Empty run at FrieslandCampina stopped?

In the past 12 months, 11 FrieslandCampina member dairy farmers have switched to another dairy processor. This is evident from figures from the Dutch Milk Foundation (DMF). Last year, 230 dairy farmers relocated, a record number in DMF's 11-year existence. 

DMF received a total of 12 applications in the past 12 months, 1 of which was rejected. The so-called severance package arises from the merger between Friesland Foods and Campina in 2008. The European Commission approved the deal at the time, on the condition that 1,2 billion kilos of raw milk became available to third parties. The departing dairy farmers are entitled to a departure premium of €5 per 100 kilos of milk.

In the past 11 years, DMF received a total of 419 applications, of which 398 were granted. Of the 1,2 billion kilos of raw milk, 38% has now been given to other processors. This means that the scheme will remain in the air for the time being.

Unrest hasn't stopped yet 
The low outflow in the past year is striking, because the unrest within FrieslandCampina reared its head last autumn. A group of FrieslandCampina member dairy farmers then united in the collective 'Delivered Friesland Campina Farmers'.

They demanded that the collaboration with Natuurmonumenten be terminated, but the management of the dairy group did not agree. The disaffected members apparently choose to try to make changes internally, rather than seek their happiness elsewhere.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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