Belgium's Dairy Market Overview
The Belgian dairy market is a dynamic and significant component of both the domestic and international dairy sectors. As of June 2023, the market has seen a notable increase in raw milk prices, indicative of heightened demand and robust performance.
Key Metrics
Belgium supports approximately 500,000 dairy cattle, with an annual production of around 4 billion liters of milk. Of this, approximately 3.5 billion liters are processed each year. Cheese production stands at an estimated 1.2 million tons, alongside 500,000 tons of milk powder and 250,000 tons of whey produced annually.
Major Dairy Enterprises
Several significant dairy enterprises operate within Belgium. These include FrieslandCampina, Milcobel, Lactalis, Danone, and Belgomilk. These companies play crucial roles in processing and distributing dairy products both locally and internationally.
Notable Dairy Farms
Belgium is home to notable dairy farms such as Farm A, known for organic milk production; Farm B, specializing in high-quality cheese; and Farm C, a pioneer in sustainable dairy farming practices.
Export and Import of Dairy Products
Belgium exports approximately 2 billion euros worth of dairy products annually, while imports reach around 1.5 billion euros. This trade balance underscores Belgium's significant role in the global dairy market.
Significant Events in the Belgian Dairy Industry
Recent developments include Milcobel's strategic divestment of its subsidiary Ysco to Davidson Kempner Capital Management, expected to impact the industry. Additionally, the installation of the first Lely Orbiter at Bart Vanderstraeten and Marijke d'Hertefelt's farm in Merchtem marks a significant technological advancement.
Challenges
The Bluetongue Virus (BTV-3) poses ongoing threats to livestock health and fertility, contributing to a 3.9% decline in milk production. Regulatory pressures to reduce farm emissions may also affect livestock production.
Resilience and Innovation
Despite these challenges, Belgium's dairy market remains resilient and influential on the global stage. The country's involvement in international initiatives, such as the new Arla and DMK Group entity, further solidifies its position.
International Cooperation
An ICOS delegation is engaged with European Commission officials to address compliance requirements for Ireland's dairy industry, highlighting Belgium's active role in European dairy discussions.
European Milk Forum
Belgium is a member of the European Milk Forum, which spans nine European countries, promoting dairy industry development.
Health and Safety
The European Food Safety Authority (EFSA) is monitoring potential spill-over of the Bluetongue Virus into Europe, emphasizing the need for proactive measures.
Innovation in Packaging
Belgium is at the forefront of innovation in the dairy packaging market and is involved in the European Dairy Futures contracts.
Sustainability Initiatives
Milcobel, a major Belgian dairy cooperative, is collaborating on transforming dairy byproducts into sustainable palm oil alternatives. A new center focusing on mid-sized farms is planned to open in Belgium in 2025 in partnership with Wageningen University.
Production Growth
Belgium has seen nearly 7% growth in dairy production. Recent data indicates that Belgium, along with the Netherlands, has experienced a significant increase in dairy production compared to Ireland.
Ownership of Lactalis
The Besnier family owns Lactalis through Belgium-based BSA International.
Major Dairy Player in the EU
Belgian processor Milcobel has announced merger plans with Dutch processor FrieslandCampina. Members of FrieslandCampina and Milcobel approved the merger, which is being formalized by January 1, 2026.
Economic Context
Belgium's economic stabilization may not translate into increased consumer spending. The EU, which includes Belgium, announced retaliatory trade measures against the US worth €26 billion, including agricultural products from poultry to dairy.
Product Innovation
The Alpro Meal To Go drinks are available in Belgium. Danone has introduced a new range of plant-based meal-replacement drinks under its Alpro brand in select European markets, including Belgium.
Modified: 2026/02/11