FrieslandCampina: 'First new members are already delivering'

In the course up to 2030, two topics are high on the agenda. Maintaining the current size is one of them. Since this summer, FrieslandCampina has opened its doors to new members for the first time since the merger in 2008. "The goal is to maintain the current size," says cooperative director Nils den Besten in the press briefing.

FrieslandCampina processes between 9 and 10 billion kilos of milk annually and claims to be able to valorize this well. After the abolition of the quota in 2015, the volume grew to over 11 billion kilos, which led to a number of problems. It is estimated that in the past as much as a quarter of the supply had to be processed into loss-making bulk dairy. Those times are over. Of course, you can assume that this was helped by the current sucking power in the dairy market.

Member Adoption Policy 
Due to high outflow figures, FrieslandCampina has slimmed down considerably in recent years. For example, 2021 dairy farmers left between July 2022 and July 284. Never before has the outflow been so high. The cooperative wants to prevent further shrinkage at all costs. That is why the membership recruitment policy was changed more quickly in the first half of this year and the gate was opened again. After all, the competition is not standing still and sees the same danger due to the sanitizing nitrogen policy. The north of Belgium and the west of Germany are added as a recruitment area, although there are also a number of privateers on the coast. "We have to work really hard to maintain the volume," acknowledges director of cooperative affairs Jan Pieter Tanis. He does not want to say much about the recruitment policy, other than that he says the campaign is going 'very well'. "The first new members are already supplying milk." He leaves it unclear how many there are. Judging from his words, this concerns a handful of dairy farmers. Moreover, a positive membership balance still seems far away, based on the high outflow in recent years.

In addition to maintaining its size, FrieslandCampina wants to accelerate sustainability, as stated in the course up to 2030. The reward system will be overhauled from 2023, as was recently proposed to the members. In short, it must become simpler and more attractive. We wrote earlier that the allowances in Foqus Planet will become more concrete and higher. The PlanetProof bonus will also be increased, just as the guaranteed price will also be adjusted.  

CO2 milk
The money for the sustainability bonuses is generated via two channels. Through the cooperative contribution, €0,60 per 100 kilos of milk is deducted from members. "The rest must come from the market, including for valuing CO2 reduction. We have given the dairy group this as an assignment from the board," says Den Besten. He acknowledges that it is a challenge now that consumers are increasingly purchasing private label dairy due to high inflation, with sustainability often not being a top priority. "At the same time, we want to maintain the course we have set, although we should not close our eyes to what is happening in the world." According to Den Besten, adding value to CO2 reduction is not a one-hit wonder, but a trend. "By visualizing the scores on the farm, we now really have something to offer our customers."

FrieslandCampina will discuss the proposals with the members in the coming weeks, after which the Members' Council will have to give a final decision on the proposals in December.