Member Council of FrieslandCampina agrees with temporary measure in case the milk supply exceeds the processing capacity

22 November 2017

On 21 November 2017, the Member Council of FrieslandCampina agreed with a temporary provisional measure that can be put into effect in case the expected milk supply of the member dairy farmers exceeds the processing capacity of FrieslandCampina.

A proper balance between the milk supply, the processing capacity of FrieslandCampina and the market demand is conditional for optimum valorisation of the milk supplied by the members. In view of the many uncertainties about the development of the milk supply, the Cooperative Board and the Executive Board of FrieslandCampina have detailed a temporary provisional measure by way of precaution. This measure can be put into effect when the expected milk supply exceeds the processing capacity in the period from 1 January 2018 to 30 June 2018 inclusive.

FrieslandCampina invested in its processing capacity in conformity with its route2020 strategy in the past few years. However, the milk supply strongly increased. Expectations are that in the spring of 2018 (the spring peak) again more milk will be supplied than in the year 2017.

Implementation of the temporary measure depends on the scope and the duration of the expected imbalance between milk supply and effective processing capacity. FrieslandCampina will inform its member dairy farmers a minimum of 14 calendar days prior to putting the measure into effect. The measure will basically be put into effect for four weeks and remains in force as long as the expected milk supply exceeds the processing capacity. The temporary measure will be applicable to all member dairy farmers of Zuivelcoöperatie FrieslandCampina U.A. in the Netherlands, Belgium and Germany. All efforts are and will remain focused on preventing the measure from entering into force.