Belgian dairy industry struggling with low profitability

Nevertheless, Belgian dairy companies achieved a turnover of €7,3 billion, thanks to high dairy prices, increasing home consumption of dairy and good exports. They also paid the farmers an average milk price of €49,62 per 100 liters of milk, which is 9% more than in 2023. This was at the expense of the average profitability of the industry. That is why the BCZ calls for recognition of the strategic role of dairy processors, according to director Lien Callewaert.

The dairy industry is currently undergoing major changes, due to various takeovers and mergers. However, Callewaert believes that this does little to change the strategic role of the Belgian dairy industry.

The Belgian dairy sector exports a large part of its production each year, but also imports a significant volume. Last year, €4,97 billion worth of dairy products were imported, the same as the year before, while €5,5 billion was exported. That is 1% less than in 2023. The trade surplus amounted to €527 million. That is 9% less than in 2023.

Although the industry was struggling and investments were also falling, €178 million was still allocated to modernisation and capacity expansion.

Dairy farmers face legal uncertainties
The BCZ is not only advocating for itself, but is also asking for attention for the position of dairy farmers in Belgium. Although they received a solid milk price last year, they are still struggling, according to the dairy association, mainly due to legal uncertainties and problems with the continuation of their businesses. The decreased milk supply is one of the signs of this, even though the supply only decreased by 1% to 4,35 billion litres.