Campina stimulates conversion to organic production

29 March 2008

From now on Campina farmers in the Netherlands who convert to organic dairy farming can count on a financial compensation during the two-year long conversion period. During this time production is converted to organic methods but the milk cannot as yet be sold as organic. By means of the financial compensation, Campina anticipates stimulating dairy farmers to convert from standard to organic production. With more than one hundred organic dairy farmers, Campina is the largest processor of organic milk in the Netherlands. Sales of organic dairy are growing steadily and Campina is therefore in need of extra supplies.

During the two-year conversion period, dairy farmers will receive a conversion compensation of two euros for every 100 kilos of milk, excluding VAT. The compensation is based on the extra costs dairy farmers incur during this period. The supplement for milk that may be sold as organic milk currently amounts to 7.78 euros per 100 kilo milk (excluding VAT). This supplement is also based on the additional costs of organic production.

Welcome premium
Dairy farmers who present Campina with a serious conversion plan in 2008 can also receive a welcome premium of 250 euros. In addition, dairy farmers no longer have to pay a deposit when they register for organic production. Dairy farmers who sign up now are assured that their milk will indeed be sold as organic milk after the conversion period and that they can therefore also be confident of the organic supplement to the milk price.

Sales develop positively
Consumers and professional buyers are demanding more and more organic dairy. In 2007 Campina again sold substantially more organic dairy than in earlier years.
In 2007 a new packaging line and communication strategy was designed for Groene koe, Campina’s organic dairy brand sold in Dutch supermarkets. ‘You are what you choose’ is the brand’s motto. The advantages for the consumer in choosing organic dairy are emphasised on the packaging and in other communication statements. Partly as a result hereof, the average sales per shop of Groene koe have risen by 20 per cent. In the out of home market, sales of Groene koe increased by 60 per cent in 2007, partly as a result of the added emphasis caterers, for example, place on sustainable purchases.
Likewise Zuiver Zuivel, Campina’s organic dairy for the Dutch natural feed channel, continues to be a success: ten per cent more sales in 2007. The dairy farmers on the packaging ensure the bond between consumer and farmer is strengthened.

Sales develop positively
Consumers and professional buyers are demanding more and more organic dairy. In 2007 Campina again sold substantially more organic dairy than in earlier years.
In 2007 a new packaging line and communication strategy was designed for Groene koe, Campina’s organic dairy brand sold in Dutch supermarkets. ‘You are what you choose’ is the brand’s motto. The advantages for the consumer in choosing organic dairy are emphasised on the packaging and in other communication statements. Partly as a result hereof, the average sales per shop of Groene koe have risen by 20 per cent. In the out of home market, sales of Groene koe increased by 60 per cent in 2007, partly as a result of the added emphasis caterers, for example, place on sustainable purchases.
Likewise Zuiver Zuivel, Campina’s organic dairy for the Dutch natural feed channel, continues to be a success: ten per cent more sales in 2007. The dairy farmers on the packaging ensure the bond between consumer and farmer is strengthened.