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FrieslandCampina: green light for merger and dividend
The members of the FrieslandCampina and Milcobel cooperatives have overwhelmingly approved the proposed merger. This makes it a reality. The integration of the companies will take longer, but according to CEO Jan Derck van Karnebeek, it should be largely completed by the end of 2026. Good news for the existing FrieslandCampina members is that they can expect a supplementary payment for this year.
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At the same time as the merger, a new milk price regulation was also voted on. The protein/fat ratio will be adjusted from 6:4 to 5:4. This will increase the value of the milk fat percentage slightly. The maximum Foqus-Planet premium will also be increased by 50 cents to €4. This will also increase the incentive for biodiversity. Another change is the elimination of the interim supplementary payment. From now on, there will only be a standard supplementary payment. Milcobel will be removed from the guaranteed price basket, which is logical, but nothing will replace it.
Additional payment 2025
Despite a difficult second half, a cash payment will be made for the current year 2025. The amount has not yet been disclosed.
Former Milcobel members can choose how they want to integrate into the FrieslandCampina system: either they join fully immediately, and can then also receive Foqus Planet compensation straight away, or they opt for a two-year transition period, but without Foqus Planet compensation.
Reorganization news is still lacking
The merger will also entail a reorganization, but Van Karnebeek declined to comment on that. "To give employees a peaceful Christmas." However, more clarity will be available before April 1, 2026. A detailed plan is already in place.
Besides reorganization costs, the merger also brings synergy effects, according to the CEO, particularly in the area of whey (although most of Milcobel's whey currently goes to Arla, so new agreements must be made), mozzarella, and milk powder.
Place for Eeckhaut and Grugeon
Chairman Betty Eeckhaut and CEO Peter Grugeon will be incorporated into FrieslandCampina's board and management. Eeckhout will become a cooperative director and a member of the FrieslandCampina Supervisory Board. Grugeon will become president of the Professional business group, which also includes the majority of Milcobel.
Cooperative chairman Sybren Attema expects that many more members will join in Belgium and northern France after the merger. He says an ongoing recruitment campaign has been "very successful" so far.