Are we going too far in the number of milk flows?

We have a highly organized dairy column in the Netherlands, with a good logistics system. In the Netherlands we are also able to serve every market in the world and we also do that 'just in time'.

The latter is especially important for trade. In addition, Dutch dairy products are known for their very high quality, which is important in the context of food safety. These are important matters and together they form the distinctive character of the Dutch dairy column.

At the moment there is a clear emergence of different dairy flows. The organic milk flow is the best known form. This milk flow has been around the longest, has a specific target group in the market and is still growing. In addition, we see that recently there has also been an increase in the emergence of other dairy flows, such as VLOG milk, PlanetProof, the AH concept and Beter Leven.

Do not write off bulk flows 
In my view, this is a positive development, because the extra efforts of the dairy farmers are actually rewarded in the selling price. However, it depends on the individual situation whether you actually improve in income. In my opinion, a start has now been made, but this development will have to develop further before the additional yield of the dairy flow does sufficient justice to the extra efforts and costs of the dairy farmers.

We must, incidentally, be vigilant that it is not only about the specific dairy flows, nor should we think that (only) the future lies there. We often forget to look at the 'mainstream' of bulk processing, while the Netherlands is an important player in the global export market in that area. I therefore think that we should definitely keep a close eye on the further development and optimal marketing of this bulk flow. This is because in the Netherlands we certainly have something to gain in terms of the cost price level of bulk products compared to the rest of the world.

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Hans de Bie

Hans de Bie is market manager Food & Agri at Alfa Accountants and Adviseurs. De Bie is responsible for business advice to agricultural entrepreneurs. He is also a sustainability program director at Alfa.

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