A special beer or a normal glass of milk?

Special beer is hot. Beer drinkers in the Netherlands are increasingly opting for special beer instead of regular lager, according to various studies. In addition, specialty beer is increasingly appearing on the menus of restaurants and supermarkets are creating plenty of space for it on the shelves.

Sales of specialty beer in supermarkets increased by 2018% in 10. What is the secret of this success? Beer drinkers seem to opt for quality rather than quantity: taste wins out over volume. As a result, the beer landscape has been shaken up considerably in recent years and 'ordinary lager' is increasingly disappearing into the background.

New milk flows
New milk flows are also hot. The dairy shelf in the supermarket is becoming increasingly diverse. Virtually every milk processor in the Netherlands focuses on new milk flows. The focus is on distinctiveness, in order to create added value. Unlike special beer, milk is not so much about taste, but above all about sustainability aspects and origin. What does this development mean for dairy farmers?

In any case, it means that dairy farmers have to make more choices: do I qualify for PlanetProof, does outdoor grazing and/or VLOG suit my company, do I focus on an (organic) regional product, or do I produce 'bulk'? In my view, the latter is not synonymous with 'not choosing', but can actually be a conscious choice. The premiums earned from the special milk flows can also remain at the bottom of the line by being keen on the cost price.

Deals
However, about 90% of beer consumption in the Netherlands is still 'normal lager'. The case of beer on sale is still the most sold. This is probably no different with dairy. After all, consumers remain sensitive to the price. In addition, a large part of the milk is processed into commodities such as cheese and milk powder, which are sold on the world market. If Dutch dairy exports are to be competitive, a competitive cost price is indispensable. Otherwise, our dairy exports will price themselves out of the market.

The emergence of new milk flows is forcing dairy farmers to think about their sales. Am I going to produce for the home market, or am I structuring my production process for the global market? In other words: do I focus on added value, or do I focus on the cost price. In beer terms: do I choose a Heineken or a La Chouffe?

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Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness and Food Business. He also closely follows the raw materials markets and focuses on animal proteins such as dairy and meat. He regularly interviews leaders from the agricultural sector and the food world.

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