Dutch butter production lowest since 2009

In June, the Netherlands produced almost 9.000 tons of butter. In July, production was only 6.601 tons. In the following months, production stabilized around that level. The last time volumes were this low was in the summer of 2009.

'Closure of Den Bosch plays no role'
The decline could be explained by FrieslandCampina closing its butter factory in 's-Hertogenbosch in July. Inquiries revealed that the dairy cooperative has moved its butter production to Lochem and that this has no impact on the market. For competitive reasons, FrieslandCampina does not share production figures, but according to the spokesperson, production from 's-Hertogenbosch has shifted almost exactly to Lochem, where a new butter production line has been built.

Cheese production higher
The decline in butter production is not due to less milk to process. In fact, milk production In the Netherlands, production has actually increased rapidly since July. A large portion of the additional supply has gone into cheese production. In June, cheese production was almost 4% below last year's level; a month later, production volume was 1,34% higher. In the following months, the lead has further expanded.

Also more skimmed milk powder
Skimmed milk powder production also increased, reaching 6.606 tons in August, a full 22% above last year's level (though it did decline again in September). This is expected to be reflected in the production of cream and butter. Looking purely at butter, something is missing. 

The decline in Dutch butter production is also out of step with the European trend. Since July, butter production in the Eurozone has rapidly increased by 4,41% to 176.000 tons in September.