RFC Members Council agrees to scrap supplementary payment

At the beginning of March, dairy cooperative FrieslandCampina announced its annual results for 2020. Due to the poor performance, the dairy is unable to pay out supplementary payments to member dairy farmers. It turned out that it saves an average dairy farm between €10.000 and €20.000 in income. However, the Council of Members still had to consider the reports. That has now happened. The Members' Council has approved and agrees to the cancellation of the supplementary payment.

The Members' Council of dairy cooperative FrieslandCampina has approved the annual accounts for the year 2020. According to spokesman Jan-Willem ter Avest, there was no immediate heated discussion during the meeting. "Those discussions had already taken place in the run-up to this meeting (with the Members' Council), including in the regional meetings. So now a majority approved the annual accounts and everything that goes with it." By this he means the cancellation of the supplementary payment.

big loss
The profit of the cooperative dairy group was no less than 71,6% lower over the past year, at €79 million. After taxes, a loss (negative total result) of €50 million remains, according to the annual report that the dairy beginning of March presented. Turnover fell by 1,4% last year to €11,1 billion. Due to this significantly lower profit, the member dairy farmers do not receive a cash supplementary payment and no member bonds can be issued. "A hard message," said CEO Hein Schumacher at the presentation.

By canceling the supplementary payment, the small 17.000 member dairy farms will miss out on approximately €2019 million in revenue compared to the supplementary payment in 138. "Although it is a relatively small amount compared to the €3,6 billion in milk money that went to the members over 2020, I realize the impact," chairman Frans Keurentjes reported. the presentation of the annual figures† "For a dairy farm that supplies 1 million liters annually, this saves between €10.000 and €20.000. This while the sector is already under pressure."

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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