Dairy giants FrieslandCampina and Hochwald have joined forces to ensure a more sustainable and cost-effective milk collection process, reports European Supermarket Magazine.

Lower costs, shorter distances

FrieslandCampina and Hochwald plan to reduce the distance between dairy farms and processing locations by exchanging milk from member suppliers between companies.

Detlef Latka, CEO of Hochwald Foods, said: "The cooperation between the two cooperatives based on equality creates added value for members - both those from FrieslandCampina and those from Hochwald.

"For me, this is a good example of how cooperatives can work towards common synergy potential while competing with each other at the same time."

Milk exchange

Starting November this year, FrieslandCampina will transport milk from some of its German dairy farmer members to Hochwald's production sites in Germany using its own transport.

In turn, Hochwald will transport the same amount of milk from its dairy farmer members, located in the border area with the Netherlands, to FrieslandCampina's production site in Veghel, the Netherlands.

Edwin van Doorne, Director of Strategy and Global Supply Chain at FrieslandCampina, added: "By exchanging member milk with Hochwald from Germany, we can transport the milk more efficiently.

"In doing so, FrieslandCampina and Hochwald show that sustainability and cost savings can go hand in hand."

Savings

The milk exchange will result in "significant" cost savings due to the short distances between member farms and production sites, the Dutch dairy cooperative mentioned. Additionally, it will help both cooperatives collectively reduce CO2 emissions by over 1,000 tons annually.

The multi-year agreement between FrieslandCampina and Hochwald aims to achieve long-term benefits for both companies.

For the member dairy farmers, this exchange makes no difference since the milk is collected and paid for by their respective cooperatives. (Photo: Freepik)