The Merits of Milk: FrieslandCampina develops cooperative vision for 2025

31 Jul 2017 --- FrieslandCampina have formulated the scope for the development of the cooperative for the coming years, with the cooperative vision 2025 that the company has coined “The Merits of Milk”. Frans Keurentjes, Chairman of the Board says: “With the formulated ambitions as a guideline, we will talk with the member dairy farmers about the required developments for the dairy farming sector and for FrieslandCampina.”

“The success of our own dairy farms is based on individual entrepreneurship and expertise. Market-orientedness from the collective interest forms the basis of the success of both the cooperative and the company. Just as we work on the future of our own dairy farm, we work on the sustainable development of FrieslandCampina together,” he adds.

Rob van Dongen, Manager Corporate Communication spoke with FoodIngredientsFirst: “It is often difficult to describe the future in 2025. We see is that other production aspects than only the milk volume and quality of the milk will be far more important. Sustainability has and will become more and more important.”

“The reasons for the reformulation of the ambitions of the cooperative are the rapid changes in the market and in society, and the fast growth of the dairy farming sector in the Netherlands following the abolishment of the milk quota in 2015. Governments, customers and consumers increasingly take aspects such as sustainability into consideration when deciding what products to buy.”

"We see more and more differences in the interest of farmers and the development of the farms of the farmers,” van Dongen explains. “The individual interest does not always correspond with the collective interest. We will have to determine together how we can best serve the collective interest and at the same time offer sufficient space for variety and entrepreneurship of individual dairy farmers.”

“The dairy farming sector traditionally already makes ample use of circular techniques, for instance by reusing basic materials in an as high-grade as possible manner so as to reduce the waste streams. Circular thinking and acting in the dairy chain offers interesting perspectives. Working together with sectors other than the dairy farming sector can create possibilities for new joint ventures and revenue models,” he notes.

FrieslandCampina wants to create more value for its members, now and for generations to come, through a distinguishing and progressive chain approach that is market-oriented, responds to the developments in society and actively makes a contribution to reaching objectives with respect to climate and environment. We want to be a dairy cooperative that the members are proud of and the milk and dairy products of which are appreciated both regionally and globally.

Respond to rapid changes
The reasons for the reformulation of the ambitions of the cooperative are the rapid changes in the market and in society, and the fast growth of the dairy farming sector in the Netherlands following the abolishment of the milk quota in 2015. Customers and consumers increasingly take aspects such as sustainability into consideration when deciding what products to buy.

Keurentjes also notes: “We think that together redefining the basic principles of the cooperative will guide us into the right direction. We see the differences in the development of the businesses of the members grow. The individual interest does not always correspond with the collective interest. We will have to determine together how we can best serve the collective interest and at the same time offer sufficient space for variety and entrepreneurship.”

Central themes in the vision are “Value for us,” “Care for animals and nature” and “Valuable within and for society.”

FrieslandCampina fully responds to developments in the market and social developments through, among others, the planet quality and sustainability program and joint ventures, such as the Sustainable Dairy Chain (a joint venture of LTO Nederland, the Dutch Federation of Agriculture and Horticulture, and the Dutch Dairy Association NZO). Still, FrieslandCampina wants to accelerate further in order to remain competitive.

Keurentjes finalizes: “Being open to modernizations creates opportunities. If we utilize our inventiveness, share our knowledge and cooperate more with other farmers, suppliers, researchers, customers and other stakeholders, we will create more chances to seize.”

By Elizabeth Green