Milchpreis-Glossar

Milk produced in accordance with the organic and supplementary biodynamic production methods applying in the country in which the milk is produced, and that is qualified by the board as special milk.

The amount of the supplementary cash payment depends on the financial results of FrieslandCampina and the retained earnings policy adopted. In the financial year 2022-2025, FrieslandCampina will distribute 40 percent of its net profit, based on the guaranteed price and net of the interest on member bonds, member certificates and profit attributable to participating interests, to its member dairy farmers in cash in the form of a supplementary cash payment. An interim payment can be made in September based on the results of the business and the volume of milk supplied. The interim payment amounts to 75 percent of the pro forma supplementary cash payment for the first six months of the year. The final settlement will take place in April of the following year based on the annual results of the business and the total volume of milk supplied.

The cooperative schemes involve a deduction of € 0.35 uros per 100 kilogrammes of milk for the financing of the Foqus planet Sustainable development premium, which rewards the member dairy farmers for their results on animal health and welfare, climate, biodiversity and outdoor grazing.

The price of a kilogramme of fat. This price is used to calculate the milk price (together with the protein price and the lactose price). The protein, fat and lactose content are shown in euros per 100 kilogrammes of milk and in a ratio of 6:4:0.

Costs that are the same for each dairy business, such as payments for quality control and advice, Foqus planet, and administration expenses. The fixed costs amount to 151 euros monthly, capped at 1.51 euro per 100 kilogrammes of milk.

FrieslandCampina has two guaranteed prices: a guaranteed price for farm milk from regular farms and a guaranteed price for farm milk from organic and biodynamic farms. In both cases, the guaranteed price is the price that the company guarantees to pay member dairy farmers for the farm milk they supply. The guaranteed price reflects the average farm milk price to be paid by a number of dairy companies in northwestern Europe, including supplementary payments, registered reservations, seasonal supplements, quantity supplements, maximum quality supplements, and cooperative supplements or charges. The amount for regular farms applies for an average supply of 925,000 kilogrammes of farm milk and for organic and biodynamic farms for an average supply of 550,000 kilogrammes on annual basis and is paid out in the milk components: protein, fat and lactose, in a fixed ratio of 6:4:0. The guaranteed price is published per 100 kilogrammes of farm milk, at 3.58% protein, 4.45% fat and 4.54% lactose, exclusive of VAT.

Watch the video about FrieslandCampina's milk pricing system.

The milk price that FrieslandCampina pays its member dairy farmers annually consists of the guaranteed price, cash subsequent payment, the outdoor grazing premium, the special milk flows premium and the company contribution for Foqus planet.

Milk produced in accordance with the organic production methods applying in the country in which the milk is produced, and that is qualified by the board as special milk.

The amount in euros per 100 kilogrammes of milk, consisting of the milk price, the interest on member certificates, fixed member bonds and free member bonds, and the profit appropriated to the general reserve.

The price of a kilogramme of protein. This price is used to calculate the milk price (together with the fat price and the lactose price). The protein, fat and lactose content are shown in euros per 100 kilogrammes of milk and in a ratio of 6:4:0.

Cow’s milk qualified by the board as special milk on the grounds of Article 9.1 of the Articles of Association.

Within FrieslandCampina there are special milk flows for which milk must meet special requirements. Member dairy farmers who supply this milk receive a premium for this. Currently, there are four special milk flows for which members receive an extra bonus. These are: milk with the On the way to PlanetProof quality mark (€ 5.00 per 100 kilogrammes), VLOG-Pro Weideland (€ 1.00 per 100 kilogrammes), Landliebe (€ 1.00 per 100 kilogrammes) and Organic Dynamic milk (€ 4.10 euros per 100 kilogrammes).