BELGIUM - FrieslandCampina has agreed to transfer some of its milk suppliers to Milcobel cvba as part of an effort to align supply and demand more closely.
FrieslandCampina said it is currently accepting more milk than its operating company in Belgium can sell, partly due to the increase in milk production during 2015.
Under the terms of the agreement, Milcobel will be buying and guaranteeing the purchase of milk from 443 dairy farm suppliers with effect from 1 February 2016. The agreement guarantees sustained milk sales to the suppliers concerned.
“FrieslandCampina Belgium has taken all steps possible to guarantee the continuity of the dairy farms. In Milcobel, it has now found a suitable partner for the transfer of part of this milk,” says FrieslandCampina Belgium’s General Manager Katrien Bousson.
The agreement states that Milcobel will assume and guarantee the purchase of approximately 180 million litres of milk a year from the 443 dairy supply farms.
It is also inviting the dairy farmers concerned to become members of the Milcobel cooperative from 1 February 2016, the date the agreement takes effect. This will then guarantee the sustained purchase of milk from these suppliers. The dairy farmers can decide for themselves whether to become members.
FrieslandCampina Belgium will continue to collect milk from its remaining 441 dairy suppliers and its 28 Belgian member dairy farmers.
The company said the agreement will result in the loss of two jobs in the milk management department at Aalter.
TheCattleSite News Desk