News PlanetProof
PlanetProof milk supply exceeds demand
The more than 700 dairy farms that deliver the label 'On the way to PlanetProof' of the FrieslandCampina cooperative produced more PlanetProof milk than expected last year. "It ensures that the total production on the farms has grown faster than the market demand," reports the dairy cooperative. That is why it had to decide to terminate the contract with dozens of dairy farmers.
FrieslandCampina informed several dozen PlanetProof dairy farmers on Wednesday 10 February that their agreement for the milk flow will be terminated. This is because the milk supply to the more than 700 PlanetProof companies has grown faster than the demand from the market. "Although the demand for PlanetProof milk is still increasing, milk production is increasing faster. This is at the expense of the profitability of the milk flow," says spokesman Jan-Willem ter Avest. "It is a demand-driven milk flow, which means that if demand is slightly rising (in combination with a sharply growing supply), we will have to continue with fewer dairy farms. We simply have a little too much milk."
It only concerns dozens of companies in Twente. "The choice for this was made on the basis of various logistical considerations", FrieslandCampina explains in the message to the relevant dairy farmers. A notice period of one month has been agreed with the dairy farmers. This means that the PlanetProof surcharge of €0,02 per kilo of milk for these dairy farms will expire on 12 March.
Selling in the market
The dairy cooperative previously announced that it would sell milk with the 'On the way to PlanetProof' label to various other dairies. Back then According to the spokesperson, this had nothing to do with a surplus of milk from the milk flow. "The market has shown interest in purchasing this milk and we are now going to offer that option. For us, this step mainly contributes to the further expansion of the quality mark."
The goal was mid-September – when FrieslandCampina came up with this plan – to scale up the number of PlanetProof dairy farmers by supposedly putting the milk on sale and offering it to third parties. Whether that was the right choice is now arguable. "I don't think it was a bad choice. It's the most successful milk stream we've introduced. And €2018 million has been raised since its introduction in 28. The PlanetProof milk supply is just more than we can handle right now put away", Ter Avest concludes.
Curious about how 'Boerproof' the 'On the way to PlanetProof' quality mark actually is? Boerenbusiness and Foodlog will hold a webinar with experts about the quality mark on 11 February from 19:30 to 21:00. write to you here to access the live video call.
Kimberly Baker
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