FrieslandCampina opts for balanced growth

Zuivelcoöperatie FrieslandCampina reports that its Members' Council has approved the proposal for balanced growth. This means that milk supply must correlate with market demand. The rule will be introduced from January 1, 2019.

It was expected that the council of members would agree to the proposal. The dairy cooperative wants the growth of the total milk pool to correlate with the growth in consumption. The processor says that the market growth rate for 2019 and 2020 has been set at 1,5%.

Discount on the milk price
If the collective growth is higher than the 1,5%, then the dairy farmers who have grown too quickly will be cut on their milk price. This discount amounts to €0,10 per kilo and applies to dairy farmers who have grown faster than their room for comparison and allow latent room.

French Approvals, chairman of FrieslandCampina, indicates that the chance is small that there will actually be cuts. This is because the system of phosphate rights already makes growth a lot more difficult.

Tim Roetman

Tim Roetman has been working as a junior editor at livestock farming since November 2018 Boerenbusiness† He mainly writes about (price) developments in the pig and dairy market.

t.roetman@boerenbusiness. Nl

© 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.