'Consolidation battle on the cheese market not over yet'

De takeover van DupontCheese, which is still owned by the Belgian dairy cooperative Milcobel, is a strategic move by Vandersterre Groep Bedrijven. "The cheese market is currently showing consolidation. When you get an opportunity to grow, you have to grab it," says Jan Kos, CEO of Vandersterre.

What made DupontCheese interesting for you?
"DupontCheese specializes in buying and selling foreign cheeses. The company also carries a number of Dutch cheeses (such as Cono's SmaaQ cheese and organic cheese De Terscherschellinger), and there is an intensive collaboration with Klaver Kaas. That is what we are at the heart of. Vandersterre meet. Dutch cheeses are a nice addition to our range of 17.000 different products. The trade in foreign cheeses is relatively new for us, but also interesting for our customers. We already export to 85 countries. Moreover, the acquisition brings us closer to Milcobel ."

Were there more hijackers on the coast?
"Yes, there were more takeover candidates. We are happy that we finally found the best match. For us, this is also a strategic move to intensify the cooperation with Milcobel and to acquire a stronger position in the market for foreign cheeses. The transition process that preceded this takeover took six months to one year. If the Netherlands Authority for Consumers & Markets (ACM) approves the takeover, the transition process will follow."

What does the acquisition mean for the Dutch cheese market?
"The cheese market is consolidating. There is a densification in the cheese trade, a process that has been going on for 20 to 30 years. This process is caused by economies of scale at the bottom of the chain (to counterbalance the more powerful supermarket channel). "Development affects the middlemen. The remaining 90 cheese traders are getting bigger and bigger. I think that consolidation battle is not over yet. It means that you have to remain vigilant. If you get the opportunity to grow, you have to grab it."

What will the dairy farmer notice from the takeover?
"Trade in foreign cheeses is mainly a European matter and the Dutch cheeses from DupontCheese are cheeses with a higher added value. This is not about mass volumes, so the Dutch dairy farmer will hardly notice."

Is specializing in artisanal and authentic cheeses a trend in the cheese trade?
"I see a dichotomy emerging in the market. On the one hand, we have larger bulk producers, who are producing on an increasingly large scale at a low cost price. On the other hand, more local initiatives are emerging, especially smaller cheese producers that target a niche market through special flavors and models. Over the years, these companies usually look for a trading partner to be able to reach a larger market.The changing consumer also keeps the cheese trade busy, because it demands more and more variation in taste, packaging and volume."

How is global cheese sales developing?
"The Netherlands and Germany remain very important cheese markets, together soon accounting for about 66% of sales. About half of the rest goes to France and Belgium. The few percent growth in those markets therefore has much more influence than growth in the so-called It would be interesting if we regained the Russian market, because 60.000 tons of Dutch cheese went there before the country closed its borders in 2014. The little export to Thailand does not compensate for that."

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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