The temporary measure to stimulate member dairy farmers not to let the milk supply increase from 1 January 2016 to 11 February 2016 inclusive has been terminated. The temporary measure resulted in a reduction of the milk supply of a total of about 35 million kilo of milk in the past six weeks. The measure was needed because FrieslandCampina had insufficient processing capacity available for the period until mid-February due to a stronger growth of the milk supply than was expected.
About 60 percent of the member dairy farmers participated in the arrangement. A total of 14.1 million euro was paid to the member dairy farmers participating in the arrangement (2.00 euro per 100 kg milk). Thanks to the temporary measure, combined with a number of other measures, FrieslandCampina was able to buy all the milk from the member dairy farmers during the past six weeks (with the exception of the period of black ice period in the north of the Netherlands).
Processing capacity still tight
By now, FrieslandCampina has sufficient capacity again to collect all the raw milk, because extra processing capacity has been made available within and outside FrieslandCampina. Expectations are that the processing capacity will remain tight until the summer.