FrieslandCampina continues to roll out runners for farmers

According to an announcement, this concerns an integrated package of arrangements. This package includes both renewed and new measures, such as the adjustment of the business takeover scheme, the extension of the milk volume scheme, the introduction of a quantity surcharge, a temporary exemption from the entrance premium for new members and an improvement in the liquidity position of member dairy farmers through the conversion from member bonds-fixed to member bonds-free as of June 21, 2024.
This last adjustment makes the member bonds tradable and therefore convertible into cash.

In most cases, this can be a solution for older business owners. Other adjustments are more useful for business successors. One of these is the extension of the deferred payment arrangement for the purchase of milk certificates. Anyone who still has a debt to repay to the factory after 2029 will have to repay a maximum of 1 cent per kilo after that year. Anyone who takes over a company can now rely on a 100% interest-free and deferred payment arrangement for the purchase of milk certificates. Repayments must be made linearly over 10 years, with the first 2 years being interest-only. For companies that grow through the financing of milk certificates, the existing scheme will be extended by 3 years until 2027. All member companies that grow more than 10% on an annual basis will automatically receive an interest-bearing loan for the purchase of milk certificates.

Quantum control
To better retain and attract larger companies, a quantity scheme will be introduced. Anyone who supplies more than 1,5 million kilos of milk will receive a 50 cent surcharge per 100 kilos. This surcharge is not financed through a generic deduction, but financed by the company. 

There is an encore for new entrants and suppliers. No one will have to pay an entrance fee for the next three years. It now amounts to €5,00 per 100 kilos of milk for prospective members and €3,00 per 100 kilos of milk for new suppliers. The scheme will also take effect retroactively on June 9, 2022. After three years, the premium will return to €3,00.

Larger working area
In addition, it has been decided to expand the cooperative working area in Belgium to include the entirety of West and East Flanders. The recruitment of new members will also start there. The sustainability strategy was confirmed.

Groningen dairy farmer, LTO director and CRV chairman Wietse Duursma was appointed during the meeting as a board member of the cooperative and as a member of the supervisory board of FrieslandCampina.