Today, FrieslandCampina has announced that it will accelerate and further expedite its purpose driven strategy nourishing by nature with an even stronger commitment to sustainability. FrieslandCampina proposes to its members the introduction of a certified Top Dairy line with extra focus on animals, nature, and climate: dairy with a lower CO2 equivalent, with a high score on animal welfare and on biodiversity. This Top Dairy line is aligned to our meadow grazing standard and the new standard for the intrinsic link between farmers and the available land for their operations.
In general member dairy farmers will still have room to grow their milk supply. However, this increase is possible within the boundaries of a growth arrangement, based on expected market demand. Growth over and above will lead to a reduced milk price for those farmers responsible for this extra supply.
Top Dairy line, towards balanced and market-driven growth
Trendsetting member dairy farmers that have committed themselves to sustainable and special milk supply will receive higher payments in line with market value creation for such milk. FrieslandCampina will also further invest to expand its existing sustainable and special milk flows. Expectations are that the first dairy products of the top line will be on supermarket shelves early 2019.
Hein Schumacher, CEO of Royal FrieslandCampina N.V.: ‘By accelerating our sustainability efforts we set the bar higher for dairy in general. The introduction of our sustainable Top Dairy line is a great example of this. With this we strengthen our purpose nourishing by nature. Increasingly better nutrition for our consumers and a good living for our dairy farmers. This is what it’s all about, now and in the future.’
Growth of the milk supply volume is possible within the scope of a pre-agreed growth arrangement. The arrangement aims to set an expected dairy market growth percentage. Production of more milk than this percentage will result in a deduction to the milk payment of 10 eurocent per kilo. This deduction brings the milk price for incremental volumes of milk in line with market prices for basic dairy products. The FrieslandCampina guaranteed price will remain the basis of the FrieslandCampina milk price.
Frans Keurentjes, Chairman of Zuivelcoöperatie FrieslandCampina U.A.: ‘Sustainable milk will pay-off, we are convinced of that. Being one of the leading dairy cooperatives in the world we ask our members to show strong commitment to meeting the demand for more sustainable and special milk flows. In addition to the higher payment for sustainability, we are aiming at well-balanced and market-driven growth. This will help us create a cooperative in which a next generation of farmers is guaranteed a future.’
Decision about the implementation of the proposal late 2018
FrieslandCampina will discuss the proposals with its member dairy farmers in the coming months. A decision will be taken in the course of this year and come into effect on 1 January 2019