October 18, 2013
FrieslandCampina and Rabobank aim to support dairy farmers in Indonesia and Vietnam by leveraging knowledge and expertise, and financing local farmers' investments such as the purchase of cows, upgrading of barns and purchase of biogas units.
This was announced by Royal FrieslandCampina CEO Cees 't Hart at the formal opening of the FrieslandCampina Innovation Centre by Her Majesty Queen Máxima of the Netherlands. Hart said that it was Queen Maxima who gave them the idea of offering farmers a form of financing as well as training when she visited FrieslandCampina Vietnam in 2011.
FrieslandCampina buys the milk that is produced. The interest and loan repayments are deducted from the price paid for the milk, enabling the farmers to repay the loans in gradual stages. Local farmers are also given training to increase their milk yield and improve its quality.
Rabobank CEO Piet Moerland added, "Through the Rabobank Foundation and Rabo Development, we give farmers in developing countries access to financing. A partnership with FrieslandCampina is of immense added value for dairy farming in both Indonesia and Vietnam."
The projects tie in seamlessly with the Sustainable Business Facility and Food Security Programme (FDOV), to which FrieslandCampina is affiliated in the context of its Dairy Development Programme. It collaborates on the programme with Wageningen University and Agriterra, among others. The programme's aim is to increase the professionalism of farmers so that they will operate more efficiently and supply better quality milk which will in turn boost their income.