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3/17/2015

5

Farmers are rewarded based on the

quality and safety of their milk

Every milk delivery is tested and farmers

are paid according to composition, safety

and quality…

… leading to improvement of quality and safety

metrics over time

EXAMPLE

Frequency Parameter

Every delivery

Temperature and color

Fat, protein, lactose,

urea

Antibiotics

Free fatty acids

Freezing point

Somatic cell count

2x per month

Bacterial count

Penalized deliveries, %

2x per year

Chloroform

1x per month

Butyric acid spores

Sediment

Testing is done by independent

laboratory (Qlip) under supervision of

government

Quality standards at factory level to

maintain good quality product

FrieslandCampina FSSC 22000 based

Quality manual applicable to all

,

manufacturing sites

Fonterra Safety &

Quality Policy