Cooperative Board and Members' Council make decisions for future-proof FrieslandCampina
Several decisions were taken and announced at the Members' Council of Zuivelcoöperatie FrieslandCampina U.A. at its final meeting of 2022. The Milk Money Regulation will be amended for the 2023-2025 period and fat will be given a higher value in the pay-out of the milk money compared to protein and lactose. In addition, the system of the Foqus planet sustainability programme is to be revised. Member dairy farmers will receive better advance insight into what sustainability efforts will yield financially. More money will be made available for sustainability with a focus on climate change: dairy farmers will receive more money for achieving greenhouse gas reductions. From next year, FrieslandCampina will also be expanding its cooperative operating area in Belgium and Germany. Finally, the Members' Council was updated on the latest developments in the company.
Sybren Attema, chairman of Zuivelcoöperatie FrieslandCampina U.A: 'Over the past year, an intensive dialogue has taken place across the ranks of our cooperative on the revision of our sustainability programme Foqus planet, changes to the Milk Money Regulation and the expansion of the cooperative operating area. The high turnout at the local members' meetings and the willingness to contribute ideas and talk about the future of our cooperative has led to innovations and changes with a clear focus on achieving our climate goals. The decisions we have taken represent the concrete implementation of our cooperative vision 'Road Map to 2030'.'
The principal changes with effect from 2023
Foqus planet system
The Foqus planet system will be modified, giving members insight, ahead of time, into where the focus lies and what specific sustainability efforts will yield in financial terms. The updated system makes it possible for the cooperative and the company to determine which indicator(s) to focus on. Climate change is currently a key issue in relation to which FrieslandCampina wants to make accelerated gains: FrieslandCampina's Climate Plan includes a greenhouse gas reduction target of 33 per cent by 2030 compared to 2015 for operations on the farm. This is why a maximum supplement of 1.50 euros per 100 kilogrammes of milk will apply within the new system for greenhouse gas reduction.
Milk Money Regulation
In addition, the Milk Money Regulation has been amended for the 2023-2025 period. As of January 2023, fat will receive a higher value compared to protein and lactose in the calculation of the milk money. The ratio of protein, fat and lactose components will shift from 10:5:1 (2020-2022) to 6:4:0. As regards the guaranteed price, the following new standard contents apply per 100 kilogrammes of milk: 3.58 percent for protein; 4.45 percent for fat; and 4.54 percent for lactose. The retained earnings policy will remain unchanged: 40 per cent of net profit is distributed to member dairy farmers and 60 per cent is added to the company's equity.
Cooperative operating area
In Belgium, the cooperative operating area will be expanded to include the Aalter and North Antwerp/North Limburg regions. In northern Germany, a part of the state of Lower Saxony will be added in the second half of 2023. This means that dairy farmers who have their farms in these areas will be able to supply FrieslandCampina with milk after joining the cooperative.
Changes to the Board
Board members Angelique Huijben-Pijnenburg and Sandra Addink-Berendsen, the latter of whom also served as Vice Chair, will be stepping down as members of the Board of the cooperative and as members of the company's Supervisory Board. Sandra Stuijk and Herman Bakhuis will join the Board of the cooperative as of 13 December 2022.
Sybren Attema, chairman of Zuivelcoöperatie FrieslandCampina U.A: 'Angelique and Sandra have both made a significant contribution to the governance of the cooperative and to the supervision of the company. Besides being extremely effective, critical board members, we are also saying good-bye to two lovely and committed colleagues. I would like to thank them both from the bottom of my heart: for their boundless commitment and their managerial input over the past few years. I want to give Sandra Stuijk and Herman Bakhuis, our new board members, a very warm welcome and wish them every success on the board of our cooperative.’
As of 13 December 2022, the cooperative Board will consist of the following persons:
Sybren Attema (chairman), Elze Jellema (vice chair), Herman Bakhuis, Nils den Besten, Hans Hettinga, Cor Hoogeveen, Hans Stöcker and Sandra Stuijk.
Latest business developments
The Members' Council was updated on the latest developments in the company. FrieslandCampina aims to continue to grow in the areas of consumer food, affordable food, ingredients and specialised food. The key principle in this endeavour is to make the portfolio even more relevant to consumers and professional buyers. New products and innovations allow the company to respond to developments and trends in society. In addition to innovative and more sustainable dairy products and ingredients, several new plant-based products have now been added to the portfolio.
FrieslandCampina is facing significantly increased production costs across the board, including for raw materials, transport, and energy. The company has implemented necessary price increases where possible, as a result of which volumes in consumer markets are under pressure.
Risks related to economic developments and exchange rates in the Sub-Saharan Africa region (Nigeria) are expected to have a material, negative impact on FrieslandCampina group results for 2022. Also, adjustments in the production network have a long-term positive impact but lead to asset write-downs and restructuring provisions in the short term. Overall, CEO Hein Schumacher is positive about the development of the company's underlying results and the execution of its strategy but did not cite specific amounts ahead of the publication of the annual figures. FrieslandCampina will publish its annual figures on 21 February 2023.