As from 1 October 2016, Dutch dairy cooperative FrieslandCampina will pay its member dairy farmers €0.10 per kilo of milk not produced for a period of 6 months. This measure comes on top of the recently announced European incentive for reducing the milk production.
With this measure FrieslandCampina intends to accelerate the reduction of phosphate production at the member dairy farms in anticipation of the announced Dutch phosphate production rights. Apart from this, the intended reduction will improve the opportunities for milk valorisation.
The Dutch dairy cooperative is aiming for a total reduction of 150 million kilo of milk in the period from 1 October 2016 up to 31 March 2017 inclusive. In this way FrieslandCampina makes a contribution to an accelerated reduction of the phosphate production and so supports sustainable dairy farming. Additionally, this also strengthens the company’s market position.
The company makes available a total amount of €15 million for member dairy farmers who produce less milk, which comes down to €0.10 for each kilo of milk not supplied. This amount will be paid on top of the milk reduction premium of €0.14 paid by the European Union for each kilo of milk not produced. In total, the EU has a budget of €150 million, which account to a maximum milk reduction of 1.1 billion kilo.
All members of FrieslandCampina can participate, with the exception of organic and biodynamic dairy farmers and on-farm producers of dairy products with exemption. Participation will take place on a voluntary basis. The arrangement will be valid for a period of 1 October 2016 up to 31 March 2017 inclusive.