Dairy companies Hochwald and FrieslandCampina have decided to join forces for more efficient milk collection. By exchanging member milk between the companies, the distance from dairy farms to processing locations will be significantly shortened/reduced. This will lead to cost savings and a more sustainable way of milk collection, as shorter distances will be driven and therefore CO2 emissions will be reduced.
Detlef Latka, CEO Hochwald Foods said: “Cooperation between two cooperatives based on equality creates added value for members - both those of FrieslandCampina and those of Hochwald. For me, this is a good example of how cooperatives can work on joint synergy potential while also competing with each other.”
Edwin van Doorne, Director of Strategy Global Supply Chain at FrieslandCampina added: “By exchanging member milk with Hochwald in Germany, we can transport our milk more efficiently. In doing so, FrieslandCampina and Hochwald show that sustainability and cost savings can go hand in hand.” FrieslandCampina will transport milk from some of its German member dairy farmers to Hochwald's production sites in Germany using its own transport starting from November 2023. In turn, Hochwald will transport the same amount of milk from its own member dairy farms located in the border area with the Netherlands to FrieslandCampina's production site in Veghel in the Netherlands.
With the milk exchange, there are significant cost savings due to the significantly shortened distances between member dairy farms and production sites. Moreover, both cooperatives jointly reduce CO2 emissions in this way with an annual impact of more than 1,000 tonnes of CO2. The multi-year agreement between FrieslandCampina and Hochwald is aimed at long-term benefits for both companies. For member dairy farmers, this exchange makes no difference. The milk is collected and paid for by their own dairy cooperative.