Strategy and value creation

Business model and stakeholder analysis

Business model

To understand who our key stakeholders are, it is crucial to understand our business model. Numidia acts as the link between dairy producers on the one hand, and producers, food service, retail and distributors on the other.

Traditionally, the ability of these parties to conduct business is restricted by their geographical footprint, their ability to finance working capital, a mismatch in product specifications, product knowledge, supply chain knowledge, shelf life of products, etc. As a trader, Numidia helps them overcome these restrictions, enabling the connection from supplier to distributor or producer globally.

The production of dairy products is unevenly spread across the globe. To ensure access to dairy products in all parts of the world, the industry requires parties with a global presence and a broad product portfolio.

product portfolio

Our product portfolio offers a wide range of dairy commodity products, including fat and protein products. This offers several advantages:

  • We can offer customers a one-stop shop for dairy commodities.

  • We understand each product category’s unique market dynamics. By trading in the full range of products, Numidia has expert market knowledge and opportunities to hedge. Combined with the ability to trade in derivative markets (through futures and options), this creates a very powerful combination.

Stakeholder analysis

The goal of the stakeholder analysis is to identify the needs and priorities of our key stakeholders to tailor our offering and strategy toward this. The topics included in the assessment are focused on the areas of sustainability and economic performance. Numidia has identified several key stakeholder groups. The overview of the stakeholders identified can be found in the appendix.

material topics

Numidia has determined its material topics by identifying actual and potential impacts, and assessing the significance of each of these topics. The assessment has been performed with support of internal as well as external stakeholders, taking into account factors such as regulations, trends or other drivers. The overview of the applicable material topics can be found in the appendix.

double materiality stakeholder assessment

We have applied the concept of double materiality in our approach.

The materiality analysis is double in the sense that it assesses the identification of material topics from two angles:

  • The first angle is to identify the most significant risks for companies. This is also called the “outside-in” perspective, referring to external risks that can or already do affect internal business operations. This is reflected as “Business impact on Numidia” on the Y-axis of the stakeholder analysis.

  • The second angle is to identify the impact the company has on sustainability and is known as the “inside-out" perspective. This is reflected as “Stakeholder relevance” on the X-axis of the stakeholder analysis.

The result of this double materiality test is the starting point for tailoring our value creation model to the needs of our stakeholders.


We took a multifaceted approach to gathering input from our stakeholders. Our strategy focused on requesting input on material topics during existing and ongoing interactions with stakeholders as much as possible. In our experience, this leads to a higher response rate compared to stand-alone requests.

The stakeholder analysis was based on the following input and processes:

  • Net promoter score (NPS) customer inquiry. This annual customer satisfaction survey was used to assess the importance that customers attach to material items.

  • Many of our customers and suppliers use their own terms. Multinational companies in particular create their own terms and conditions and thereby have a leading role in setting the new standards for (among other things) sustainability requirements.

  • Throughout the year, we conduct audits on suppliers and warehouses. These audits are primarily conducted on-site and include in-depth inquiries into the strategy and needs of the suppliers.

  • Numidia is also audited several times per year. The scope of these audits varies among sustainability (e.g. EcoVadis), quality systems (e.g. BRC), financial statements (KPMG) and treasury processes (Deutsche Bank). The audit plans and auditor scopes provide a lot of information on the importance they attach to material topics.

  • As part of the annual "Great Place To Work" process, an anonymous employee questionnaire is used to measure the overall satisfaction of employees on various topics (Trust Index). The material topics are embedded in the scope of the questions.

  • In addition, a separate assessment was done to quantify the impact of the material topics on Numidia. The input was collected from all departments within Numidia.

  • Last but not least, we maintain a continuous dialogue with all stakeholders throughout the year as part of our strategy and vision (long-term relationships).

This combination of sources has enabled us to create a balanced and well-substantiated assessment of the material topics.