The guaranteed price is part of the annual milk price that FrieslandCampina will pay the member dairy farmers

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Guaranteed price

Guaranteed price

The guaranteed price is the amount per 100 kilogrammes of milk that FrieslandCampina is guaranteed to pay to its member dairy farmers monthly. Every month, the guaranteed price is estimated based on the trend in the published milk prices of the benchmark companies. Any adjustment to the estimate of the milk prices can be implemented in a subsequent month.

More information on the guaranteed price
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Nourishing by nature

Nourishing by nature

Providing people around the world with the right nutrition is the challenge. Milk, by nature, contains essential nutrients such as proteins, vitamins B2 and B12, and minerals such as calcium. By offering trustworthy and tasty dairy products, FrieslandCampina is contributing towards safeguarding food and nutrient security. FrieslandCampina also strives to limit the pressure on natural sources and the environment.

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Our heritage

Our heritage

It all began in the 1871 when farmers join forces in local cooperative dairy factories all over the Netherlands. One of the reasons for doing so, was the lack of refrigeration. The farmers had to work together to deliver the milk quickly to their customers. Another reason to join forces was to gain more power in the market.

In late December 2008 FrieslandCampina is founded on two great Dutch dairy companies: Friesland Foods and Campina, which developed along similar lines in the 19th and 20th centuries.

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Milk price explained

The member dairy farmers in the Netherlands, Germany and Belgium are the joint owners of Koninklijke FrieslandCampina N.V. through Zuivelcoöperatie FrieslandCampina U.A.  The annual milk price that FrieslandCampina will pay the member dairy farmers as of 2014 comprises:

  • the guaranteed  price
  • the performance premium
  • the meadow milk premium
  • the special supplements (together the cash price) and
  • the distribution of member bonds.

Protein, fat and lactose

As of 2014 the price paid for milk will be based on the value of the supplied kilograms of protein, fat and lactose in the ratio 10:5:1. The FrieslandCampina performance price comprises the milk price (as described above), plus the interest on member certificates and member bonds and the addition to the Company’s general reserve.

Guaranteed price, performance premium and member bonds

The profit of Royal FrieslandCampina N.V. in 2014-2016 will be divided (based on the guaranteed price and after deduction of the recompense on member bonds and the profit attributable to minority interests) like this:

  • 45 percent will be added to the Company’s equity
  • 35 percent will be paid out to the member dairy farmers as performance premium
  • 20 percent will be paid out to the member dairy farmers  in the form of fixed member bonds

The pay-out of fixed member bonds will be calculated on the basis of the value of the milk supplied during the financial year.

Interim pay-out

In September 2014 an interim amount based on the Company’s results for the first half of the year and the quantity of milk supplied was paid out for the first time. The interim pay-out amounts to 75 percent of the pro forma performance premium over the first half of the year. The final settlement will be paid out in April of the following year on the basis of the Company’s annual results and the total quantity of milk supplied.