News milk
FrieslandCampina is working on attracting new members
FrieslandCampina is working on a 'feel-good' package for existing and future members. This package contains various financial inducements, including discounts, surcharges and release of capital. It's all to maintain the milk supply.
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The proposals have now been shared with members. FrieslandCampina states that it is about 'viewing directions'. Members are expected to make a decision on this during the course of this year. The aim of the entire operation is for FrieslandCampina to maintain milk volume in a situation with a shrinking milk supply. The viewing directions are expressed in a video, which members can view at home.
Deferred payment
The proposals include an interest-free loan or deferred payment for the purchase of delivery certificates, reintroduction of a quantity surcharge, for example for volumes above 1,5 million kilos, three-year exemption from entrance premium for new members and the option for existing members to member bonds can be converted into free bonds via trading on the internal exchange. To achieve this, the credit facility at Rabobank must be increased from €50 to €100 million. If there are no buyers available for the new bonds, FrieslandCampina will ultimately have to take them over itself.
FrieslandCampina can search for new members in the Netherlands itself, in Flanders and in part of Germany along the border with the Netherlands.