Friesland Reports Provisional 2007 Milk Price of 37.07 Euros

15/05/08 The provisional milk price of Zuivelcoöperatie Friesland Foods for 2007 is 37.07 euros per hundred kilos of milk (including 5.374% VAT).

The average fat content of the milk in 2007 was 4.411% and the protein content 3.506%. Of the milk price of 37.07 euros, 34.95 euros has been paid as average advance to the member dairy farmers. The subsequent payment is 2.12 euros per hundred kilos of milk, or 6.06% of the advance milk payment. In 2006, the milk price was 30.84 euros (4.435% fat content, 3.483% protein content).

In addition to the milk payment, the member dairy farmers of Friesland Foods receive a dividend based on the company’s profit. Royal Friesland Foods achieved a profit for 2007 of 172 million euros. Of this profit, 112 million euros was added to reserves and 60 million euros made available for distribution as dividend. Member dairy farmers have received a dividend of 0.36 (excluding VAT) euros on A shares per hundred kilos of milk supplied (2006: 0.33 euros). Holders of depositary receipts for B shares have received a dividend of 10.24 euros per depositary receipt (2006: 6.81 euros).

The 2007 milk price is not final yet. The provisional milk price has been set in line with the amount assumed in the Annual Report 2007. The final milk price will be set by 1 November 2008 based on the milk payment regulations.