Little control
Is FrieslandCampina still a cooperative?
'How many dairy farmers still have to stop?' This is only one of the reactions to the plans, which FrieslandCampina revealed on Monday 1 April. In the meantime, it has become clear that there are still opportunities for dairy farmers who are covered by the bottleneck scheme. This does not take away all concerns because; how will the bank and retail respond?
FrieslandCampina presented plans to regain control of the milk supply by means of a growth agreement. Labeled as factory quota by dairy farmers. This means that if the size of the total milk production by the members of FrieslandCampina exceeds the market demand, action is taken. This intervention consists of a discount of 10 cents per litre, which is supplied in excess of the company quota. A quota is set per company.
big surprise
"It came like a rabbit out of a top hat" and: "This was not expected". Ronald Beulink, dairy farmer from Zelhem and Alexander Vugts, dairy farmer in Haaren, about the plans of the largest dairy cooperative in the Netherlands. Beulink was at the members' meeting on Tuesday, where Vugts still has to wait for the meeting that is on the agenda next week.
What is striking is that the members' say in the plans is minimal. Vugts: "You don't have the feeling that this is a cooperative." Beulink adds: "A member has the right of initiative, but only on the subjects listed in the annexes." This is not the case with current plans.
Nevertheless, the meetings are a time to make your voice heard. "I expressed my opinion extensively at the meeting, but this does not have to be the opinion of the majority," says Beulink. "However, the vote that followed indicated that the majority supported my feeling. There was no one for that. About half were against and the other half had no opinion."
All owner
"We all own the cooperative," says Beulink. "If the proposals are voted on, companies will immediately collapse. I cannot be satisfied with such measures, from a party that stands up for the companies. I am not the person who votes for a measure, which, so to speak 90% can get by and a few splinters fall off."
In the meantime, there is hope for the dairy farmers, as it turned out during the meeting in Maarheeze. The board in Maarheeze said that the extra allocated phosphate rights for the pressure cases will be included be via option 5† Jan-Willem ter Avest, spokesperson for FrieslandCampina, indicated that when the politicians point out problems, they do not rule out the possibility that they can be converted into milk.
For Vugts it depends on whether he stays with the cooperative. "I don't want to leave. The cooperative is doing its best and is able to achieve an above-average milk price." He also wonders whether the current measures are necessary, because there are already many quitters and more are to come. Beulink agrees: "Because, where should all members go then?"
Fear of banking and retail
Another fear, expressed by both dairy farmers, is that the discount of 10 euro cents per kilo of milk will cause a chain reaction. "Retail also sees that milk will be purchased with a discount of 30% on the raw material price. I doubt very much whether this concept will have a good effect on the milk price," says Vugts. The question is also how the bank will deal with this when applying for financing.
It creates a lot of uncertainty again. The new Topline has not yet been a resounding success among livestock farmers. "There is nothing there yet, but they do want to set up a special milk flow for it," says Beulink.
The livestock farmers make it clear that the communication of the new plans and the content together generate a lot of resistance. Beulink therefore asks the question: "How many farmers still have to stop to secure our own future?"
Herman van den Pol
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