FrieslandCampina Members’ Council approves 2016 financial statements

13 April 2017

At its regular meeting on Wednesday 12 April, the Members’ Council of Zuivelcoöperatie FrieslandCampina U.A. approved the financial statements for 2016. It also approved the decision by the Cooperative Board to adopt the 2016 financial statements of Royal FrieslandCampina N.V. At the same time it approved a performance premium and the issue of member bonds on top of the guaranteed price that member dairy farmers receive for the farm milk they supplied throughout 2016. During the Members’ Council it was also announced that Peter Elverding has decided to retire of the Supervisory Board of Royal FrieslandCampina N.V. because of health reasons.

Peter Elverding had been a member of the Supervisory Board since 2008. He was Chairman of the Remuneration and Appointments Committee. Frans Keurentjes, Chairman of the Supervisory Board of Royal FrieslandCampina N.V. and Chairman of Zuivelcoöperatie FrieslandCampina U.A: ‘Peter is an experienced and competent director who has made a really valuable contribution to the development of FrieslandCampina following the merger in 2008. We thank him for his commitment and involvement and we wish him and his family every strength.’

Value creation
The total paid out to the member dairy farmers for 2016 on top of the guaranteed price was 371 million euro (2015: 355 million euro). The performance premium was 236 million euro (2.19 euro per 100 kilos of milk excluding VAT). The distribution of member bonds for 2016 amounted to 135 million euro (1.25 euro per 100 kilos of milk excluding VAT). Together the value creation (performance premium and distribution of member bonds) per 100 kilos of milk added up to 3.44 euro (2015: 3.53 euro), a decline of 2.5 percent.

Performance premium
In September 2016 the member dairy farmers received an interim payment of 1.17 euro per 100 kilos of milk. This was 75 percent of the pro-forma performance premium for the first half of the year (0.595 euro per 100 kilos of milk for a full year). The final settlement will be effected in April 2017, based on FrieslandCampina’s results for the financial year and the quantity of milk supplied by the dairy farmer in 2016. The performance premium over 2016 amounts to 2.19 euros. This means that member dairy farmers will still receive a performance premium of 1.595 euros per 100 kilos of milk in April 2017.

Member meetings
From 13 until 30 March, the Board of the Cooperative and the management of the company discussed the annual results of Royal FrieslandCampina N.V. with the member farmers at 80 member meetings.