Dairy cooperatives FrieslandCampina and Hochwald have announced a joint venture to launch a member milk exchange. This collaboration aims to develop a more sustainable milk collection system, reducing the distance between dairy farms and processing facilities. Starting in November, FrieslandCampina will transport milk from its German member dairy farmers to Hochwald’s German production sites. Similarly, Hochwald will transfer the same volume of milk from its Dutch border member dairy farms to FrieslandCampina’s production facility in the southern Netherlands region of Veghel. The companies have stated that this “multi-year” partnership signifies a long-term commitment to improving efficiency and sustainability within the dairy industry.
This joint venture is expected to have several benefits. Firstly, by shortening the distance between member dairy farms and production facilities, it will help reduce costs for both FrieslandCampina and Hochwald. Additionally, the companies anticipate a significant reduction in CO2 emissions, exceeding 1,000 tonnes per year, through the implementation of this exchange. Furthermore, this collaboration ensures that member dairy farmers will not be negatively impacted, as their respective dairy cooperatives will still be responsible for the payment and collection of the milk.
Detlef Latka, CEO of Hochwald Foods, expressed his belief that this cooperative effort between two equal cooperatives demonstrates the value it can bring to members of both FrieslandCampina and Hochwald. He views it as an excellent example of how cooperatives can work together to achieve synergy and competitiveness simultaneously.
Looking at FrieslandCampina’s financial goals, the company recently announced plans to reduce costs in an effort to save €400-500 million ($423-528 million) annually from 2026. This move comes after a significant decrease in net profit during the first half of 2023, where it dropped by 94% year-on-year. Therefore, this member milk exchange with Hochwald aligns with FrieslandCampina’s strategic objective to enhance efficiency and profitability.
