Belgium's Dairy Market Overview

The dairy industry in Belgium plays a crucial role in the global market, characterized by strong demand and rising raw milk prices as of June 2023. Despite various challenges, the market demonstrates resilience and innovation.

Key Metrics

Belgium hosts a significant dairy cattle population of approximately 500,000, contributing to an annual milk production of around 4 billion liters. Of this, about 3.5 billion liters are processed each year, resulting in 1.2 million tons of cheese, 500,000 tons of milk powder, and 250,000 tons of whey produced annually.

Major Dairy Enterprises

The Belgian dairy sector is driven by key players such as FrieslandCampina, Milcobel, Lactalis, Danone, and Belgomilk. These companies are pivotal in processing and distributing dairy products both domestically and internationally.

Notable Dairy Farms

Belgium is home to notable dairy farms like Farm A, known for organic milk production, Farm B, specializing in high-quality cheese, and Farm C, which leads in sustainable dairy farming practices.

Export and Import of Dairy Products

Belgium exports dairy products worth approximately 2 billion euros annually, while imports account for around 1.5 billion euros. The country is a main supplier of dairy products to Indonesia and plays a significant role in the global dairy market.

Significant Events in the Belgian Dairy Industry

Recent events include Milcobel's divestment of its subsidiary Ysco to Davidson Kempner Capital Management and the installation of the first Lely Orbiter at Bart Vanderstraeten and Marijke d'Hertefelt's farm in Merchtem.

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 impact livestock production.

Resilience and Innovation

Despite these challenges, the Belgian dairy market remains resilient. The country's involvement in international initiatives, such as the collaboration between Arla and DMK Group, further solidifies its position. Belgium is also at the forefront of innovation in the dairy packaging market and participates in 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 experienced nearly 7% growth in dairy production, with a significant increase in cheese production. In 2025, cheese production surged by 24% compared to the five-year average, with Mozzarella leading the way. Fresh dairy production also showed substantial growth, reaching 731 million liters in total.

Economic Context and International Relations

Part of Minister Andrew Muir's trip to Belgium included discussions on sustainable farming practices and trade issues. Belgium is a primary supplier to Indonesia's dairy market, alongside New Zealand, Australia, and the United States.

European Initiatives and Health

The European Food Safety Authority (EFSA) monitors potential spill-over of the Bluetongue Virus into Europe, emphasizing proactive measures. Belgium is a member of the European Milk Forum, promoting dairy industry development across nine European countries.

Europe's Investment in Cheese Production

Europe is witnessing an increase in investments aimed at expanding cheese production capabilities, as part of a broader strategy to cater to rising demand for European cheese. Belgium recorded the strongest increase among the countries cited, with milk intake up 8.9%. Belgium's Laiterie des Ardennes increased its figure by €0.50 to €35.25 per 100kg due to improved fat and protein prices amid strong competition for milk. Cheese exports to Belgium increased by 1,000 tonnes, while butter exports fell by 1,800 tonnes. Belgium was among the top exporters of ice cream in the EU, accounting for 11% of the EU's extra-EU ice cream exports.

Commercial Availability of Products

The products Amberferm Grow 288 and 289 are commercially available in Europe, which includes Belgium. In Europe, including Belgium, cheese prices declined even with ongoing export demand.

Naturâne in Belgium uses milk from its own herd for the production of its cosmetic products. Belgium registered the largest monthly increase in milk prices. Belgium's milk price reached 42.50 euro cents per kilogram after a 12.34% rise. Belgium supplied major volumes to non-EU markets. Belgium was noted as a significant supplier of skimmed milk powder to non-EU markets. Belgium’s Those Vegan Cowboys is preparing a US commercial launch. Those Vegan Cowboys, based in Belgium, has added several bovine caseins for functional cheeses and nutritional products.