A-ware maintains its growth trajectory even in a difficult market

Last year, many new dairy farmers were hired, an expansion is planned in Heerenveen, and the company still sells more dairy than it receives from its own farmers, say he and his right-hand man, livestock manager Koen Veldman.

It sounds pretty cool. Will you still be hiring farmers, or will you be taking things a bit easier?
Koen Veldman: "We've welcomed many new dairy farmers this year, and we're proud of that. We now work with over 1.700 dairy farmers, and we've noticed that younger farmers in particular have joined us this year. Dairy farmers can choose from various milk streams. There are currently six, and there's always one that suits your business. The fact that we pay milk twice a month also helps. The premiums that can be earned are realistic and achievable for almost all of our dairy farmers."

How much milk goes into value-added streams?
About 80% of our milk goes into streams that attract substantial premiums. The best-known are Cow Aware (€4 per 100 kilos) and Better for (€6). The latter milk stream also receives a pasture premium of €1,25.

Last year, you were once again among the top performers in terms of base milk prices. What are your expectations for 2026?
Klaas de Jong: "As a family business, we don't think in terms of years, but in terms of generations. Every day, we strive for the best possible result to be able to pay the highest possible milk price. What you see this year: the differences between them are – with a few exceptions – very small and smaller than ever. Overall, it's been a good year for dairy farmers. Looking ahead to next year, things don't look so positive. Still, in tougher markets, A-ware always pays out relatively better, and our dairy farmers know that too, because that's when cash flow on the farm matters. It's great that we can do just that little bit more with our milk flows, because that's precisely when it's needed."

Structurally, in the long term, there's more competition for milk. Dairy producers are adjusting their terms to attract additional farmers. Some cooperatives are temporarily waiving farmers' contributions to supply. What's your take on this?
"If a fight breaks out over milk, that's good news for dairy farmers. The trick is always to connect with dairy farmers and then retain them. Working with us has never required a risky capital investment. Not now, and not in the future. This leaves dairy farmers with money to invest in their own businesses, for example, or to make other choices."

If there's one party in the Netherlands that's been pulling on milk since 2014, it's us. And we'll continue to do so. We want to keep milk with us for the long term. This year, we welcomed many young dairy farmers who want to continue growing. I think that's great. This naturally increases our share of the Dutch milk pool. Ultimately, it's about trust; it also demands something from us. We have to ensure that we pay a good milk price and remain a stable, financially sound company.

You have also adjusted the conditions slightly
The dairy market is highly volatile, and the playing field is constantly changing due to mergers and acquisitions. Because we determine the milk price in advance, it's more difficult to accurately estimate it. That's why we introduced our annual bonus, so we can top up later if necessary.

Are there any expansion plans or new developments in the pipeline?Koen Veldman: "We are flexible and can respond quickly to market opportunities. We are and will remain a demand-driven company in the supply chain and are now active in more than 100 countries. That's why we are expanding our production capacity in Heerenveen in 2026 and will be more actively pursuing organic milk. Organic is a new priority. We see opportunities there and are developing a plan that is a good fit for the Dutch organic farmer."

When exactly will this expansion start, and how much will be added?
"We will provide further information about this later this year."

Royal A-ware is becoming more international and larger. How do you ensure you maintain ties with the farm?
Klaas de Jong: "We like to involve dairy farmers in decisions and believe it's important to be on the same page with them. That's why we work with a sounding board group of 13 dairy farmers, with whom we meet monthly to coordinate our milk prices. We also share our views in meetings and are open to input. We seek advice on upcoming decisions and share information about price developments and delivery terms."

Koen Veldman: "Every dairy farmer and milk stream is equally important to us. These 13 dairy farmers represent the various milk streams and are, so to speak, their voice. All the dairy farmers we work with also have a dedicated contact person who visits them regularly and knows what's going on on the farm. Personal contact is very important to us."

That's all well and good, but there are also dark clouds. What's your take on what's happening in politics?
Klaas de Jong: "Our governments are letting us down. There's no clear-cut vision, and decisions are still not being made based on the right facts. This still irritates me immensely. Based on the right facts, dairy farming would look very different. It's a shame! It's now difficult for entrepreneurs to manage, and that's what worries us. I find it appalling to see how they treat both farmers and other businesses in The Hague."

"If you look at the Wennink report, it only looks at technology and not at the origin of our food... People must be able to continue eating. Food security is essential, especially now and in the future. We could be a little more frugal and proud of our farmers."

Koen Veldman: "When it comes to quality, efficiency, sustainability, entrepreneurship, knowledge, and expertise, we're in the right place here in the Netherlands and Belgium. This is partly due to the best and most fertile soil in the world. Dairy farmers are enterprising and flexible. If there's a goal on the horizon, they know how to get there."

How do you see the future?
Klaas de Jong: "Right now, there's more milk than the market can handle. The cause is well known. The euro-dollar exchange rate, a growing spring, cheaper feed prices, and thus a changing playing field globally. The shift in milk production to winter due to bluetongue also took the dairy market by surprise. We're in the midst of that now. We already indicated during our autumn meetings that bad weather was on the way, but we didn't expect it to be this bad... On the other hand, what goes down quickly can also go up quickly. When that moment will arrive is still difficult to predict."

Koen Veldman: "The motto now is to look further ahead. As dairy farmers and Royal A-ware, we are all family businesses. We must and can get through this together. The good news is that dairy consumption is growing worldwide. In the long run, this will ensure good prices and a sound business model. Unfortunately, many things are currently going against the market simultaneously."

Klaas de Jong: "Because we sell more than we produce ourselves, we're able to absorb all the milk offered and maximize its value. We've now built up a wide range of dairy products, all based on cheese. Besides cheese, we're increasingly developing whipped cream, quark, protein drinks, and mozzarella balls for foodservice and retail."