Interview Robert van Ballegooijen
'Premium AH milk flow may still grow'
Dairy group Royal A-Ware goes significantly expand the milk flow to Albert Heijn. From the end of this year, the so-called 'Better for Cow, Nature & Farmer' program will be expanded to include approximately 150 dairy farms that are affiliated with A-Ware or the DeltaMilk cooperative. They can supply the milk for cheese and dairy products of their own Zaanse Hoeve brand.
Robert van Ballegooijen, COO at A-ware Food Group, explains in an interview with Boerenbusiness explains how the expansion will be structured and discusses possible further growth opportunities. "The fee has already grown from 3 cents to 5 cents, but I do not rule out further growth. Sustainability is never finished."
An increase of 150 dairy farms, how exactly is that built up?
"You have the AH brand and also a second own brand from Albert Heijn, which is Zaanse Hoeve. That second brand is now also included in the program. The influx of 150 new dairy farmers is in principle a continuous process. have previously indicated that we are interested in joining the milk flow when possible. We have several milk flows and we have a waiting list for most milk flows, including the milk flow for the 'Better for Cow, Nature & Farmer' program ' from Albert Heijn. We think we can fill a large part of the need with our own dairy farmers. If there is still space left, dairy farmers from outside can also join."
What is the volume behind this in terms of liters and does this mean that you will also be recruiting extra dairy farmers before 2022?
"In principle, we do not make any statements about the exact liters. Whether we will also recruit new dairy farmers depends on how many existing dairy farmers will participate in the milk flow. However, both our company and our dairy farmers are growing. Naturally, we remain demand-driven and we We are not going to recruit more dairy farmers than necessary, but there is growth, so we expect more dairy farms to join us."
What role does DeltaMilk play exactly? Do member dairy farmers of this cooperative also supply milk to AH according to the program?
"Yes, the program concerns both white dairy and cheese. DeltaMilk fills part of the cheese assortment. They also have their own dairy farmers who participate in the program. These Deltamilk members must also meet the same requirements."
For the extra efforts, these dairy farmers receive a premium of 3 cents per liter on top of the price of meadow milk. In time, this will grow to 5 cents per liter above the price of meadow milk. How exactly is this constructed?
"The dairy farmers have to meet a number of requirements and for that they receive a premium of 3 cents per liter on top of the price. In the next step there are additional requirements and the premium then goes from 3 cents to 5 cents. compensation for the extra costs and efforts, but must of course also improve the farmer's earning model.
Do you foresee further growth opportunities in the future?
"Yes, but of course that depends on the developments in the market. We will continue to monitor the market and change assortments. The program itself is also something that is being developed and so is the compensation. We have moved from a premium of 3 cents to 5 cents, but it can grow even further in the future. Sustainability is never finished. It must always be in balance and with every step we take, the farmer's earning model is also improved."
Both Albert Heijn and A-ware are active in Belgium. Are there any plans there?
"The products from the Netherlands are also offered in the Albert Heijn stores in Belgium. There are no plans for a separate milk flow in Belgium. A-ware is still at an early stage there with dairy farmers."
A-ware also participates in chain consultations with supermarkets and LTO Netherlands. The Albert Heijn chain is a good example, what exactly do you do at the table there?
"As a company, we also have a social role. We started the program with Albert Heijn and Albert Heijn has now also implemented it in other sectors. The chain collaboration is also further developed by Albert Heijn. If we can contribute to this by sharing experiences in order to optimize chain collaboration, we are happy to do that"
"There are now many initiatives to improve sustainability and revenue models. It is powerful that Albert Heijn has a pioneering role and it is good that others are following. It ensures a healthy dynamic and it is broader than just the collaboration between A-ware and Albert Hey."
Chanti Oussoren
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