Annual milk price
The member dairy farmers in the Netherlands, Germany and Belgium are the joint owners of Koninklijke FrieslandCampina N.V. through Zuivelcoöperatie FrieslandCampina U.A. The annual milk price that FrieslandCampina will pay the member dairy farmers as of 2014 comprises:
- the guaranteed price
- the performance premium
- the meadow milk premium
- the special supplements (together the cash price) and
- the distribution of member bonds.
Protein, fat and lactose
As of 2014 the price paid for milk will be based on the value of the supplied kilograms of protein, fat and lactose in the ratio 10:5:1. The FrieslandCampina performance price comprises the milk price (as described above), plus the interest on member certificates and member bonds and the addition to the Company’s general reserve.
Guaranteed price, performance premium and member bonds
The profit of Royal FrieslandCampina N.V. in 2014-2016 will be divided (based on the guaranteed price and after deduction of the recompense on member bonds and the profit attributable to minority interests) like this:
- 45 percent will be added to the Company’s equity
- 35 percent will be paid out to the member dairy farmers as performance premium
- 20 percent will be paid out to the member dairy farmers in the form of fixed member bonds
The pay-out of fixed member bonds will be calculated on the basis of the value of the milk supplied during the financial year.
In September 2014 an interim amount based on the Company’s results for the first half of the year and the quantity of milk supplied was paid out for the first time. The interim pay-out amounts to 75 percent of the pro forma performance premium over the first half of the year. The final settlement will be paid out in April of the following year on the basis of the Company’s annual results and the total quantity of milk supplied.