Milk lake in 2019 towards 20 percent VLOG milk

Arla Foods works with 3 areas. The first is that of home countries Sweden and Denmark. Area 2 concerns Great Britain and area 3 is Central Europe. In concrete terms, the latter area means: the Benelux and Germany. From this week onwards, member dairy farmers in these 4 countries will be encouraged to: to switch to the use of purely VLOG fodder. As of January 1, 2020, the approximately 2.900 member dairy farmers no longer have a choice; the dairy farmer only wants to be able to supply GMO-free.

The step taken by Arla is inspired by the ever-growing demand for GMO-free dairy among German consumers. Germany is by far the most important sales market for Arla in Central Europe and from a logistical perspective, focusing on 1 (GMO-free) milk flow is more convenient. Now 2 milk flows still have to be collected and processed separately.

Arla wants to make the changeover quickly. Dairy farmers who switch to VLOG feed (GMO-free feed) will therefore receive an additional €0,01 on the milk price immediately at the start of the switch. This is in addition to the 'on account price' that Arla calculates for its member dairy farmers, the advance milk price.

Save costs
Arla's step is one in a row of several dairy companies. For example, Cono will also switch completely to GMO-free dairy as of 2020. And Royal A-ware, Bel Leerdammer and FrieslandCampina, among others, announced in recent months that they would be expanding their share of GMO-free milk. The Dutch milk lake will therefore be 2019% to 15% GMO-free by the end of 20. This sum can be made based on the estimate shared by Robert Meijer of ForFarmers: "It is expected that 2019% to 15% of our compound feed for dairy cattle will consist of VLOG feed in 20."

Meijer is Manager Marketing and Communication Ruminants at ForFarmers. This compound feed company is also very active in Germany and has seen the demand for VLOG feed increase significantly in recent years. In the Netherlands, a production location in Deventer was recently completely converted into a VLOG feed factory. "By purely processing non-GMO raw materials at 1 location, we reduce complexity and can limit additional costs for our customers. Now in Deventer we still have to ensure that they are GMO-free when supplying raw materials, but we do not have to to use rinse charges in the factory (to prevent mixing with GMO raw materials). Simply because they are not present there."

Keeping costs low is therefore important for the compound feed company, because dairy factories pay 'only' €0,01 extra to their dairy farmers. "Our challenge is to supply the feed in such a way that it fits into the rations and causes a minimal cost increase," says Meijer. "Only in rations with a lot of corn, and therefore a relatively high protein correction, is this difficult and the extra surcharge for milk does not always cover costs."

'Logical step'
Meijer calls Arla Foods' step logical, because Germany is the most important market for them in Central Europe. He is therefore not surprised by it. Nor does the expansion of the VLOG program at other dairies. "The expansion is indeed happening quickly. We are therefore very happy that we have already completely converted Deventer into a VLOG location. For the time being, this is sufficient for the Dutch market. Also because we can also produce VLOG feed at the production location in Helmond. ."

Meijer says that he has been in contact with most dairies before they announced their expansion. "They then ask us how well we can meet that requirement, but ultimately we just have to comply as quickly as possible. That is logical and certainly not a bad thing. It is market demand that is leading. In Germany, consumers massively want GMO-free dairy."

Meijer continues: "Why is it barely alive in the Netherlands? I can't say much about that. In the Netherlands, there is currently more focus on sustainability and milk flows aimed at this are quickly continuing here. GMO-free does not necessarily have to be included. If that does change, we as a compound feed manufacturer must also move at a rapid pace. And if market demand requires it, that will happen."