Aris & Jehannes - Traders, Farmel
According to Farmel traders Aris van Ommeren and Jehannes Miedema, there is nothing more beautiful than trading. The multitude of contacts, coming up with solutions quickly, and then sealing the deal. Then comes the thrill. "If I do my job well, I can achieve great results and help many companies."
Aris & Jehannes - Traders
The dairy trade never stops. Even during the interview, Aris has to take a call. "It even happens that I buy a batch over the phone, while a colleague next to me has already resold it without consultation. This is especially common with liquid products like milk and cream that cannot be stored for long. In the case of butter and powder, trading can also happen quickly, but in this category, a deal can take up to a week to finalize," explained Aris, who is responsible for Dairy (butter and powder).
Farmel has its own dairy farmers, but also trades on the open market. How does that work?
A: "Our milk production team is responsible for approximately 250 dairy farmers from whom we collect the milk with our own transport company. A small portion goes to Vecozuivel. Most of the milk is supplied to our partners with whom we have long-term agreements and for whom we (often) take full responsibility for the milk supply. This can be seen as a kind of logistical service. The other team, our trading team, focuses on buying and selling large volumes of milk, cream, whey, butter, powder, and concentrate at various factories and processors."
Last year, Farmel acquired Vecozuivel. What are the further plans?
A: "In recent years, we have experienced significant growth, as have our customers. If we continue doing what we are doing now, we will continue to grow autonomously through our established partners. In addition, our focus is on sustainable milk streams, particularly organic milk, the Better Life label, and Planet Proof milk. We see many opportunities in this area. Our priority is to further expand our liquid product line with milk from our own dairy farmers. This means we are looking for new dairy farmers. Furthermore, our ambition is to expand the Planet Proof label to include butter."
How does that work in daily practice?
A: "We start the week with a commercial meeting on Monday where we discuss the current market situation, new opportunities, and developments. Trading begins on Tuesday, and Wednesday is the busiest trading day. So, you need to be well-informed about price movements and available allocations to be able to respond immediately with a bid."
J: "You easily get up to 200 phone calls a day!"
As a trader, you must not have any reservations.
A: "You quickly learn that here. How? By just doing it. Moreover, you pick it up quickly from colleagues' conversations. In a few weeks, you get used to it. You have to. In this fast-paced trading environment where prices can change hourly, there is no time to wait for an email response."
‘You can achieve a high position at a young age with us’
Jehannes, you have been with Farmel for five months now and are responsible for Milk (milk collection and liquid trade). How is it going?
"I chose Farmel because I wanted to work for a smaller Dutch company. This offers freedom in my work and influence on the direction. Moreover, I find it interesting to work for a trader who deals with both suppliers and customers. Farmel has a unique position in the market; in addition to dairy trading, they also have their own dairy farmers. They are working on further developing sustainable milk streams and are focusing on value creation in collaboration with the chain. This puts me right in the middle of the market, doing business with everyone, which makes it incredibly fascinating. As a trader, I am constantly in contact with 50 suppliers in Northwestern Europe. If you work for a dairy producer, for example, you have to sell 1000 cheeses from the line every week, and your scope with the outside world is very different."
What makes trading the best job that exists?
J: "It's really exciting to close a deal, and in this job, you can experience a lot of those thrills quickly. That actually applies to everyone who works here, every single day."
When is someone successful?
A: "How good you are makes a world of difference. A good trader can sell two or three times as much as a colleague. So, you can really stand out. That's not always the case in other roles."
Does that thrill come with pressure?
A: "Look, what we do is find a solution for the market's imbalance. Failures in factories or other issues have immediate significant consequences. A factory that is (partially) shut down quickly runs into problems because the milk supply continues. A huge problem can arise in a matter of hours. We are the party that solves it, which requires quick thinking, knowing immediately where to take that milk, and making decisions. It's possible to turn it into concentrate or powder. The logistics involved can be quite challenging. Every week starts with a new puzzle. If I do my job well, I can achieve great results and help many companies. Sometimes a bit of stress creeps in, but I simply love the thrill that comes with it."
You mentioned that a trader must think quickly. What other skills are important?
J: "Traders largely make their own deals. To be successful in that, you need to be analytically strong and feel responsible. The traders in our team are very entrepreneurial; they even seek out more problems to get more out of it. They see opportunities and seize them. In other words, creativity, goal orientation, focus, self-starting ability, but also courage are essential. Don't run away from the challenges that come your way, face them and fix it."
A: "And it's okay to make a mistake, like buying something too expensive or selling too cheap. The key is to dare, because when in doubt, the opportunity is already gone."
What does Farmel do to prepare employees for this?
A: "The structure is set up in a way that allows progression from sales support to Customer Management Officer in a few years, and then on to a trader. This way, you get to know all aspects of the company, such as logistics, product specifications, contracts, negotiating, and closing deals. Once someone has mastered the trade, there is room for growth. Farmel supports this with language courses and sales training. If you want something else, that's possible; we don't think in boxes. This way, you can achieve a high position at a young age with us."
Do you see that mentality reflected in the work atmosphere?
J: "Well, there are no show-offs working here, if that's what you mean. Colleagues are open and willing to collaborate. We all work in one space and easily move our chairs towards each other for a quick discussion. The atmosphere is informal and friendly. We play table tennis together, have lunch together, socialize, and we go out together at least four times a year. It's not mandatory, but many of us come from the countryside or agricultural backgrounds. I think this explains the no-nonsense, hands-on mentality; most of us don't care much for frills. What matters to them is the deal."
Do you want to take that next step? Then get in touch with us.
Photo: Aris van Ommeren (l) and Jehannes Miedema (r) in the space where it all happens (photographer Pim van der Maden)
[Published: October 2023]
