Outcome of the FrieslandCampina Standstill Measure

FrieslandCampina introduced a temporary standstill measure from 9th January to 1st March 2017 to ensure compliance with their national phosphate reduction plan. The objective of the standstill measure was to keep the total milk supply of FrieslandCampina in balance with the company’s processing capacity. A total of 53 million kilos of less milk was supplied over the two month period.

In the period from 1 February to 28 February 2017 inclusive, 8,084 dairy farms supplied 39.7 million kilos less milk compared to the reference volume established for each dairy farm. These farms will receive a premium of 12.65 euro for each 100 kilos less supplied milk in February. The premium for January was 10.19 euro per 100 kilos milk.

In the period from 1 February to 28 February 2017 inclusive, 4,167 dairy farms supplied 12.7 million kilos milk above the reference volume established for each dairy farm. To these farms, a deduction applies of 31.50 euro per 100 kilos milk (90 percent of the guaranteed price of February 2017) for the amount of milk above the reference volume. The deduction and the premium were settled in the milk money account for each month of the scheme.

Eamonn Farrell

Agri Food Policy Executive