FrieslandCampina Reports Decline in Milk Supply Amid Structural Adjustments
Source: The DairyNews
In the first half of 2024, FrieslandCampina experienced a 3.2% decrease in milk supply, processing approximately 4.7 billion kilograms of member milk.
This reduction is primarily attributed to the completion of the Exit Scheme, a requirement by the European Commission following the merger between Friesland Foods and Campina, which concluded on November 9, 2023.
Despite the dip in milk volume, the dairy giant reported a slight increase in the guaranteed price for milk to €46.53 per 100 kilograms, though this is still 6.9% lower than the previous year. The decrease in milk price was partly mitigated by higher sustainability premiums, with the Foqus planet bonus for sustainable development rising to €1.63 per 100 kilograms of milk from €1.13 in the same period last year. Consequently, the average milk price for the first half of 2024 was €50.09 per 100 kilograms, marking a 3.1% decrease from €51.70 in the first half of 2023.
FrieslandCampina also highlighted its financial prudence in response to ongoing global dairy market volatility and economic uncertainties. Although a solid foundation has been laid for a full-year supplementary cash payment, with €61 million accrued based on the first half-year results, the cooperative has decided against making an interim payment to its member dairy farmers.
Operationally, FrieslandCampina continues to advance its organizational optimization under its Expedition 2030 strategy. The cooperative achieved a significant reduction in full-time equivalent (FTE) positions by 1,146 compared to 2023, contributing to €152 million in cost savings. These savings were realized through more efficient production processes, improved procurement of raw materials and packaging, and reduced waste within the supply chain, helping to counteract inflationary pressures.
Despite the dip in milk volume, the dairy giant reported a slight increase in the guaranteed price for milk to €46.53 per 100 kilograms, though this is still 6.9% lower than the previous year. The decrease in milk price was partly mitigated by higher sustainability premiums, with the Foqus planet bonus for sustainable development rising to €1.63 per 100 kilograms of milk from €1.13 in the same period last year. Consequently, the average milk price for the first half of 2024 was €50.09 per 100 kilograms, marking a 3.1% decrease from €51.70 in the first half of 2023.
FrieslandCampina also highlighted its financial prudence in response to ongoing global dairy market volatility and economic uncertainties. Although a solid foundation has been laid for a full-year supplementary cash payment, with €61 million accrued based on the first half-year results, the cooperative has decided against making an interim payment to its member dairy farmers.
Operationally, FrieslandCampina continues to advance its organizational optimization under its Expedition 2030 strategy. The cooperative achieved a significant reduction in full-time equivalent (FTE) positions by 1,146 compared to 2023, contributing to €152 million in cost savings. These savings were realized through more efficient production processes, improved procurement of raw materials and packaging, and reduced waste within the supply chain, helping to counteract inflationary pressures.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
