'Every dairy farmer is welcome with us'

Growth ambitions in the Netherlands
Boot acknowledges that the hunt for the Dutch dairy farmer is intensifying now that the milk supply in our country is declining. "I expect the next five years will be interesting in that respect." Boot refers, among other things, to the nitrogen policy in our country, which may result in a restructuring of the dairy herd. On the other hand, the demand for dairy is growing worldwide. "I still notice that every day in the market." Arla also registered last October spoken out loud to be looking for new suppliers in our country. Arla is part of the Dutch Milk Foundation (DMF), but Arla wants to expand its own milk supply. The Scandinavian dairy cooperative now has about eighty Dutch members. Boot does not want to mention target figures for specific numbers of new members, except that every Dutch dairy farmer with pasture grazing is welcome as a cooperative member. From Limburg to above Nijkerk where the Arla factory is located. 

According to Boot, a dairy farmer is well off at Arla because it is a reliable and ambitious cooperative. "For us, the farmer's return is our number one priority. Arla is a winning company, in Dutch retail we have the second largest market share in dairy and our market share is growing every year." In one respect, Arla certainly distinguishes itself from other large dairy companies in the Netherlands: the cooperative does not have a top dairy line for a small group of members. Sustainability is a cooperative-wide process. Although Arla is fully committed to branded dairy products such as Arla and Melkunie, the bulk trade will continue to exist. "It is not either/or, but both/and. That will remain the case in the future. It is true that branded dairy products often provide more added value."

Green ambitions
Arla is a cooperative that wants to become more sustainable, as is also evident from the strategy published last October. That is important for the right to exist of dairy farming, says Boot. The cooperative has embraced the Paris climate agreement, which means that global warming may not exceed 1,5 degrees Celsius. Arla also wants to be climate neutral by 2050. According to Boot, every dairy company should have that objective. "Then dairy is no longer up for discussion, plain and simple." Boot hopes that the new cabinet will come up with a clear agricultural vision that will give the sector something to hold on to. According to Boot, the Netherlands is an ideal country for dairy production. "In addition to a favorable climate, the knowledge and infrastructure are available here. We must cherish that." The sector itself is also up to speed. "We need to scientifically map out our reductions using data. We are fully committed to this at Arla." Sharing data with the cooperative results in a plus on the milk price. Boot acknowledges that sustainability ambitions sometimes create tension with the owners.

'Most forecasts do not come true'
Boot thinks it is unfair that dairy is sometimes overlooked. “The nutritional value of dairy products is unparalleled, and we must continue to emphasize that as an industry.” However, to gain market share, dairy products must also be tasty and affordable, Boot knows from experience. It is currently a madhouse on the dairy market. Are the current high dairy prices here to stay? "I closely monitor market developments, including forecasts. However, my experience shows that many forecasts usually do not come true, because the market often takes unexpected turns." According to Boot, a price correction can be due to various causes. "What if China suddenly imports significantly less, or Fonterra starts exporting more actively? Or take the war between Russia and Ukraine. We must not forget that higher prices slow down dairy consumption in Asian countries. The cash factor on the dairy market is that there are many uncertain factors."

Co-author is Klaas Van der Horst.