Limelco and FrieslandCampina Belgium Enter Into Agreement to Purchase Raw Milk

21 Mar 2013 --- The dairy companies, Limelco and FrieslandCampina Belgium, have entered into an agreement to better align the purchase of Belgium milk to the current requirement of both dairy companies. Under the agreement, Limelco wants to take over and future-proof the purchasing and processing of the milk of approximately twenty per cent of the FrieslandCampina suppliers.

The suppliers involved are located in Limburg, Antwerp, Flemish and Walloon Brabant, Liege, Namen and Henegouwen. This will enable Limelco to further maximise its industrial operations. FrieslandCampina will continue to collect and process the milk from all suppliers in the provinces of East and West Flanders, from all suppliers of Campina milk and from its member dairy farmers in Belgium. The range of products that FrieslandCampina supplies to the Belgian market will remain unchanged.

Within the framework of its strategic ambitions, the Limburg-based dairy producer, Limelco, plans to maximise its production of industrial dairy products, including skimmed milk powders for human consumption. Limelco was looking to achieve a broad-based supply of its own milk.

FrieslandCampina wants to align the volume of milk it purchases from suppliers in Belgium to the market demand in Belgium. FrieslandCampina currently collects more milk from its Belgian suppliers than it can sell on the Belgian market.

Limelco is assuring the suppliers involved that their milk will continue to be purchased and processed for a period of several years.

Limelco and FrieslandCampina will shortly be informing the relevant suppliers and agricultural organisations about their agreement.

The agreement will be concluded subject to compliance with all legal and contractual formalities.