FrieslandCampina Members’ Council adopts proposal on future-proof member financing

Date: 17.06.2021Source: FrieslandCampina

The Members’ Council of Zuivelcoöperatie FrieslandCampina U.A. has adopted the proposal on a future-proof member financing system by a broad majority. In addition, Mr Frans Keurentjes, chair of the Board of the cooperative and of the Supervisory Board of the company passed the position of chair on to Mr Erwin Wunnekink. Furthermore, the Members’ Council appointed a new Board member and reappointed two Board members. Finally, the management provided the Members’ Council with an update on developments in society, on economic developments and developments within the dairy market and the company.

At the heart of the revised member financing system is the linking of a significant part of members’ capital to their milk deliveries through delivery certificates and a cooperative solution for the future tradability of free member bonds. This is to reduce the imbalances in members’ capital commitment caused by an ageing membership. In addition, it will also improve the quality of the company’s equity as a result of the issuance of the delivery certificates. The revised member financing system will take effect as of 1 January 2022.

Said Erwin Wunnekink, chair of Zuivelcoöperatie FrieslandCampina U.A.: “By adopting the proposal for a new member financing system, we, as members, are demonstrating that there is still a strong desire to work together in a cooperative context. In my view, the resolution of the imbalance in free member bonds, caused by an ageing member base, by current members is living proof of this commitment. Similarly, the fact that, as of next year, we will jointly be issuing delivery certificates to the amount of roughly 800 million euros is an important signal that the members believe in processing our milk in a cooperative context. Together, we will enable the company’s Executive Board to realise its plans and continue to build on a future-proof dairy company and thereby achieve a good milk price and a good return for our members.”  For more visit frieslandcampina.com

David Cox / IDM

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