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

HONGKONG, CHINA - Media OutReach -5 August 2020 - As one of theworld's leading and largest dairy cooperatives with almost 150 years of Dutch dairyheritage and expertise, FrieslandCampinais committed to providing better nutrition for the world while ensuring a good livingfor the farmers and creating a sustainable natural environment for now and forgenerations to come. In response to the rising consumer demand for organicproducts, the company announced the launch of a newultra-premium organic milk formula Organic FRISO PRESTIGE^® BIOglobally, with Hong Kong chosen as the first market.

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

The new Organic FRISO PRESTIGE^® BIO iscrafted from the natural richness of organic farms which are full of diversityand life, enabling to achieve around 50 varieties of living things commonlyseen in the Netherlands.

OrganicFRISO PRESTIGE^® BIO is now traceable on TrackEasy^#, anindustry-first smart packaging innovation that enables consumers to trace everystep in the process; from milk collection in FrieslandCampina's Dutch ownfarms, through packaging, final quality checks, export permissions and all theway to the date of arrival, thus giving consumers peace of mind.

Organicmilk formula growing strong

In recent years, the demand fororganic products has been gaining popularity as consumers increasingly considerthe health and environmental consequences of their food choices. Globally, 20%of people look for an organic statement when buying a product with 36% saying thisinfluences their purchasing behaviours[1].​Of all the food categories,the Baby & Toddler category has shown the strongest growth (18%) in organicproduct 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]. Organicmilk formula experienced the highest growth, increasing 30% in value to reachEUR 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.​ Organicmilk formula has led the category growth in the last 3 years, accounting for 6%of the category value[4].

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

Mr.Berndt Kodden, President FrieslandCampina Specialised Nutrition said "Organic solutions are crucial, but it isnever easy to develop organic products and meet the stringent requirements of ourunique from grass to glass process. Massive efforts have been contributed toensure that our dairy farms and production plants are organically certified."Empowered by its unique control from grass to glass, FrieslandCampina is ableto ensure the highest quality and safety standards throughout the entire globalsupply chain, from its own organic dairy farms right through to consumer distribution.Each step between milking the cows, guaranteeing quality in factories anddelivering products to the supermarkets is managed and controlled byFrieslandCampina.

Leading the Dutch standardof organic dairy farming

40 years ago, FrieslandCampina memberfarmers started pioneering organic dairy farming in the Netherlands. Among morethan 11,400 FrieslandCampina member dairy farms, 150 are dedicated to organicdairy farming, where the rich organic milk is produced. PierSwierstra, the 4^th generation member farmer of FrieslandCampina whose farm has been certifiedas organic since 2012, said "For generations, my family has been committed to workingclosely with nature. We practise organic farming so that we pass on only thebest things to the next generation. We work hard every day to maintain ahealthy and biodiverse ecosystem to nurture strong and healthy cows thatproduce natural and nutritious organic milk."

At FrieslandCampina's organic farms,dairy cows enjoy a minimum living area of 6 sq. m. per head and permanentaccess to open air grazing areas, ifweather conditions permit. Farmers give their dairy cows 100% organic feeds. Anypreventive use of antibiotics, hormones, mineral nitrogen fertilisers or growthenhancers is strictly prohibited. On top of adhering to the EU's organiccertification standards, all these organic farms choose to comply with the Aanvullende Normen, additional stringentrequirements initiated by Dutch organic farmers themselves to guarantee the highstandard for ecological dairy farming with an extra focus on animal welfare,use of medicines, outdoor grazing and biodiversity.

Dr. MarchelGorselink, Director Development FrieslandCampina Specialised Nutrition, said "With Aanvullende Normen, a minimum 5% of landmust be in its natural state, meaning that 5% of the land use must be undernature conservation. This has contributed to a healthy ecosystem with richbiodiversity at FrieslandCampina's organic dairy farms, enabling to achieve around50 varieties of living things[5]."According to Dr. Gorselink, the new OrganicFRISO PRESTIGE^® BIO is crafted from the natural richness of organicfarms which are full of diversity and life. For example, dandelions, a commonplant on Dutch protein-rich grasslands, supply dairy cows with calcium which isimportant for milk production.

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

Collaborating with WNF andRabobank 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 potentiallyhave a tremendous influence on the biodiversity on their farms and in the surroundingnature reserves. Aiming to be a driver of sustainable dairy farming for thebroader industry, we have joined forces with the World Wide Fund for Nature'sNetherlands office (WNF) and Rabobank to create the Biodiversity Monitor. It isa comprehensive methodology to measure a dairy farm's influence onbiodiversity, making it possible to quantify results to help improvebiodiversity in agriculture and reward dairy farmers through supply chainpartners and other stakeholders."

Biodiversity Monitor sets out 7 KeyPerformance Indicators (KPIs) that align with the guidelines of the Food andAgriculture Organization of the United Nations' Livestock EnvironmentalAssessment 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 ownfarmland used for protein production; 5) share of permanent grassland; 6) shareof nature and landscape; 7) share of multifunctional grassland, which canincrease positive impacts on biodiversity.

