Advocating the Dutch Way of Organic Dairy Farming to Enhance Biodiversity within the Agricultural Ecosystem

HONG
KONG, CHINA - Media OutReach -
5 August 2020 - As one of the
world's leading and largest dairy cooperatives with almost 150 years of Dutch dairy
heritage and expertise, FrieslandCampina
is committed to providing better nutrition for the world while ensuring a good living
for the farmers and creating a sustainable natural environment for now and for
generations to come. In response to the rising consumer demand for organic
products, the company announced the launch of a new
ultra-premium organic milk formula Organic FRISO PRESTIGE^® BIO
globally, with Hong Kong chosen as the first market.

FrieslandCampina announced the launch of a new
ultra-premium organic milk formula Organic FRISO PRESTIGE^® BIO
globally, with Hong Kong chosen as the first market.

The new Organic FRISO PRESTIGE^® BIO is
crafted from the natural richness of organic farms which are full of diversity
and life, enabling to achieve around 50 varieties of living things commonly
seen in the Netherlands.

Organic
FRISO PRESTIGE^® BIO is now traceable on TrackEasy^#, an
industry-first smart packaging innovation that enables consumers to trace every
step in the process; from milk collection in FrieslandCampina's Dutch own
farms, through packaging, final quality checks, export permissions and all the
way to the date of arrival, thus giving consumers peace of mind.

Organic
milk formula growing strong

In recent years, the demand for
organic products has been gaining popularity as consumers increasingly consider
the health and environmental consequences of their food choices. Globally, 20%
of people look for an organic statement when buying a product with 36% saying this
influences their purchasing behaviours[1].
​Of all the food categories,
the Baby & Toddler category has shown the strongest growth (18%) in organic
product launches over the past year. In 2019, more than 5,000 organic Baby
& Toddler products were launched globally, representing a growth of 200%
compared to 2015[2]. Organic
milk formula experienced the highest growth, increasing 30% in value to reach
EUR 2 billion in 2019, and is expected to grow at 13.5% CAGR throughout 2020 --
2024[3],
reflecting the growing interest among parents for organically sourced milk formula.​ Organic
milk formula has led the category growth in the last 3 years, accounting for 6%
of the category value[4].

As a key market
of the milk formula industry in the APAC region, Hong Kong has been selected as the first
market to launch the new Organic FRISO PRESTIGE^® BIO.

Mr.
Berndt Kodden, President FrieslandCampina Specialised Nutrition said "Organic solutions are crucial, but it is
never easy to develop organic products and meet the stringent requirements of our
unique from grass to glass process. Massive efforts have been contributed to
ensure that our dairy farms and production plants are organically certified."
Empowered by its unique control from grass to glass, FrieslandCampina is able
to ensure the highest quality and safety standards throughout the entire global
supply chain, from its own organic dairy farms right through to consumer distribution.
Each step between milking the cows, guaranteeing quality in factories and
delivering products to the supermarkets is managed and controlled by
FrieslandCampina.

Leading the Dutch standard
of organic dairy farming

40 years ago, FrieslandCampina member
farmers started pioneering organic dairy farming in the Netherlands. Among more
than 11,400 FrieslandCampina member dairy farms, 150 are dedicated to organic
dairy farming, where the rich organic milk is produced. Pier
Swierstra, the 4^th generation member farmer of FrieslandCampina whose farm has been certified
as organic since 2012, said "For generations, my family has been committed to working
closely with nature. We practise organic farming so that we pass on only the
best things to the next generation. We work hard every day to maintain a
healthy and biodiverse ecosystem to nurture strong and healthy cows that
produce natural and nutritious organic milk."

At FrieslandCampina's organic farms,
dairy cows enjoy a minimum living area of 6 sq. m. per head and permanent
access to open air grazing areas, if
weather conditions permit. Farmers give their dairy cows 100% organic feeds. Any
preventive use of antibiotics, hormones, mineral nitrogen fertilisers or growth
enhancers is strictly prohibited. On top of adhering to the EU's organic
certification standards, all these organic farms choose to comply with the Aanvullende Normen, additional stringent
requirements initiated by Dutch organic farmers themselves to guarantee the high
standard for ecological dairy farming with an extra focus on animal welfare,
use of medicines, outdoor grazing and biodiversity.

