Winners and losers in the Dutch dairy market

Due to the lower milk supply, roughly 300 million kilos less milk went to the factory. In addition, it is estimated that between 300 and 350 million kilos of milk have moved from one processor to another. That's quite a lot by Dutch standards.

Most of the milk went to FrieslandCampina. It was reported at the beginning of October that almost 240 members are leaving, taking with them 272 million kilos of milk. A number of suppliers also left Leerdammer, although Leerdammer does not make any statements about the number. Suppliers talk about around 20 million kilos of milk going to other processors.

Dissatisfaction driving factor
It is remarkable that dissatisfaction with mutual relations appears to play a leading role in the loss of members/suppliers at both companies. At FrieslandCampina, the effect of the delivery certificates is added to this. However, the appointment of a new chairman seems to have brought some additional peace for the time being. At Leerdammer, the arrival of a new owner has not brought about any positive changes in relations, suppliers report. 

Four other parties benefited from the unrest at the above-mentioned companies. Royal A-ware once again attracted the most switches this year, helped by a new extension of Albert Heijn's 'Better for' program. The extra 5, or in some cases 3 cents, that this program yields is money that many livestock farmers are reluctant to pass up.

Freer business development is appealing
The fact that no deposit is required and the ability to develop more freely as an entrepreneur is also appealing. With this, and with a competitive milk price, Vreugdenhil Dairy Foods is also attracting a large group of new suppliers. More than 100 million kilos of extra milk has already been acquired by the end of this year. Next year the counter should increase another 50 million kilos.

The third winner on the dairy market is DOC Kaas, the cooperative that for years saw only members and milk disappear. Switchers mainly come from FrieslandCampina. They bring about 50 million kilos of milk. 

Share German DOC members to DMK
In Germany, where DOC Kaas also has a group of members, some of them may leave for the large sister cooperative DMK. During the district meeting in Germany, DOC Kaas presented a proposal to offer German members the option of switching as of January 1. This switch is voluntary. In recent years, DOC Kaas has aligned its delivery conditions in Germany with those of DMK in various respects. As a result, or despite this, it may be more attractive for individual members to supply milk to and become a member of DMK, DOC reports. According to the cooperative, the proposal has been well received and a number are considering it.

Dairy trader and processor Farmel can also count itself among the winners. The company in Emmeloord is growing steadily and this also includes an expanding number of dairy farmers. Farmel does not have its own milk price. Most members receive a milk price based on FrieslandCampina's guaranteed price, but without the additional payment.