Milk price glossary

Milk produced in accordance with the organic and supplementary biodynamic production methods applying in the country in which the milk is produced, and that is qualified by the Board as special milk.

Member dairy farmers of FrieslandCampina share in FrieslandCampina's net profit via a supplementary cash payment. The supplementary cash payment depends on FrieslandCampina's financial results and the established reservation policy. 40 percent of the company's net profit is paid out to the member dairy farmers as a cash payment, while 60 percent is added to the company's equity.

The cooperative schemes involve a deduction of €0.60 per 100 kilogrammes of farm milk to finance the Foqus Planet premium, which rewards the performance of member dairy farmers regarding animal health and welfare, climate, biodiversity, and grazing.

The price applicable to one kilogram of protein. This price is used (together with the fat price) to calculate the milk payment. The protein and fat prices are stated in euros per 100 kilogrammes and in a 5:4 ratio.

Costs that are the same for each dairy business, such as payments for quality control and advice, Foqus planet, and administration expenses. The fixed costs amount to 155 euros monthly, capped at 1.55 euro per 100 kilogrammes of milk.

FrieslandCampina has two guaranteed prices: a guaranteed price for farm milk from regular farms and a guaranteed price for farm milk from organic and biodynamic farms. In both cases, the guaranteed price is the price that the company guarantees to pay member dairy farmers for the farm milk they supply. The guaranteed price reflects the average farm milk price to be paid by a number of dairy companies in northwestern Europe, including supplementary payments, registered reservations, seasonal supplements, quantity supplements, maximum quality supplements, and cooperative supplements or charges. The amount for regular farms applies for an average supply of 925,000 kilogrammes of farm milk and for organic and biodynamic farms for an average supply of 550,000 kilogrammes on annual basis and is paid out in the milk components: protein, fat and lactose, in a fixed ratio of 6:4:0. The guaranteed price is published per 100 kilogrammes of farm milk, at 3.58% protein, 4.45% fat and 4.54% lactose, exclusive of VAT.

FrieslandCampina has two guaranteed prices: a guaranteed price for regular dairy farms and a guaranteed price for organic and biodynamic dairy farms. In both cases, the guaranteed price is the price that the company guarantees to pay member dairy farmers for the farm milk they supply. The guaranteed price corresponds to the average prices for farm milk for a number of dairy companies and countries in Northwest Europe, including supplementary payments, registered reservations, seasonal supplements, quantity supplements, maximum quality supplements, and cooperative supplements or charges. The guaranteed price is based on public sources and is determined independently of FrieslandCampina's results. The amount for regular farms applies to an average delivery of 1,000,000 kilograms of farm milk, and for organic and biodynamic farms to an average delivery of 600,000 kilograms on an annual basis, and is paid out in the milk components protein and fat in a fixed ratio of 5:4. The guaranteed price is published per 100 kilograms of milk, at 3.57% protein, 4.49% fat, excluding VAT.

Watch the video about FrieslandCampina's milk pricing system.

The milk price that FrieslandCampina pays its member dairy farmers annually consists of the guaranteed price, cash subsequent payment, the outdoor grazing premium, the special milk flows premium and the company contribution for Foqus planet.

Milk produced in accordance with the organic production methods applicable in the country where this milk is produced and which has been classified by the Board as special milk.

The amount in euros per 100 kilogrammes of milk, consisting of the milk price, the interest on member certificates, fixed member bonds and free member bonds, and the profit appropriated to the general reserve.

The price of a kilogramme of protein. This price is used to calculate the milk price (together with the fat price and the lactose price). The protein, fat and lactose content are shown in euros per 100 kilogrammes of milk and in a ratio of 5:4:0.

In addition, FrieslandCampina pays member dairy farmers a quantity bonus for milk delivered exceeding 1.5 million kilograms. This amounts to €0.50 per 100 kilogrammes. Members who deliver milk from multiple locations are grouped together for the quantity bonus.

Milk derived from cows that has been classified by the Board as special milk pursuant to Article 9.1 of the Articles of Association.

The average premium for biodynamic milk is €4.10 per 100 kilogrammes of milk, and for milk with the ‘On the way to PlanetProof’ label, €5.00 per 100 kilogrammes of milk.