Dr. Marchel
Gorselink, Director Development FrieslandCampina Specialised Nutrition, said "With Aanvullende Normen, a minimum 5% of land
must be in its natural state, meaning that 5% of the land use must be under
nature conservation. This has contributed to a healthy ecosystem with rich
biodiversity at FrieslandCampina's organic dairy farms, enabling to achieve around
50 varieties of living things[5]."
According to Dr. Gorselink, the new Organic
FRISO PRESTIGE^® BIO is crafted from the natural richness of organic
farms which are full of diversity and life. For example, dandelions, a common
plant on Dutch protein-rich grasslands, supply dairy cows with calcium which is
important for milk production.

By harnessing the precious Organic
First Layer of Milk*, Organic FRISO PRESTIGE^® BIO is produced with
high nutritional value and benefits, making it close to original milk⁺.
It contains precious natural nutrients: sn-2
Palmitate^{^}, Phospholipids^{^} and MCFA & SCFA^{^▲} in their natural
structures to help better support digestion, as well as support a child's
overall development.

Collaborating with WNF and
Rabobank to drive sustainable dairy farming with Biodiversity Monitor

Mr. Berndt Kodden, President FrieslandCampina Specialised Nutrition, said "In the Netherlands,
over 75% of all dairy farmers are members of FrieslandCampina, who potentially
have a tremendous influence on the biodiversity on their farms and in the surrounding
nature reserves. Aiming to be a driver of sustainable dairy farming for the
broader industry, we have joined forces with the World Wide Fund for Nature's
Netherlands office (WNF) and Rabobank to create the Biodiversity Monitor. It is
a comprehensive methodology to measure a dairy farm's influence on
biodiversity, making it possible to quantify results to help improve
biodiversity in agriculture and reward dairy farmers through supply chain
partners and other stakeholders."

Biodiversity Monitor sets out 7 Key
Performance Indicators (KPIs) that align with the guidelines of the Food and
Agriculture Organization of the United Nations' Livestock Environmental
Assessment and Performance (FAO-LEAP) and the Natural Capital Protocol. They include:
1) greenhouse gas emissions; 2) ammonia emissions; 3) nitrogen soil surplus,
which can decrease negative impacts on biodiversity, and 4) share of own
farmland used for protein production; 5) share of permanent grassland; 6) share
of nature and landscape; 7) share of multifunctional grassland, which can
increase positive impacts on biodiversity.

At FrieslandCampina, all member dairy
farms implement Biodiversity Monitor. It has been incorporated into FrieslandCampina's
extensive monitoring programme "Foqus
Planet" so member farmers can know their farm emissions data, share
knowledge, measure actions and monitor the climate. In order to achieve the
target of being carbon neutral by 2050, an array of
sustainability
initiatives have been implemented, resulting in milestone achievements. For
example:

          
i.      
100%
of the farms use RTRS-certified responsible soy for cow feeds.

        
ii.      
3.5%
increase of permanent grassland in the Netherlands since 2015.

       
iii.      
100%
of the farms implement Carbon Footprint Monitor, making FrieslandCampina the
only dairy company in the world to provide large scale complete and credible
greenhouse gas emissions data.

       
iv.      
In
2019, greenhouse gas emissions from production and transport by
FrieslandCampina reduced by around 10%.

        
v.      
Over
2,500 member dairy farmers have installed solar panels, windmills and
mono-manure digesters, producing enough green electricity to supply
approximately 200,000 households.

       
vi.      
100%
of electricity consumption in FrieslandCampina Europe's operation (production
and transport) is green.

Organic FRISO PRESTIGE^®
BIO now traceable on TrackEasy^#

As outline by Food and Agricultural
Organisation of the United Nations (FAO), consumers need access to timely,
clear, reliable information to make good food choices with the rising
complexity of food safety. According to a recent survey conducted by
independent market research company Nielsen[6],
among the 1,000+ mums interviewed in Hong Kong and mainland China, milk formula
(80%) topped the list of baby-related products that they are most concerned
about. Before the purchase, they spend an average of 3 hours conducting
research on milk formula. The top 3 kinds of information that mums want to
trace in detail include quality check during production (71%) and food source
(63%), production environment (65%) and how the product is made (63%). Mums
want brands to be more transparent about their food sources (97%) and
production process (96%), enabling them to make better choices.

