Approvals reassures
'Chance of milk stop decreases rather than increases'
"There is still a chance of a milk stop until June 30, 2018, but that chance is decreasing rather than increasing," said Frans Keurentjes, chairman of the FrieslandCampina cooperative, during the press conference of the cooperative's annual figures.
FrieslandCampina has not yet put an end to the arrangement that makes a boycott possible on the extra liters of milk, but Keurentjes does offer some reassurance. "In the period from January 1 to June 30, we have the option of introducing a milk stop. At the moment, however, that chance is decreasing rather than increasing," says Keurentjes.
Gerkesklooster operational again
Another positive note is that the factory in Gerkesklooster will also be operational again from March. It means that processing capacity is added again. However, this does not mean that there will be less milk (for example due to the phosphate rights system). "Dairy farmers look for the balance between dairy cow and young stock on the farm. They look for optimization at farm level," says Keurentjes.
It remains a challenge to find a good balance between supply and sales. For example, in the fourth quarter FrieslandCampina again experienced a mismatch between the prices of the dairy products and the milk price. "This did not suddenly disappear in January and February," says Hein Schumacher, CEO of FrieslandCampina.
Milk price could be better
"We need good tools to get the right starting point for the sector," says Schumacher. This also applies to the milk price. "This can be just a little better than what we see now." A good milk price is also necessary to achieve the sustainability goals. "Sustainability is crucial. We don't use a defensive policy here." Schumacher mentions the topics CO2, grazing and sustainability. Although the results in the area of CO2 are still disappointing, this is a subject that the processor wants to focus more on.
The processor is committed to sustainability, which is good for its image, but at the same time there is fraud with the Identification and Registration System in the Netherlands. "I don't see any damage in export yet," says Schumacher. According to him, it does not alter the fact that all negative publicity is harmful. "For now, however, it is a matter between the government and dairy farmers."
Herman van den Pol
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
