Dairy giants FrieslandCampina and Hochwald have joined forces to ensure a more sustainable and cost-effective milk collection process.
Detlef Latka, CEO of Hochwald Foods said, "Cooperation between the two cooperatives based on equality creates added value for members - both those of FrieslandCampina and those of Hochwald.
"For me, this is a good example of how cooperatives can work on joint synergy potential while also competing with each other."
Starting in November of this year, FrieslandCampina will transport milk from some of its German member dairy farmers 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 in the Netherlands.
Edwin van Doorne, director of strategy and global supply chain at FrieslandCampina added, "By exchanging member milk with Hochwald in Germany, we can transport our milk more efficiently.
"In doing so, FrieslandCampina and Hochwald show that sustainability and cost savings can go hand in hand."
The milk exchange will result in 'significant' cost savings due to shortened distances between member dairy farms and production sites, the Dutch dairy cooperative noted.
Moreover, it will help both cooperatives to jointly reduce CO2 emissions by more than 1,000 tonnes annually.
The multi-year agreement between FrieslandCampina and Hochwald seeks to achieve long-term benefits for both companies.
For member dairy farmers, this exchange makes no difference as the milk is collected and paid for by their respective cooperatives.