A good living for our farmers
FrieslandCampina’s aims to add as much value to milk as possible. This value creation becomes evident in various ways, for example in the level of the performance premium member dairy farmers receive for their milk on top of the guaranteed price.
FrieslandCampina has more than 140 years of experience in the dairy farming sector and applies the knowledge gained to help dairy farmers in countries in Asia, Africa and Eastern Europe to further develop their farms.
This is in line with the United Nations’ Sustainable Development Goal: ‘Decent work and economic growth’ (SDG 8).
Value creation with milk: the FrieslandCampina milk price explainedThe milk price system of FrieslandCampina is the way in which the FrieslandCampina milk price is determined. It's one of the ways we add value to milk.
More money for members, but decreased value creation
Over 2017, in addition to the guaranteed price, a total of 142 million euros was paid to member dairy farmers (2016: 371 million euros). Of this, the performance premium was 110 million euros (1.03 euros per 100 kilos of milk, excluding VAT). The issue of member bonds over 2017 amounts to 32 million euros (0.30 euro per 100 kilos of milk, excluding VAT). In total, the performance premium and the issue of member bonds per 100 kilos of milk amount to 1.33 euros (2016: 3.44 euros), a decline of 61.3 percent. The decrease is due to the adjustment of the profit appropriation and a lower company profit. For an elaborate description of FrieslandCampina’s financial performance and profits in 2017, please refer to page 30 of the annual overview 2017 or the key financial figures.