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FrieslandCampina dairy farmers receive over 245 million euros as sustainability premiums

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FrieslandCampina member dairy farmers have taken significant steps in 2023 to make their dairy farms even more sustainable. The dairy farmers, who own dairy company FrieslandCampina through the cooperative, receive premiums of more than 245 million  euros in total for their sustainability achievements. Of that amount, around 190 million euros is paid through the ‘Foqus planet Sustainable development’ incentive system and over 55 million euros for participation in a special milk flow such as organic, On the way to PlanetProof and VLOG. This amounts in total to an average of 2.63 euros in premiums per 100 kilograms of farm milk.

The Foqus planet premium received by member dairy farmers is partly funded by the company, partly by customers paying for sustainability efforts, and partly by the member dairy farmers themselves through a cooperative deposit of 0.60 euros per 100 kilogrammes of milk, amounting to over 56 million euros.

Cor Hoogeveen, Executive Board member of the dairy cooperative Zuivelcoöperatie FrieslandCampina U.A., explained, “In 2023, under the name ‘Foqus planet Sustainable development’, we launched a new system for the payment of our sustainability bonuses. This is the first round of payments according to the new system. Our members were keen to know in advance the financial return in euros for specific sustainability results. Foqus planet Sustainable development offers precisely that insight, which encourages farmers to take further steps. Every dairy farmer is free to select sustainability measures that match his or her own farming practice, thereby allowing us to benefit optimally from our diversity. As the Board we are tremendously proud of the results achieved by our dairy farmers, and would like to express our gratitude for their enormous dedication.”

Mireille Einwachter, Chief Sustainability Officer at Royal FrieslandCampina N.V., continued, “More and more customers of FrieslandCampina are setting specific climate goals. We are a partner for them in fulfilling those goals. Thanks to Foqus planet Sustainable development, we are able to demonstrate our sustainability performance transparently, backed up by hard data, as a meaningful contribution to achieving their own goals. Our customers realise that these sustainability efforts have financial consequences on the farm, and as such are willing to jointly invest in sustainability. As reflected for example in our strategic collaborations with companies like Mars, Mondelēz, Danone, Nestlé and McDonald’s, interest in sustainability continues to grow. We are keen to invite other market parties to also join us in helping to make the dairy supply chain even more sustainable.”

Transparent financial rewards for members

Foqus planet Sustainable development rewards results in nine sustainability indicators across four themes: animal health and welfare, climate, biodiversity and grazing. The system makes clear to the dairy farmers the financial return from a specific result. The maximum Foqus planet premium is 3.50 euros per 100 kg of milk in return for a maximum score in all indicators.

 

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Acceleration for climate

The aim of Foqus planet Sustainable development is to accelerate the development of sustainability, with a clear focus at present on climate. To support our members in achieving this goal, FrieslandCampina will continue to organise a series of climate workshops and has developed the Measures tool; an online simulation programme that calculates the effects of measures on the farm for the sustainability results in Foqus planet. In addition, FrieslandCampina is working alongside various parties to promote innovations that will reduce the impact on the climate and nature, such as feed additives and carbon sequestration though the establishment of permanent grassland.

As an extra form of encouragement for members, the highest bonus within Foqus planet Sustainable development is paid for the indicator greenhouse gas emission; this bonus can be as much as 1.50 euros per 100 kg of milk. Reducing greenhouse gas emissions at member dairy farms is an integral part of FrieslandCampina’s Climate Plan. The results for greenhouse gas emissions on the farm in 2023 will be further calculated and recorded, over the next few weeks, according to this methodology. FrieslandCampina will be publishing the total greenhouse gas reduction in 2023 in July, including the results achieved on member dairy farms.

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