01 Oct Friesland: Most profit from additives
Infant formula contains about 60 different additives allowing it to be sold at record prices.
In an article in the Dutch daily, De Volkskrant, on 27 August 2015, the FrieslandCampina cooperative explains its huge earnings during the first 6 months of 2015. Its profits came to Euro 192 million, 85% more than during the same period last year. While farmers are earning less on raw milk and orders from China are down, the company is earning “spectacular profits” on dairy products such as baby milks. “Although milk prices are down…. we can make money by adding value to products.” As an example, the article cites baby food which may contain “some 60 different ingredients and is therefore sold at a significantly higher price than ordinary milk powder”. In addition, worldwide infant feeding sales have risen by 15%, which helps to explain a huge part of the extra profit.
The 19,000 dairy farmers who are members of the Friesland cooperative will each receive around Euro 8,000 as their share in the profit.