With the rapid developments in society, including in dairy farming, we believe it is important for our dairy farmers to be able to keep moving with the times and keep their farms future-proof. That is why we invest in sharing knowledge.
Why is this important to us?
We believe it is important for dairy farming to be a healthy and resilient sector. We do this by keeping our dairy farmers informed and optimising our collaboration with them. The world is constantly changing including in the dairy sector. As a result, our dairy farmers must stay informed of all relevant developments so that they can adjust their operations where necessary. This allows them to optimise their short- and long-term returns. A stable return is needed not only to generate a family income, but also to invest. This will future-proof the dairy farm and allow it to be passed on to the next generation.
What are the risks and opportunities?
The continuity of dairy farms is under pressure due to social and political developments. For Royal A-ware, it is important to have sufficient milk now and in the future. A number of factors play a role in this, such as farm succession, legislation, cost price development relative to milk price and profitability. Only a limited number of factors are directly influenced by us as a company.
Approach and policy
As a family business, we don't think in years, but rather in generations. This is also the starting point for our sustainability strategy. For us, sustainability means creating value across the entire supply chain, benefiting all parties, including independent dairy farmers who supply milk to Royal A-ware.
Working with dairy farmers
We work together with over 1,500 dairy farmers in the Netherlands and Belgium and believe it is important that we are aligned with them and do business together. We therefore value personal contact. Together, we are working towards more sustainable dairy farms, in terms of greenhouse gas reduction, animal welfare and biodiversity.
Based on customer requirements, we have developed different milk streams. Dairy farmers choose the milk stream that best suits their operations. This is how we connect customers to dairy farmers and build efficient and sustainable chains.
We enter into long-term partnerships with dairy farmers and set out agreements in an individual cooperation agreement. Thus, not only are dairy farmers guaranteed that their milk will be purchased by Royal A-ware for a longer period, but there is also security for ourselves. A cooperation agreement also ensures that it is clear what conditions must be met.
Dairy Academy
As the world is constantly evolving, it is essential for our dairy farmers to keep up with all these developments. To support them, we have established the Dairy Academy in the Netherlands and Belgium. Whether online or on-farm, dairy farmers can attend workshops and webinars, or participate in field trips and knowledge days on a variety of topics related to running a dairy farm. This gives them tools to optimise their business operations and expand in a future-proof manner.
Participation in Dairy Academy activities is voluntary and free of charge for all dairy farmers with whom Royal A-ware collaborates. Attending workshops may be a requirement within a milk stream. In addition, through participation in activities, dairy farmers can earn points for the A-ware Duurzaam sustainability premium. This, encourages their participation in activities. Dairy farmers receive updates on the programme through digital newsletters, our biannual meetings, websites and an annual magazine.
A-ware Duurzaam
A-ware Duurzaam (started in 2015) is a programme that values dairy farmers for their efforts to make their farms more sustainable. Dairy farmers who take measures on animal welfare, animal health and biodiversity that go beyond legislation, will receive a premium of 50 euro cents per 100 litres of milk.
We also appreciate dairy farmers who are open to supporting the community, for example by hosting a school class, maintaining a website or organising an open day. A-ware Sustainable is continuously being developed. All our dairy farmers in the Netherlands and Belgium participate in this.
Knowledge partners
In order to provide as much up-to-date knowledge and as many tools as possible, Dairy Academy cooperates with relevant knowledge partners. These are companies that are experts in their field. Each company focuses on a specific aspect of dairy farming, such as ration composition, financial management or animal health and welfare. The Dutch and Belgian Dairy Academies have different partners to ensure that the knowledge, language and tools are tailored to the respective country.
A list of partners is available on the websites below:
Dairy Academy Netherlands: www.dairy-academy.nl/
Dairy Academy Belgium: https://www.royal-aware.be/nl/dairy-academy.html
Responsibilities
Both the Dutch and Belgian Dairy Academy are managed by a manager who is responsible for the contact with knowledge partners and the organisation of the various activities in cooperation with the Dairy Academy team. Royal A-ware and the knowledge partners provide the financial resources to ensure free participation for our dairy farmers.
Objectives and achievements
Our goal is for the dairy farming sector to be future-proof, so that financially-sound farms can be passed on to future generations.
We aim for at least 75% of all dairy farmers we work with in the Netherlands and Belgium to participate in at least one Dairy Academy substantive activity each year. By this we mean workshops, webinars and knowledge sessions (the latter are currently available only in the Netherlands). This does not include the annual Dairy Academy Event.
As 2024 is the first report year, there is no comparison with previous years yet. The target was drawn up in cooperation with the Livestock Affairs Division Netherlands and Dairy Affairs Teams Belgium. Dairy farmers have not been actively involved in formulating the target themselves.
