FrieslandCampina makes a plus on the guaranteed price

For February, FrieslandCampina increased the guaranteed price by €0,75 per 100 kilos. The dairy cooperative also announces an increase in the milk price for March. This time the guaranteed price increases by €0,25 to €35,25 per 100 kilos. With this, FrieslandCampina appears to be responding to the positive market segment that has been around for some time. This is how the DCA dairy quotes has been on the rise for a number of weeks and the Global Dairy Trade in New Zealand also announced last week 7th auction in a row listed higher.

Yet that is not the case. The higher guaranteed price is mainly a correction to the previous period, in which the company subsequently calculated a milk price that was too low. This correction concerns €0,24 per 100 kilos. FrieslandCampina said in a statement that it expects the milk prices of the reference companies, on which the group calculates the guaranteed price, "to remain somewhat stable as a result of a balance between a moderate milk supply and an increase in global demand for dairy products."

The FrieslandCampina guaranteed price applies to 100 kg of milk with standard contents of 3,57% protein, 4,42% fat and 4,53% lactose, excl. VAT, and with an average delivery of 850.000 kg of milk per year.

FrieslandCampina sets the tone
With the increase, FrieslandCampina sets the tone for March's milk prices. In the Boerenbusiness milk price comparator the basic milk price amounts to €34,38 per 100 kilos. This is based on 4,42% fat and 3,57% protein and an annual supply of 1 million kilos. The maximum milk price, including bonuses, increases to €37,98 per 100 kilos.

The same plus on organic milk
The organic guaranteed price for March at FrieslandCampina also increases by €0,25 compared to February to €47,50 per 100 kilos. Here too, this mainly concerns a correction of €0,23 per 100 kilos for the month of January. The organic guaranteed price applies to 100 kilos of milk with standard contents of protein (3,57%), fat (4,42%) and lactose (4,53%), excl. VAT and with an average delivery of 550.000 kg of milk per year.

Changes in top management structure
FrieslandCampina has also announced that it will change the top structure of the company. The dairy group will strengthen the so-called Executive Board, consisting of the CEO and CFO, with a President Food & Beverage and a Chief People Officer. The additions should ensure fewer management layers, better decision-making and accelerated implementation of the strategy, the company reports.

Hein Schumacher, CEO FrieslandCampina: "By having the leaders of all business units and strategic functions at the table in the Executive Leadership Team, decisions can be made quickly and in a coherent manner. Placing more responsibilities on our leaders leads to a flat, agile organization, which means real speed can be achieved with the transformation of FrieslandCampina."

The new top management structure is expected to be introduced on March 1, 2021. Geraldine Fraser will then take on the position of Chief People Officer and Roel van Neerbos will become President of Food & Beverage. As previously announced, Jaska de Bakker will step down as a member of the Executive Board on March 1. De Bakker will continue to fulfill the position of CFO until May 1, 2021. Hans Jansen will then take over the role of CFO.