Mr. Berndt
Kodden, President
FrieslandCampina Specialised Nutrition, said "To strengthen parents' trust
and empower them in making more informed milk formula purchasing decisions,
FRISO^® TrackEasy^# has been launched as an industry-first
smart packaging innovation that enables consumers to access and trace the fully
controlled Dutch supply chain process. By scanning a QR code specific to each
batch of milk formula tins, including the newly launched Organic FRISO PRESTIGE^®
BIO product range, consumers can trace every step in the process; from milk collection
in FrieslandCampina's own farms in the Netherlands, through packaging,
final quality checks, export permissions and all the way to the date of
arrival, thus giving consumers peace of mind."

Geared up for the new frontier online

In Hong Kong,
there are more and more pollutions that may affect children's health nowadays.
Therefore, parents are looking for products from secured sources. Ms. Helena He, Managing Director of
FrieslandCampina (Hong Kong) Limited, said "As well as putting extra emphasis
on the scientific benefits of our products in maintaining a good immune system,
we also focus on our innovative TrackEasy^# to address consumers' concerns
on food safety and traceability. In 2020, the average number of monthly
TrackEasy^# scans nearly doubled as compared to last year. Despite
the quick and easy access to information on the system, consumers are spending
more time on each page with a 0% bounce rate, showing their intentions to look
for solid evidences to ensure the safety and quality along our from grass to
glass production process."

The pandemic has changed not only the
way consumers select the products, but also how they shop. According to Nielsen[7],
over 50% of the people interviewed would shop online more frequently than 6 -- 9
months before the pandemic and over one third would shop less often at grocery
and convenience stores. Such behaviour is expected to continue for 2 -- 6
months. Ms. He said, "In view of the changing consumer behaviours during
the pandemic, we have been swift in gearing up and expanding our marketing
initiatives to reach our target consumers and stakeholders through online,
social media and e-commerce channels. On top of our FRISO^® Easyorder
e-shop and dedicated online promotions with major e-commerce platforms, we are
the first milk formula brand in Hong Kong to leverage chatbot technology in
conducting pre-natal classes and digitalise our engagement with healthcare
practitioners."

In the future,
the company will continue to create more local contents and organise more
marketing activities to promote the e-stores of FRISO^® and TrackEasy^#
which empowers parents in making more informed decisions when purchasing milk
formula. 

Please
download hi-res photos here: https://bit.ly/2PlPpQ7

Appropriate intake
of growing-up formula can be part of a balanced diet.

Breastfeeding
provides the best nutrition for healthy growth and development of babies.

FrieslandCampina N.V.’s subsidiary in Hong Kong – nourishing the lives of Hong Kong people

FrieslandCampina (Hong Kong) Limited (FCHK), a subsidiary of FrieslandCampina, has maintained a long presence in
Hong Kong since 1938. Building on FrieslandCampina's almost 150 years
of Dutch dairy heritage and expertise, the from grass to glass stringent global
supply chain and constant innovation that unlocks the nutritional potential of milk, FCHK has been leading the
development of dairy industry in Hong Kong, nourishing the lives of Hong
Kong people across all ages with its full range of high quality and nutritious dairy products, including FRISO^® milk
powder for pregnant and lactating women, infant and toddler milk
formula, DUTCH LADY^® dairy based beverages, BLACK & WHITE^® and LONGEVITY^® dairy products, and
OPTIMEL^® adult
nutrition formula for consumers, customers and food service business partners
through a wide network in both retail and business channels in
Hong Kong and Macau.

As
Hong Kong people's partner in health, FCHK supports local food banks and
charity groups and provides food assistance to people in need. In 2019, FCHK
served over 36,000 beneficiaries with an aggregate value of over HKD 3 million
to the community.

FRISO® – growing up together naturally

FRISO^®,
a brand of one of the world's largest dairy companies FrieslandCampina,
provides a series of milk formula and supplements including infant and toddler
milk formula, pregnancy formula and milk cereal for the comprehensive nutrition
needs of pregnant women, infants and toddlers. FRISO^® has leveraged
FrieslandCampina's almost 150-year dairy expertise to ensure every step
flawlessly from dairy cows feeding in our own farms in the Netherlands to
product production, so as to offer pregnant women, infants and toddlers high
quality and nutritious dairy
products. We are committed to safeguarding the source of milk. In 2019,
FrieslandCampina has introduced FRISO^® TrackEasy^#, a
smart packaging innovation that enables consumers to access and trace the tin's
journey from the information of dairy farming, milk collection, production
process, packaging, rigorous checks to export by scanning a specific QR code on
the milk formula tin.

FRISO^®
products are now available in Mannings, Watsons, supermarkets and selected
pharmacies in Hong Kong. For more information please visit: www.friso.com.hk