Higher Profit at FrieslandCampina Limits Drop in Milk Price for Member Dairy Farmers

Additionally lower purchasing costs and currency translation effects contributed positively. Net profit increased by 13.2 percent to 343 million euro. The volume of milk supplied by member dairy farmers increased by 6.4 percent to 10.1 billion kilo. Revenue fell by 0.7 percent to 11,265 million euro. Cash flow from operating activities rose to 1,019 million euro as a result of lower working capital coupled with higher profit.

 

The milk price for member dairy farmers fell by 18.9 percent to 34.64 euro per 100 kilos of milk due to the lower guaranteed price for raw milk. As a result of the higher profit, value creation (performance premium plus distribution in member bonds) rose by 20.5 percent to 3.53 euro. This limited the drop in the milk price for the member dairy farmers to some extent.

 

Roelof Joosten, CEO Royal FrieslandCampina N.V. says: “2015 was an exceptional year for the dairy sector and for FrieslandCampina. On 1 April 2015 the milk quota system for dairy farmers was abolished after 31 years. In an uncertain dairy market FrieslandCampina performed well. This good result could, to some extent offset the reduction of the milk price for member dairy farmers.”

 

“FrieslandCampina’s unique dairy chain underpins its activities. In recent years FrieslandCampina has performed well in a number of attractive market positions. The focus remains on sustainable growth of the most valuable product market combinations and product market combinations that absorb mainly member milk. At the same time we will continue to manage in a very cost-conscious way so that the means to achieve growth are available,” Joosten adds.