EU dairy co-ops to merge

The FrieslandCampina and Milcobel boards have signed an agreement on the main points of the proposed merger; a proposal for discussion by farmer owners should be ready by the middle of this year.

The merger agreement will then be submitted for approval by the FrieslandCampina and Milcobel boards and for approval from relevant competition authorities.

Based on the combined 2023 annual figures of FrieslandCampina and Milcobel, the combined organisation will have revenues of over €14 billion, operate in 30 countries, employ nearly 22,000 staff worldwide, and process 10 billion kgMS of milk. This milk will be supplied by nearly 11,000 dairy farms owned by 16,000 member dairy farmers in the Netherlands, Belgium, Germany, and Northern France.

The two co-ops say joining forces creates a “leading dairy cooperative and dairy company”. “The merger of FrieslandCampina and Milcobel will create one international, future-oriented organisation that can seize opportunities and address challenges more effectively in the global dairy market,” they say.

“Both merger partners, owned by dairy farmers for many generations, complement each other well in market positions and product portfolios.

“The merger offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability.”

FrieslandCampina board chair Sybren Attema points out that the combination of FrieslandCampina and Milcobel is bigger than the sum of its parts.

“It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market,” says Attema. “This strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers.”

Milcobel chair Betty Eeckhaut notes that the cooperative philosophy, deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger.

“Our goal remains to create added value for our member dairy farmers. Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future.

“For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further ‘professionalisation’ of our services.”

Milcobel is owned by 1500 family dairy farms. It has six branches in Belgium and one in Northern France. In 2023, Milcobel had a turnover of €1.3 billion, had 1550 member companies, processed 1.3 billion kgMS, and 1600 employees. In addition to its own brands and private label cheese for large supermarket chains, Milcobel produces raw materials and ingredients for the food industry (including mozzarella, grated cheese, butter, cream).

FrieslandCampina is one of the largest dairy cooperatives in the world, with 9417 member dairy farms and 14,634 member dairy farmers in the Netherlands, Belgium and Germany.