FrieslandCampina pays performance price of 40 euros

FrieslandCampina pays the member dairy farmers a performance price of €2019 per 40 kilos of milk for 100. This is 3,6% more than the milk price for the year 2018. The cooperative dairy group saw its profit grow by almost 37% to €278 million.

Last year sales fell by 2,2% to €11,3 billion, which is entirely attributable to a declining milk supply of 3,4%. Sales of branded products, on which a higher margin can be achieved, increased by 3,1%. For example, the turnover of the cheese brands increased by 8,8%. In the home markets of the Netherlands, Germany and Belgium, growth and profitability were under pressure.

FrieslandCampina's performance price is made up of a guaranteed price of €35,66 per 100 kilos, a decrease of 1,1% compared to 2018. This is because the farm prices of the reference companies on which the dairy group calculated this price were lower. The compensation for special milk flows was €0,26 per 100 kilos.

Allowance
The meadow grazing allowance, divided over all milk, was €0,65 per 100 kilos. As a result, the milk price for member dairy farmers rose by 1,4% to €37,95 per 100 kilos. The surcharge for the performance price arises from the result of the FrieslandCampina group.

Hein Schumacher, CEO of FrieslandCampina, says in a statement that the dairy group has managed to improve its market positions worldwide. "We have realized more value with basic dairy and increased sales of our branded products. As a result, our operating profit improved by 7%. A result in a challenging market, geopolitical developments and the headwinds we experienced in the second half of the year as as a result of the unrest in Hong Kong."

Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

e.delijster@boerenbusiness. Nl

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