of the upstream and downstream value chain and the company's position in the dairy and transport value chains.

Our products and services

Our inputs: milk, cheese and other raw materials

Besides milk and cheese, the main resources are transport equipment and fuel. Milk is mainly supplied by dairy farmers under contract to Royal A-ware. Thanks to our personal contact with dairy farmers and our no-nonsense approach, we continue to see growth in the number of dairy farmers supplying milk to us. Next to milk supplied by dairy farmers, we also buy externally available milk. By combining these two, we can continue to purchase enough milk to produce our dairy products.

Our outputs: dairy products

We make various milk and cheese products: milk, yoghurt, mozzarella, whipped cream, different types of cheese, as well as grated and melted cheese. Royal A-ware produces mainly private label products and supplies the food industry, retail and food service customers. The main market for us is Europe, but we have customers worldwide. With our transport company, we are also specialist in transporting agricultural products, animal feed, chilled food products, dry and liquid food products. The main markets for our transport activities are in north-western Europe.

Overview of sustainability-related targets in terms of significant groups of products and services, customer categories, geographical areas and stakeholders:

Type

Target

Significant products: 

Dairy products 

Nutritional value i.r.t. environmental impact 

Greenhouse gas reduction targets 

Targets in respect of dairy farming 

Significant services: 

Road transport 

Greenhouse gas reduction targets 

Significant customers: 

Specific to A-ware Dairy: retail, food service, food industry 

Nutritional value i.r.t. environmental impact 

Greenhouse gas reduction targets 

Targets in respect of dairy farming 

Specific to AB Texel: Producers and/or processors of agricultural products, dairy products, animal feed and building materials. 

Greenhouse gas reduction targets 

Geographical areas 

No targets have been set on specific geographical areas 

Stakeholders (other than customers) 

Dairy farmers 

Target resilient dairy farming 

What are the risks and opportunities?

Royal A-ware has identified the following risks and opportunities:

Interaction between risks and opportunities in relation to strategy

Royal A-ware has conducted this analysis on impacts, risks and opportunities in relation to ESG-topics for the first time. As a result, no changes of material impacts, risks and opportunities from the previous reporting period can be reported.

How do we engage our stakeholders?

By structuring our organisation around customers and markets, we seek common ground to address societal challenges and foster partnerships. Our stakeholder engagement is deeply aligned with the company's purpose and strategy. We strive for open, meaningful and effective dialogue with both our internal and external stakeholders about not only our activities, but also about their needs and expectations. This approach enables mutual learning and ensures that diverse perspectives are taken into account and embedded in our ESG strategy. For further details, refer to the 'Processes' column in the table below.

Stakeholder engagement overview (non-exhaustive)

Stakeholders

Processes

purpose

Employees

Individual employees

Regular meetings, employee development process, regular video updates by CEO, Speakap and AB Connect.

consultation

Work councils

inform, consult

Suppliers

Through collaboration with partners

Regular meetings

consultation

Individual suppliers

Government

At different levels with representatives in all the countries where we operate.

Theme meetings, multi-stakeholder projects, through membership of industry associations

inform, consult

Financial institutions

Financial institutions

Bilateral meetings

inform, consult

Industry associations / NGOs

NZO, BCZ, ZuivelNL, Gemzu, VNO-NCW, EDA, TLN,

Through direct or indirect membership

inform, consult

Customers

· Retail
· Food industry
· Food service
· Agriculture
· Animal feed producers

Bilateral meetings

consultation

Dairy farmers

Individual farmers in the Netherlands, Belgium, Italy and Spain. Sounding panels in the Netherlands and Belgium

Meetings

inform, consult

Strategic partners

Various companies

Bilateral meetings

consultation

We carefully evaluate stakeholder input while upholding our responsibility to safeguard the long-term continuity of Royal A-ware. In doing so, we emphasise the creation of long-term sustainable value. We acknowledge that stakeholders may have diverse and sometimes conflicting perspectives and interests. Insights regarding sustainability-related matters are regularly communicated by the ESG director to the Sustainability Steering Group and the Management Board.