FrieslandCampina Offers Extra Cash Payments Amidst Soaring Profits

FrieslandCampina, one of the world’s most prominent dairy cooperatives, announced plans to distribute supplementary cash payments to its dairy farmers following a remarkable operating profit surge to €527 million in 2024. This significant increase comes as part of the co-op’s annual results for the year, highlighting a year of transformation and improvement.

Despite a decrease in overall revenue caused by unfavorable currency translation effects which resulted in a 1.1% drop to €12.9 billion, the co-op maintained a positive operating cash flow, recording €900 million in 2024, an increase from €831 million in the previous year.

Environmental Progress

FrieslandCampina has made significant strides toward reducing greenhouse gas emissions across member dairy farms, achieving a 9.8% reduction compared to 2023. This step aligns with global efforts to combat climate change.

Support for Dairy Farmers

The cooperative announced an increase in the total compensation for its dairy farmers by 5.5% to €4.8 billion. Additionally, the milk price rose by 10.1%, reflecting the cooperative's commitment to providing competitive payments to its members.

The supplementary cash payment for farmers is set at 1.21 euros per 100 kilograms of milk, a notable enhancement from 2023’s zero euros. However, the co-op noted a 3.4% decline in the total volume of supplied member milk, attributed to unfavorable weather conditions and a reduction in the number of member farms.

CEO Jan Derck van Karnebeek emphasized that 2024 was pivotal for the co-op, with a combination of cost reductions, improved business performance, and higher commodity dairy prices allowing for additional rewards for their farmers.