European Commission merger conditions for FrieslandCampina raw milk
When it approved the merger of Friesland Foods and Campina in December 2008, the European Commission placed conditions on raw milk to prevent FrieslandCampina dominating the raw milk market in the Netherlands.
The conditions are:
- FrieslandCampina is obliged to make raw milk available to dairy companies in the Netherlands that process raw milk into fresh dairy products and/or naturally matured cheese, subject to predefined conditions.
- To encourage FrieslandCampina member dairy farmers to switch to another buyer of raw milk, a departure scheme applies, which provides for a start up premium.
The conditions apply to 1.2 billion kilos of standard milk of Dutch origin (annual supply), and not therefore to German or Belgian member milk, nor to organic or biodynamic milk.
Dutch Milk Foundation
The independent foundation, DMF (Dutch Milk Foundation) is responsible for implementing the departure scheme for Friesland Campina’s Dutch member dairy farmers. In addition, producers of fresh dairy products and naturally matured cheese in the Netherlands can buy, via DMF, Dutch raw milk from FrieslandCampina.
By clicking on one of the tabs above, you can find out more about making raw milk available to third parties, the departure scheme for member dairy farmers and DMF.
Making raw milk available to third parties
FrieslandCampina is obliged to make raw milk available subject to predefined conditions. This obligation applies to the fresh dairy business in Nijkerk, now sold to Arla Foods, the cheese business in Bleskensgraaf, which is yet to be sold, and to third parties in the Netherlands who wish to start up or develop the production of fresh dairy products and/or naturally matured cheese. The buyers must be registered with the Dutch Dairy Board (Productschap Zuivel) as an industrial processor of raw milk in the Netherlands.
The standard term of the contract is twelve months. The minimum order period is two to six months, depending on the contract volume. Buyers are required to purchase at least two million kilos of milk every month. The price is the FrieslandCampina guaranteed price, less one per cent for the first five years, with a settlement for taxes, transport and quality control.
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Start up premium for member dairy farmers
Dutch member dairy farmers who wish to cancel their membership of FrieslandCampina and who plan to supply their milk to another buyer of raw milk in the Netherlands will receive a start up premium of 5.00 euros for each 100 kilos of milk. The milk volume supplied in the previous calendar year determines the level of the premium. The premium is paid within two months of a dairy farmer who has actually started to supply milk to another buyer. If a dairy farmer ends his or her business or returns to FrieslandCampina within three years, the departure premium is to be repaid pro rata.
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Dutch Milk Foundation
The Dutch Milk Foundation (DMF) is responsible for implementing and monitoring the availability of raw milk to third parties and the departure scheme for member dairy farmers. For the operational implementation, DMF uses the facilities and expertise of the Dutch Dairy Board. DMF has its own Board, which is appointed by the Dutch Minister of Agriculture, Natural Resources and Food Quality. The Monitoring Trustee, an organisation appointed by the European Commission, will supervise the implementation of the measures imposed by the European Commission.
Information and registration
All information for dairy farmers and interested buyers of raw milk is available from the Dutch Milk Foundation in Zoetermeer (the Netherlands).
Member dairy farmers can also consult the member website of FrieslandCampina and the office and field staff of FrieslandCampina’s Co-operative Affairs department.
Dutch Milk Foundation
P.O. Box 256
NL-2700 AG Zoetermeer
t +31(0)79 368 1919
www.stichtingdmf.nl
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