13 March 2012

2 minute read

Europe

The essence of the cooperation is that FrieslandCampina and CRV will be investigating how they can offer their member dairy farmers the tools they need to support them in improving the sustainability of their business operations. Themes that could be discussed include:

• Responsible veterinary medicine use;
• Improved udder health;
• Improved claw health;
Improved mineral utilisation.

CRV is in a position to provide FrieslandCampina with key figures that will assist member dairy farmers in their management activities.

FrieslandCampina will then be able to use this information as input for example for workshops to be organised for member dairy farmers wishing to improve udder health on their dairy farms.

We also expect both cooperatives to jointly develop new management tools and further expand existing products.

The cooperative venture confirms the solid attention focused by both cooperatives on sustainability.

Expansion in Asia

This week FrieslandCampina also announced that is has purchased a controlling interest in the Alaska Milk Corporation (AMC), one of the largest dairy companies in the Philippines and listed on the Philippine Stock Exchange.

FrieslandCampina is increasing its stake from about 8.1 [er cent to 68.9 per cent via a purchase of 535.7 million shares held by the Uytengsu Family, the founders and controlling shareholders of AMC, at a price per share of up to PHP 24.00.

Mr Wilfred Steven Uytengsu will continue to lead AMC's management team as President and Chief Executive Officer and will remain a director of the company. With this acquisition FrieslandCampina adds a market of approximately 100 million consumers to its existing consumer base.

With annual revenues of over EUR 200 million, AMC has emerged as the leading player in the Philippine milk industry.

This transaction will strengthen FrieslandCampina’s position in Asia, which is a strategic growth area for the dairy multinational. FrieslandCampina is already present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore.

Wilfred Steven Uytengsu, President and Chief Executive Officer of AMC said: “We expect this historical agreement to propel AMC to its next stage of growth and that the products developed by FrieslandCampina will strengthen our positions in all dairy categories. The intended integration will provide AMC with access to an international dairy company that has production plants in 25 countries and with products that are sold in over 100 countries worldwide. Most notably, FrieslandCampina’s growing commitment to the Philippines is a vote of confidence for our country and its bright prospects.”