Dairy co-operative Campina today (Friday) announced a small fall in turnover in 2004 and a cut in the cash price paid to its members for milk, blaming fierce competition among supermarkets and EU dairy reform.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net turnover was €3.559bn (US$4.77bn), compared with €3.665bn in 2003. Campina paid a cash price of €32.89 per 100kg for milk, compared with €33.56 in 2003.
Milk prices were under pressure in 2004, as a result of the EU farm policy reform and persistent fierce price competition between West European supermarket chains, particularly in the Netherlands, the company said.
The EU introduced its new dairy policy in 2004. EU measures are expected to reduce
milk prices by some 20% in the years to 2008. The EU has pledged to settle 60% of
the reduction via individual income compensation. Campina’s aim is to offset the remaining 40% through improved commercial results.
Taking into account the compensation paid by the EU to farmers of €1.18 per 100 kg of milk, Campina said it had succeeded in compensating for the detrimental effects of EU dairy policy.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSales activities in many countries suffered from the exchange rate developments of the US dollar and the Russian rouble, it said.
