June 19, 2024

FrieslandCampina dairy farmers earn US$263 million in sustainability premiums for 2023

Of the total amount, approximately EUR 190 million (US$204 million) is distributed through the 'Foqus planet Sustainable development' incentive system, and over EUR 55 million (US$59 million) is awarded for participation in special milk flows such as organic, On the way to PlanetProof, and VLOG. This equates to an average of EUR 2.63 (US$2.82) in premiums per 100 kg of farm milk.

The Foqus planet premium is funded by the company, customers supporting sustainability efforts, and the farmers themselves through a cooperative deposit of EUR 0.60 (US$0.64) per 100 kg of milk, totalling over EUR 56 million (US$60 million).

Cor Hoogeveen, executive board member of Zuivelcoöperatie FrieslandCampina U.A., explained, "In 2023, under 'Foqus planet Sustainable development', we introduced a new system for sustainability bonus payments. This is the first round of payments under this system. Our members wanted to know the financial return for specific sustainability results. Foqus planet Sustainable development provides this insight, encouraging further steps. Each dairy farmer can choose sustainability measures that suit their farming practice, benefiting from our diversity. We are proud of the results achieved by our dairy farmers and appreciate their dedication."

Mireille Einwachter, chief sustainability officer at Royal FrieslandCampina N.V., added, "More customers are setting specific climate goals, and we are partnering with them to meet these goals. Foqus planet Sustainable development allows us to demonstrate our sustainability performance transparently, backed by hard data, contributing to their goals. Our customers understand the financial impact of sustainability efforts on farms and are willing to invest jointly. Our strategic collaborations with companies like Mars, Mondelēz, Danone, Nestlé, and McDonald's reflect the growing interest in sustainability. We invite other market parties to join us in making the dairy supply chain more sustainable."

Foqus planet Sustainable development rewards resulted in nine sustainability indicators across four themes: animal health and welfare, climate, biodiversity, and grazing. The system clearly shows dairy farmers the financial return from specific results. The maximum premium is EUR 3.50 (US$3.76) per 100 kg of milk for achieving maximum scores in all indicators.

The aim of Foqus planet Sustainable development is to accelerate sustainability development, focusing on climate. FrieslandCampina will continue to organize climate workshops and has developed the Measures tool, an online simulation program that calculates the effects of measures on farm sustainability results. Additionally, FrieslandCampina collaborates with various parties to promote innovations that reduce climate and nature impact, such as feed additives and carbon sequestration through permanent grassland.

As an extra incentive, the highest bonus within Foqus planet Sustainable development is for the greenhouse gas emission indicator, which can be as much as EUR 1.50 (US$1.61) per 100 kg of milk. Reducing greenhouse gas emissions at member dairy farms is part of FrieslandCampina's Climate Plan. The greenhouse gas emissions results for 2023 will be calculated and recorded in the coming weeks. FrieslandCampina will publish the total greenhouse gas reduction for 2023 in July, including the results achieved on member dairy farms.

-      FrieslandCampina