Now half of the Belgian producers that delivered their milk to this factory have been dumped: in a few weeks they will have to look for another dairy to take their milk. FrieslandCampina Belgium has decided to stop collecting milk from 443 Belgian dairy farmers with effect from 1 July 2016. The official reason for this is to adjust the national milk volume to market demand in Belgium. According to a FrieslandCampina press release, more milk was produced in Belgium in 2015 than can be sold in the country.
The real reason is quite evident for me: Dutch farmers are cooperative members, the Belgians not! The Dutch members are favoured and are allowed to continue to deliver their milk to the detriment of the non-members (in this case the Belgian farmers). For this reason, a part of the farmers now have to look for another dairy. The other part – those who can stay – have the assurance to stay there for only 3 years.
Milcobel
The so-called “competitor” Milcobel has now signed an agreement to take on the milk producers concerned. FrieslandCampina is paying dairy farmers who become Milcobel members as from 1st February 2016 a bonus of three cents a litre of milk based on the milk supplied in 2015. Of this, 2.5 cents go into Milcobel’s member account, and the farmers retain 0.5 cents. Farmers who go to another dairy or who switch to Milcobel after 1st February 2016 or who decide to stop supplying milk from the beginning of July will receive 0.5 cents per litre of milk in compensation. Milcobel also promises to give a bonus to the new members who increase their production later on!
Milcobel, it should be said, pays less than other dairies in the country. So it’s hardly a windfall! But Milcobel is hoping to make its oversized milk powder facilities profitable with this transaction.
