With the 12,5-year anniversary just behind us, DeltaMilk is still the youngest dairy cooperative in the Netherlands. A cooperative that took over Campina's cheese factory in Bleskensgraaf in 2009 and has been paying an above-average milk price to its members ever since, although it does not show off too much. As of January 1, 2023, approximately twenty new members will be added. As a result, the number of members has expanded from over seventy to about two hundred since the start.
It was in 2009 Delta Milk a cooperative of farmers from the west and center of the country, who took a big step with the takeover of the cheese factory. Which, at first glance an almost too big step, succeeded. Chairman Henk van der Wind was asked how he would characterize DeltaMilk now. "We have more members, but we are still a cooperative of enterprising dairy farmers, farmers who are not afraid and want to do business in a future-oriented way." General manager Raymond Noordermeer adds: "We are a professional cheese producer who mainly produces for third parties, which can handle multiple milk flows and forty to fifty different recipes."
More cooperatives and cheese makers could say something like that about themselves, but what else sets you apart from others?
Van der Wind: "As you know, we can have quite heated discussions in DeltaMilk. Anything can be said at our meetings, but if we decide something, it often turns around after a few months. So agility, and very close to the members is something that sets us apart." Noordermeer chuckles: "There have been new members who have been surprised at what could be said in the meeting and asked themselves: Will this turn out well tonight? But then it will turn out well, precisely because everything is on the table. "
Henk van der Wind
Van der Wind: "For example, we had quite a discussion about the different milk flows and the differences in compensation that go with them. Finally, we concluded that it is a good idea to go along with this. If we do nothing with this, we will ultimately have nothing left. However, it is true that each of these various milk flows must yield a return. Finally, when we make a decision about something, we do not do so with a majority of 50 + 1, not even with 75% support. We want everyone to be on board. "
In some cooperatives, and also among private processors, discussion or dissatisfaction sometimes leads to dairy farmers leaving. What about you?
"We have had closures, because you have to deal with company closures everywhere, but in the last five or six years we have not had to deal with members switching to another processor, except perhaps a single farmer who switched to organic. "
In the past, you have often accepted new members on a piecemeal basis. Now you will suddenly get around twenty members by 2023. Does this have to do with the fact that you still purchase a large volume of milk from FrieslandCampina, but that the milk supply there is also decreasing?
"We see that the availability of milk is becoming increasingly important and we are acting accordingly."
Suppose that external milk flow, which you have had access to since the start, suddenly disappears for some reason, wouldn't you be very vulnerable?
Noordermeer: 'We follow developments closely and act accordingly. We can't say more now, but as mentioned, we will be adding more members. Furthermore, we don't walk around like a scaredy cat, despite clouds. And there are more things we have to deal with. Look at everything that is happening around nitrogen and the further social discussion."
As a relatively small player, you may also have an easier time than as a big giant when it comes to adapting to new circumstances, thanks to agility and short lines.
Noordermeer, laughing: "Agree, but I didn't really want to say that."
When you accept new members, do additional conditions apply? And does such a newcomer have to pay a lot of deposit?
Van der Wind: "Companies of new entrants are above average compared to the current membership base. We have not stated that we are only looking for pasture companies, but the group of newcomers as of January 1 consists of all pasture companies. We also like to have new members from the area around the Groene Hart. That is the area we identify with most."
Henk van der Wind
"We are also not interested in pre-stoppers and fortune seekers. We are looking for enterprising new members. We do not disclose the required deposit, but the deposit has never been a barrier to entry."
You do not seem to be the cooperative that aims for an equity of 50% or more...
Noordermeer: "No, but that is not a problem. We do have a guaranteed capital of about 40%."
You mainly produce cheese for private label, not under brand. Why this choice?
"Building a brand takes decades. It is also expensive to maintain. That is not our goal. However, space does occasionally arise for regional brands, at cheese specialty stores and voluntary branches. But that does not mean that we do not want to put down.”
How do you position yourself?
"When I came here six years ago, about the same time as Henk, they said in the company that they made very good cheese. I said: 'Fine, but who says that?' From that moment on, we started submitting cheeses to international competitions. At the first competition, in the United Kingdom, we came back with five gold medals. That really encouraged our people."
Raymond Noordermeer
"It does something to self-confidence, although we may express that a little less strongly in South Holland than above the North Sea Canal. We have now won gold here for the fifth year in a row. And our trophy cabinet has now also grown from other competitions and inspections. well filled. To the outside world, these prices are a calling card for us. Even when we enter export markets with our cheeses."
"As a private-label player, we are often also the challenger, with all kinds of innovations. For example, we were the first with E-number free cheese, with Gouda 35+ cheese that has the taste of a 48+ and so on. We are not the largest, but very agile and often look for coalitions. In South Holland we do this, among other things, with the Green Circles project. This seeks sustainable solutions to continue farming in balance with nature. Combating soil subsidence is an important part of this, and with success. We are also the main sponsor of the Kinderdijk world heritage project and in the village we are looking for a connection with, among other things, a completely renovated cheese farm right next to the factory. We use the spaces there ourselves for meetings, training and partly as office space, but we also have a cheese shop there and make spaces available. Not for parties, but for association work."
If I may return for a moment to the social discussion about nitrogen, livestock farming and the like. How do you experience doing business in the current climate?
Van der Wind: "As a farmer you are used to doing business with your environment; the elements, but also the society close around you. We also have good and constructive conversations with municipalities and provinces, water boards. But what we have done in recent years When you encounter opposition from The Hague, your courage often sinks. Demanding that we have to transition: agriculture is always in transition." Noordermeer: "I probably shouldn't say it, but it still drives you crazy: food availability and affordability is an international matter and should at least be considered European. And we have politicians who think that the food supply ends at Venlo."
Raymond Noordermeer
"Politicians who focus heavily on reducing the food and agri sector in the Netherlands forget that an important part of our food and drinks comes directly or indirectly from abroad: they are not going to stop consuming coffee, tea, pasta, citrus fruits and for example wine? We are the world leader when it comes to sustainable dairy farming; you must also have something to exchange, right?"