FrieslandCampina focuses on organic baby milk powder

FrieslandCampina has developed an organic baby milk powder under the name: 'Organic Friso Prestige Bio'. It is the first time that the dairy cooperative has come up with an organic product in this segment. Hong Kong has been chosen as the first sales market with the aim of launching the milk powder in other countries as well. There is not necessarily more room for additional organic dairy farmers. 

Organic milk powder is a fast growing market, in 2019 the value increased by 30% to €2 billion. Moreover, the growth is expected to continue in the coming years. It is no coincidence that FrieslandCampina is first rolling out the milk powder in Hong Kong. The Dutch market research agency Nielsen has investigated for them that consumers in China and Hong Kong are very selective when purchasing baby milk powder. 

Organic is becoming increasingly popular. "We are really responding to a trend," said spokesman Jan Willem ter Avest. FrieslandCampina does not want to make any statements about potential sales volumes of organic baby milk powder from a competitive point of view. On the other hand, the choice of Hong Kong as a test case is remarkable, given FrieslandCampina there in recent months had problems† The independence protests there, among other things, affected sales there last year. 

TrackEasy
In the past, the trust of parents in China and Hong Kong was shamed when it turned out that there were toxic substances in Chinese baby milk powder, so overseas product has been immensely popular for years. FrieslandCampina launched a year ago to respond to this TrackEasy, where consumers can trace the production process from A to Z by means of a QR code. The production process of the new organic baby milk powder is also made transparent in this way. 

Allow room for changeover switches with growth
FrieslandCampina has approximately 150 organic member dairy farmers. Recently, this number has hardly grown due to limited market demand. At the presentation of the annual figures for 2019, cooperative chairman Frans Keurentjes said that inverters will be allowed if the market allows for this.

FrieslandCampina has already indicated several times that it wants to scale up in organic dairy, not least in Asia. The new baby milk powder gives substance to that ambition. According to the spokesperson, this launch is not yet a reason for additional switches. "We are still well ahead in terms of organic production."

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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