FrieslandCampina and Rabobank are set to boost local dairy farming in Indonesia and Vietnam through affordable finance
FrieslandCampina’s CEO Cees’t Hart said that the two organisations would support local dairy farmers by leveraging knowledge and expertise, and providing financing on relatively favourable terms.
The initiative involves an overall investment of US$30.1mn, of which FrieslandCampina will provide US$16mn, the Dutch dairy cooperative added.
The loans would be used to purchase cows, improve conditions in barns and fund biogas units.
According to the company, FrieslandCampina will buy the produced milk. The interest and loan repayments would then be deducted from the price paid for the milk, enabling the farmers to repay the loans in gradual stages.
Piet Moerland, Rabobank’s CEO, said, “Through the Rabobank Foundation and Rabo Development, we give farmers in developing countries access to financing. A partnership with FrieslandCampina is of immense added value for dairy farming in Indonesia and Vietnam.”
