Agreement for partial transfer of Belgian milk supply from FrieslandCampina to Milcobel

17 November 2015

FrieslandCampina Belgium N.V. has concluded an agreement to transfer the milk delivered by a part of its suppliers in Belgium to Milcobel cvba. Under the terms of the agreement, Milcobel will be buying and guaranteeing the purchase of milk from 443 dairy farm suppliers with effect from 1 February 2016. The agreement guarantees sustained milk sales to the suppliers concerned.

FrieslandCampina Belgium wants to align the volume of milk delivered to it by its suppliers more closely to market demand in Belgium. Partly through the increase in milk production during 2015, FrieslandCampina is currently accepting more milk than its operating company in Belgium can sell.

“FrieslandCampina Belgium has taken all steps possible to guarantee the continuity of the dairy farms. In Milcobel, it has now found a suitable partner for the transfer of part of this milk,” says FrieslandCampina Belgium’s General Manager Katrien Bousson.

The agreement states that Milcobel will assume and guarantee the purchase of approximately 180 million litres of milk a year from 443 dairy supply farms. It is also inviting the dairy farmers concerned to become members of the Milcobel cooperative from 1 February 2016, the date the agreement takes effect. This will then guarantee the sustained purchase of milk from these suppliers. The dairy farmers can decide for themselves whether to become members.

FrieslandCampina Belgium will continue to collect milk from its remaining 441 dairy suppliers and its 28 Belgian member dairy farmers. The agreement will result in the loss of two jobs in the milk management department at Aalter. The transfer will not affect the remaining 1540 FrieslandCampina staff in Belgium. The FrieslandCampina product range on the Belgian market will also remain unchanged.