Inside Milk
FrieslandCampina loses members and a ditch of milk
Up to and including October 1, 239 dairy farms have canceled their membership of the FrieslandCampina cooperative. Hein Schumacher, CEO of the dairy group, reported this on Tuesday (October 5) in a webcast with member dairy farmers. The departure of the members and understaffing at various factories will depress FrieslandCampina's financial results for the current financial year.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
The departing dairy farmers will take with them 272 million kilos of milk as of January 1, 2022. In addition to the milk, they also withdraw money from the company. It is unclear what amount this concerns. In addition to their member bonds, the departures often also take €5,00 per 100 kilos of money with them, due to the still applicable severance scheme from the merger of Friesland Foods and Campina in 2008. The correct procedure must be followed for this.
Lots to choose from
In recent weeks it became clear that a significant number of members wanted to leave, while other companies opened their doors. So there was a choice. DOC Kaas has hired several dozen departures, Vreugdenhil is looking for an additional 100 to 150 million kilos of milk, while A-ware, Farmel and Arla are also attracting extra milk. The latest party is reportedly looking for around 30 million kilos of extra milk for the fresh market in the Netherlands. There is therefore a chance that even more milk will leave FrieslandCampina in the coming months.
The dairy giant has actually only seen members leave in recent years. The door for newcomers was and remains closed. According to the official regulations, anyone who wanted to join had to pay a high entry fee, to which the costs of delivery certificates will also be added as of January. Director Hans Hettinga indicated in the webcast that the board wants to examine these conditions.
Bright spots and concerns
Schumacher also tried to point out bright spots in the webcast, such as good sales in the Netherlands, Pakistan, Indonesia and parts of Africa, but many concerns remain. Schumacher also specifically mentioned that further adjustments are needed in the production apparatus and that depreciations on factories weigh heavily on the finances. Sources in the dairy sector report that the factories in Borculo and Beilen are running understaffed and other locations are also being viewed with a critical eye. FrieslandCampina says it does not respond to 'speculations' about this.