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FrieslandCampina brings together climate leaders

May 10, 2024 - Klaas van der Horst

FrieslandCampina is bringing together a group of members of the cooperative who are willing to take the lead in climate measures. This is for customers who are willing to pay extra for products with a low carbon footprint and further innovative measures to reduce emissions.

This is confirmed by FrieslandCampina. Many member-dairy farmers have already been recruited internally, but more members can still sign up until May 15. Their milk is supplied to food giant Mars, which is rolling out a global climate program where Fonterra, Land O'Lakes, DMK, Interfood, and the Polish Mlekovita are also participating. Other companies are also interested in FrieslandCampina's extra climate-friendly milk.

No special milk stream
In the initial phase of the FrieslandCampina program, the focus is on measures to reduce greenhouse gas emissions. In the future, biodiversity measures may also be added. Internally, FrieslandCampina refers to the project as 'the Development Group'. Milk valorization is based on mass balance. There is no special milk stream. However, contracts with customers can be concluded in the background, such as with Mars.

These companies also have a reporting obligation, just like FrieslandCampina. To fulfill this, agreements must be made on emission reduction. Customers of FrieslandCampina do not know who is in their supplier group, and members also do not know which customer they are linked to. However, a 'data match' takes place.

Security until 2030
Participating member dairy farmers sign an agreement for two years of participation: 2024 and 2025. After that, the contract will be automatically renewed each year until the end of 2030. This is important for customers, as they then have the assurance that they can claim emission reduction for a long time.

In 2024, participants will receive a fixed starting amount of €250 and will also receive €25 per kilogram of Bovaer used. The €25 compensation is to cover the costs of Bovaer and to appreciate member dairy farmers for their participation, costs, and efforts. The amount of the fixed contribution and the variable contribution per measure will be reassessed each calendar year based on the current situation.

FrieslandCampina does not disclose how large the 'development group' should be or what the potential additional compensation is.

Klaas van der Horst

Klaas van der Horst is a senior market specialist in dairy at DCA Market Intelligence. He also closely monitors developments in politics and agricultural policy.
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