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Pricing and Milk Valorization

EPP Manufacturing Pricing Forum - May 2023 - Berlin, Germany

 

  • Royal FrieslandCampina (RFC) as a cooperative is owned by its farmers and receives its farmer’s milk “no matter what”
  • The milk price paid to the farmer is both the main source of income for our farmers, but also the main cost for the company FrieslandCampina
  • One of the main goals of RFC is to get the most value out of its milk as possible
  • This should be achieved by allocating the right amount or milk to the highest valorizing products
  • Meanwhile, pricing of these different products is aimed at optimizing value by offering the right price for the right (sub)product to the right customer at the right time
  • There is especially a lot of focus on timing, as the dairy sector is a very volatile sector with market prices fluctuating significantly over time

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