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 Goals: ‘No poverty’ (SDG 1), ‘Zero hunger’ (SDG 2), ‘Gender equality’ (SDG 5), ‘Decent work and economic growth’ (SDG 8), ‘Responsible consumption and production’ (SDG 12) and ‘Partnerships for the goals’ (SDG 17).
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 2018, a total of 62 million euros has been paid to member dairy farmers on top of the FrieslandCampina guaranteed price (2017: 142 million euros). Of this, 48 million euros (0.46 euro per 100 kilos of milk) was allocated to the performance premium. The issue of member bonds over 2018 amounted to 14 million euros (0.13 euro per 100 kilos of milk). In total, the value creation (the performance premium and the issue of member bonds) per 100 kilos of milk amounted to 0.59 euro (2017: 1.33 euro). The decline is due to a lower result. For an elaborate description of FrieslandCampina’s financial performance and profits in 2018, please refer to page 19 of the annual magazine 2018 or the key financial figures.