FrieslandCampina sees 628 members leave

At FrieslandCampina, the number of member dairy farmers fell by 628 members in the past year. This is evident from the annual figures presented by the dairy group today (February 27). Cooperative chairman Frans Keurentjes indicated that he wanted to strengthen cooperation with the members, in which openness and transparency are given priority.

Compared to 2018, the outflow shows a slight increase. At that time, 603 member dairy farmers left the cooperative. The declining trend in the number of members has been going on for a number of years. The outflow is reflected in the milk supply to the cooperative. Last year it shrank by 3,4% to 10.02 billion kilos. According to CFO Jaska de Bakker, about 20% of this is still loss-making. 

Of the 628 members who have dropped out, around 400 dairy farmers have decided to sell the milk to other buyers, Keurentjes indicated. "We always regret that members are leaving," said Hein Schumacher, CEO of FrieslandCampina. "For those who switch to another customer, that is an individual choice." The fact that a fifth of the milk supply is still loss-making is no reason for Hein Schumacher to applaud the outflow of members. "We benefit from robust dairy farming."

Different financing structure
The dwindling number of member dairy farmers means that FrieslandCampina is working on a different financing structure. In recent years, due to the aging of member dairy farmers and switchers, more member bonds have been offered than sold.

More than half of the freely tradable member bonds are now in the hands of former members. At the beginning of this year, the cooperative announced that bonds will be issued, opening the door for investors.

Eventful year for farmers
Last year, within FrieslandCampina, there was a vigorous discussion among the members about the company's course and strategy and the conditions that member dairy farmers must meet, for example in the area of ​​sustainability and the environment. Added to this was the current nitrogen discussion, which, for example, led to a short-lived blockade of FrieslandCampina's head office in Amersfoort last autumn.

It was an eventful year for the farmers, Keurentjes notes. "Many changes are coming at them, such as the disappearance of market protection, increasing competition and requirements in the field of sustainability and the environment. This leads to many uncertainties and discussion in the sector. We as a cooperative are also held accountable for this."

Solidarity among members
Keurentjes emphasizes that the cooperative wants to focus on unity and solidarity with its members. "As a company, FrieslandCampina has already taken steps to respond to the changes, but this is not always understood and recognized at the cooperative. That is why we want to strive for transparency and openness within our cooperative more than in the past and to strengthen the cooperation as much as possible."

Because the cooperative is an extension of the farm, emphasizes Keurentjes. "I am convinced of the ingredients we have. We have the best farmers, the best instruments, knowledge and experience, strong brands and the most natural product: milk. And milk is gold, with all the possibilities that this product has. "

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