Most of our dairy farmers keep their expertise up to date through our Dairy Academy. Knowledge transfer is crucial for their entrepreneurship and professional skills, which is reflected in the high participation rate. Since the Dairy Academy has only recently been introduced in Belgium, along with its associated workshops and meetings, the target has not yet been fully achieved.
Measures and actions: how we achieve our goals
General measures
The Dairy Academy for our dairy farmers was launched in the Netherlands in 2014. A roll-out in Belgium followed at the end of 2022, as a direct result of the expansion of business activities into Belgium and the active recruitment of Belgian dairy farmers. Like the Dutch version of the Dairy Academy, the Belgian counterpart is focused on responding to the specific situation and needs of Belgian dairy farmers.
Programme Evaluation
Input for Dairy Academy's programme of activities comes from dairy farmers (e.g. through the focus group of dairy farmers), the Livestock Affairs Division Netherlands, Dairy Affairs Team Belgium, Dairy Academy knowledge partners, Dairy Academy management and the ESG team. Each workshop is assessed by the participating dairy farmers through an evaluation form, on which they can indicate which topic they would like to see included in the programme. We adapt the programme annually by responding not only to the needs of dairy farmers but also to current challenges. We do this together with our knowledge partners, the focus group of dairy farmers and the Livestock Affairs Division Netherlands and Dairy Affairs Team Belgium. We also focus on issues that are important for the realisation of our sustainability strategy.
Mutual cooperation
To give dairy farmers the opportunity to build relationships and network, Dairy Academy organises an annual event in an informal setting. This strengthens cooperation during regular workshops, promoting mutual sharing of personal experiences and seeking advice from each other.
Dairy Academy as a prerequisite in milk streams
We have different milk streams. In doing so, we respond to specific customer requirements. Dairy farmers choose whether to participate in a particular milk stream. Each milk stream has its own conditions in areas such as animal welfare and climate. Mandatory participation in one or more Dairy Academy activities may also be a condition. Because, like ourselves, customers appreciate that dairy farmers keep their knowledge and skills up-to-date. This contributes to resilient dairy farming and also supports customers' ambitions to reduce their carbon footprint or improve animal welfare. Dairy farmers who participate in a milk stream receive an extra premium for efforts required of them, which always go beyond the requirements of legislation.
Sharing information
Twice a year, we organise a meeting for dairy farmers. During this meeting, we will inform dairy farmers about Royal A-ware's performance and market developments, among other things. A regular agenda item during these meetings is an explanation of the Dairy Academy's activities. About three-quarters of our dairy farmers attend these meetings. In addition, the activities are mentioned in digital newsletters and magazines/brochures, such as the Workshop Special in Belgium and the Dairy Academy Magazine in the Netherlands. Special websites allow dairy farmers to log in themselves: www.mijnroyal-aware.nl and www.mijnroyal-aware.be.
Our actions in 2024
In the Netherlands, we have organised almost 90 activities for dairy farmers through our Dairy Academy. Activities ranged from knowledge days and webinars to workshops on topics such as herb-rich pastures, udder health, soil and crops, high-base rations, and robotic milking.
In Belgium, through the Dairy Academy, we organised 30 activities for dairy farmers, including workshops on animal health, calf rearing and the introduction of the Footprint premium.
How do we engage our stakeholders?
Focus group
To gain insight into the views and practical experiences of dairy farmers, we set up a focus group in both the Netherlands and Belgium. A group of dairy farmers who meet regularly with management and the Livestock Affairs department to discuss developments, give input and advice on decisions to be taken. This could include current events in the sector, changes in supply conditions or developments in milk streams. For example, we think it is important to hear whether the conditions we set for a milk stream are workable for the dairy farmer.
The focus group meets online at least once a month. Physical meetings take place as often as necessary, but at least four times a year. The participants in the focus group are a reflection of the total group of dairy farmers in both size, milk stream, business operations and region. Because every region is represented, we stay close to what is going on at the regional level.
Responsibilities
In the Netherlands, the COO is responsible for organising the meetings with the focus group and preparing their content. In Belgium, this is the Dairy Affairs Manager. They should also ensure that the focus group is involved at appropriate times to seek advice and input. The Manager Livestock Affairs Netherlands and the Dairy Affairs Manager Belgium are responsible for evaluating the impact of Dairy Academy activities.
Interest groups
We are affiliated to several industry organisations, such as BCZ, NZO and ZuivelNL. Through these organisations, as well as directly, we are in dialogue with various interest groups of dairy farmers.
Other information
We have not defined any specific vulnerable groups in our value chain. The terms of delivery for dairy farmers include where they can report complaints. In addition, the external complaints scheme is also open to dairy farmers.