The cooperative is the sole shareholder of Fezland. Its primary goal is to obtain considerable income for dairy farmers, followed by the safety of dairy products.
The fresh milk of the members of the cooperative must be sold to the cooperative. In addition, the cooperative society allocates 55% of the profits each year, and the remaining 45% is used to develop the cooperative. Through the organization and resources of cooperatives to ensure that dairy farmers get a considerable income. At the same time, cooperatives can also provide financial incentives for dairy farmers who produce high-quality milk, and economic penalties for dairy farmers who do not perform well in product quality.
According to a resolution voted by all member farmers, in Friesland Cooperative, the dairy farmer had serious quality violations for the first time. The fine and compensation made by the cooperative was equivalent to 3% of the family farm’s annual turnover. 15% of revenue. For two serious quality violations, the membership of the cooperative will be terminated and the dairy farming industry will be completely expelled.
After more than 140 years of merger and expansion, the Royal Friesland Cooperative of the Netherlands has attracted nearly 20,000 member farmers from the Netherlands, Belgium, and Germany. In 2012, Friesland’s sales revenue reached 10.3 billion euros, which is equivalent to Yili, Mengniu, and Guangming. The sum of the three major dairy product groups.
In the Netherlands, farmers belong to the upper middle income group. In 2012, the operating income of a medium-sized family dairy farm in the Royal Friesland Cooperative totaled approximately 290,000 Euros and an operating profit of 64,000 Euros. Among them, 79.4% came from the sales of milk and calves, and 20.4% came from the cash dividends, bond dividends, and bond interest distributed to farmers by multinational companies through cooperative organizations. Thanks to this model, the Dutch farming industry has become a "decent profession"