At FrieslandCampina, all member dairyfarms implement Biodiversity Monitor. It has been incorporated into FrieslandCampina'sextensive monitoring programme "FoqusPlanet" so member farmers can know their farm emissions data, shareknowledge, measure actions and monitor the climate. In order to achieve thetarget of being carbon neutral by 2050, an array ofsustainabilityinitiatives have been implemented, resulting in milestone achievements. Forexample:

          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 theonly dairy company in the world to provide large scale complete and crediblegreenhouse gas emissions data.

       iv.      In2019, greenhouse gas emissions from production and transport byFrieslandCampina reduced by around 10%.

        v.      Over2,500 member dairy farmers have installed solar panels, windmills andmono-manure digesters, producing enough green electricity to supplyapproximately 200,000 households.

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

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

As outline by Food and AgriculturalOrganisation of the United Nations (FAO), consumers need access to timely,clear, reliable information to make good food choices with the risingcomplexity of food safety. According to a recent survey conducted byindependent 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 concernedabout. Before the purchase, they spend an average of 3 hours conductingresearch on milk formula. The top 3 kinds of information that mums want totrace in detail include quality check during production (71%) and food source(63%), production environment (65%) and how the product is made (63%). Mumswant brands to be more transparent about their food sources (97%) andproduction process (96%), enabling them to make better choices.

Mr. BerndtKodden, PresidentFrieslandCampina Specialised Nutrition, said "To strengthen parents' trustand empower them in making more informed milk formula purchasing decisions,FRISO^® TrackEasy^# has been launched as an industry-firstsmart packaging innovation that enables consumers to access and trace the fullycontrolled Dutch supply chain process. By scanning a QR code specific to eachbatch of milk formula tins, including the newly launched Organic FRISO PRESTIGE^®BIO product range, consumers can trace every step in the process; from milk collectionin FrieslandCampina's own farms in the Netherlands, through packaging,final quality checks, export permissions and all the way to the date ofarrival, 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 ofFrieslandCampina (Hong Kong) Limited, said "As well as putting extra emphasison the scientific benefits of our products in maintaining a good immune system,we also focus on our innovative TrackEasy^# to address consumers' concernson food safety and traceability. In 2020, the average number of monthlyTrackEasy^# scans nearly doubled as compared to last year. Despitethe quick and easy access to information on the system, consumers are spendingmore time on each page with a 0% bounce rate, showing their intentions to lookfor solid evidences to ensure the safety and quality along our from grass toglass production process."

The pandemic has changed not only theway 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 -- 9months before the pandemic and over one third would shop less often at groceryand convenience stores. Such behaviour is expected to continue for 2 -- 6months. Ms. He said, "In view of the changing consumer behaviours duringthe pandemic, we have been swift in gearing up and expanding our marketinginitiatives to reach our target consumers and stakeholders through online,social media and e-commerce channels. On top of our FRISO^® Easyordere-shop and dedicated online promotions with major e-commerce platforms, we arethe first milk formula brand in Hong Kong to leverage chatbot technology inconducting pre-natal classes and digitalise our engagement with healthcarepractitioners."

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

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

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

Breastfeedingprovides 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 inHong Kong since 1938. Building on FrieslandCampina's almost 150 yearsof Dutch dairy heritage and expertise, the from grass to glass stringent globalsupply chain and constant innovation that unlocks the nutritional potential of milk, FCHK has been leading thedevelopment of dairy industry in Hong Kong, nourishing the lives of HongKong people across all ages with its full range of high quality and nutritious dairy products, including FRISO^® milkpowder for pregnant and lactating women, infant and toddler milkformula, DUTCH LADY^® dairy based beverages, BLACK & WHITE^® and LONGEVITY^® dairy products, andOPTIMEL^® adultnutrition formula for consumers, customers and food service business partnersthrough a wide network in both retail and business channels inHong Kong and Macau.

AsHong Kong people's partner in health, FCHK supports local food banks andcharity groups and provides food assistance to people in need. In 2019, FCHKserved over 36,000 beneficiaries with an aggregate value of over HKD 3 millionto 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 toddlermilk formula, pregnancy formula and milk cereal for the comprehensive nutritionneeds of pregnant women, infants and toddlers. FRISO^® has leveragedFrieslandCampina's almost 150-year dairy expertise to ensure every stepflawlessly from dairy cows feeding in our own farms in the Netherlands toproduct production, so as to offer pregnant women, infants and toddlers highquality and nutritious dairyproducts. We are committed to safeguarding the source of milk. In 2019,FrieslandCampina has introduced FRISO^® TrackEasy^#, asmart packaging innovation that enables consumers to access and trace the tin'sjourney from the information of dairy farming, milk collection, productionprocess, packaging, rigorous checks to export by scanning a specific QR code onthe milk formula tin.

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