17 Apr 2018 --- FrieslandCampina has pledged to strengthen its sustainability strategy by introducing a certified Top Dairy line focusing on animal welfare and biodiversity. The Dutch multinational dairy cooperative is proposing to its members a desire to debut a top dairy line with an extra focus on animals, nature, climate; dairy with a lower CO2 equivalent, as part of its “Nourishing by nature” strategy. And, expectations are that the first dairy products of the top line will be on supermarket shelves in early 2019.
The cooperative says the line is aligned to its meadow grazing standard and the new standard for the intrinsic link between farmers and the available land for their operations.
In general member dairy farmers will still have room to grow their milk supply. However, this increase is possible within the boundaries of a growth arrangement, based on expected market demand. Growth over and above will lead to a reduced milk price for those farmers responsible for this extra supply.
Member dairy farmers that commit to sustainable and special milk supply will receive higher payments in line with market value creation for such milk and FrieslandCampina will also invest to expand its existing sustainable and special milk flows.
Hein Schumacher, CEO of Royal FrieslandCampina N.V., says that by accelerating sustainability efforts, the cooperative is setting higher standards for dairy in general.
“The introduction of our sustainable top dairy line is a great example of this. With this, we strengthen our purpose nourishing by nature. Increasingly better nutrition for our consumers and a good living for our dairy farmers. This is what it’s all about, now and in the future,” he said.
Growth of the milk supply volume is possible within the scope of a pre-agreed growth arrangement. The arrangement aims to set an expected dairy market growth percentage. Production of more milk than this percentage will result in a deduction to the milk payment of €0.10 per kilo.
This deduction brings the milk price for incremental volumes of milk in line with market prices for basic dairy products. The FrieslandCampina guaranteed price will remain the basis of the FrieslandCampina milk price.
“Sustainable milk will pay-off, we are convinced of that. Being one of the leading dairy cooperatives in the world we ask our members to show a strong commitment to meeting the demand for more sustainable and special milk flows,” adds Frans Keurentjes, Chairman of Zuivelcoöperatie FrieslandCampina U.A.
“In addition to the higher payment for sustainability, we are aiming at well-balanced and market-driven growth. This will help us create a cooperative in which a next generation of farmers is guaranteed a future.”
FrieslandCampina will discuss the proposals with its member dairy farmers over the course of the next few months and a decision is expected later this year and come into effect on 1 January 2019.
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