Agrifoto

Analysis Dairy

FrieslandCampina pays more for sustainable milk

June 17, 2024 - Klaas van der Horst

FrieslandCampina has been paying a significantly higher portion of the milk money for sustainability efforts since the beginning of 2023. The cause is the introduction of the renewed Foqus Planet system. Last year, 21 cents per 100 kilos more were spent retrospectively than estimated in the annual report.

This week, the company announced that an average of €2.63 per 100 kilos of milk was spent on sustainability premiums last year. In February, during the presentation of the annual report, this amount was estimated at €2.42 per 100 kilos. It is difficult to calculate exactly how much more the €2.63 is compared to what was spent in 2022 for sustainability efforts, but it seems to be around 40 cents more.

The comparison is complicated by a system change. Until 2022, there was a separate grazing premium of €1.50 per 100 kilos, of which members directly funded 35 cents themselves. In addition, there were Foqus Planet and PlanetProof. As of 2023, grazing has been incorporated into Foqus Planet and the maximum premium for grazing was reduced to €1.30 per 100 kilos. Instead, more emphasis was placed on CO2 reduction. The more points earned for that, the higher the premium. The Foqus Planet premium can go up to €3.50 per 100 kilos.

The sustainability premiums at FrieslandCampina can be divided into rewards for the Foqus Planet system and rewards for special milk streams, such as PlanetProof (up to €5), Vlog, and organic. The average reward for special milk streams increased last year from 33 to 61 cents per 100 kilos of milk. Part of the premiums (60 cents per 100 kilos) is directly funded by all members of the cooperative together, while another part is paid by the company.

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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