In the latest episode of the Strong Source podcast, Alexander and Martijn had an engaging conversation with Edwin van Stipdonk, the Chief Commercial Officer (CCO) of Interfood, a global leader in the dairy trading industry. Edwin’s journey from a junior trader to the CCO of a prominent family-owned business offers valuable insights into the complexities and opportunities within the dairy commodity market.
From Junior Trader to CCO: A Gradual Ascent
Edwin’s career at Interfood is a testament to the power of perseverance and learning. Starting as a junior trader in the European market, Edwin quickly adapted to the dynamic nature of dairy trading. He described his journey as “gradual,” with each step bringing new responsibilities—from managing a trading book to overseeing entire regions like Europe and Asia. His eventual promotion to CCO was a natural progression, driven by his ability to understand market dynamics and lead with a team-oriented approach.
“Each and every time you become maybe slightly less operational,” Edwin noted, reflecting on how his role evolved over time. However, despite moving into higher management, Edwin emphasized that the essence of his work remains rooted in trading. He still finds energy in “succeeding as a team or as a P&L,” showing that the passion for trading never truly fades, even as responsibilities shift.
Understanding the Dairy Market’s Unique Dynamics
Dairy is a unique commodity market, significantly different from others like cocoa or oil. Edwin highlighted that despite its size—dairy is actually larger than many other soft commodities—it remains less known among commodity traders. One reason is that “dairy is consumed to a big extent, maybe 90 percent of its capacity where it’s made,” which means there’s less need to ship it globally compared to other commodities. This domestic consumption pattern, combined with a relatively undeveloped futures market, has kept dairy trading somewhat niche.
However, Edwin sees this as an area ripe for growth. Over the past decade, the dairy futures market has begun to take shape, especially after the EU lifted milk production quotas in 2015. Despite its conservative nature, Edwin believes the industry is slowly but surely embracing the opportunities that futures and risk management tools can offer. “It’s a lot of education,” he explained, as companies gradually realize the benefits of these financial instruments.
The Role of Risk Management in Dairy Trading
Risk management is a core element of Edwin’s strategy at Interfood. As he discussed the evolution of the dairy market, Edwin emphasized the importance of educating the industry on the advantages of futures trading. Historically, many European dairy cooperatives viewed futures as a risk rather than a tool to mitigate it. However, as the market evolves and the need for better risk management becomes apparent, this mindset is slowly changing.
Interfood itself has been at the forefront of this shift. Edwin mentioned that the company has invested heavily in educating its partners about the benefits of futures and other risk management tools. This education is paying off, as more industry players are beginning to see the value in using these instruments to protect against market volatility.
Challenges and Opportunities in the Dairy Industry
Looking forward, Edwin sees sustainability as both the biggest challenge and opportunity for the dairy industry. With a massive CO2 footprint, dairy farming is under increasing scrutiny from consumers and regulators alike. However, Edwin is optimistic that the industry can adapt and thrive by embracing more sustainable practices. “We try to help co-ops and farmers through multiple interventions to reduce their footprint,” he explained, highlighting Interfood’s commitment to leading the industry toward a more sustainable future.
One intriguing aspect of the conversation was Edwin’s insight into the global potential for dairy consumption. As wealth increases in developing countries, so too does dairy consumption. “The correlation between wealth and dairy consumption is there,” he noted, predicting significant growth in markets like Asia, where cheese and high-protein products are becoming more popular.
Final Thoughts: Building a Future-Ready Organisation
Edwin’s leadership at Interfood is characterized by a strong focus on innovation and team building. He credits the company’s success to its culture and its willingness to invest in the future, whether through sustainability initiatives or by embracing new technologies in trading. His advice to young traders reflects this forward-thinking approach: “Be true to yourself. You will see within two, three years whether you are successful… and if you see this, it’s a career for life.”
Edwin’s story offers a compelling look into the dairy trading world, revealing both its unique challenges and its untapped potential. His journey from a junior trader to the CCO of Interfood serves as an inspiring example of how passion, adaptability, and a commitment to continuous learning can lead to success in the ever-evolving commodities market.
Listen to the full episode to hear more about Edwin’s experiences and insights into the dairy trading industry:
What is the Strong Source Podcast?
Our mission with the Strong Source podcast is to educate and inform, by creating a community where experts and guests from the entire commodity industry can share their unique perspectives. Martijn Bron, ex-cacao trader, and Alexander Sterk, ex-dairy trader and founder of Vesper, have a deep-passion for this industry, which inspired
