Dutch Dairy Industry Overview

The Netherlands stands as a significant force in the global dairy market, renowned for its commitment to producing high-quality dairy products through innovation and efficient practices. The country plays a vital role in both the national economy and the global dairy landscape.

Dairy Cattle and Milk Production

The Dutch dairy industry is characterized by a robust infrastructure, with approximately 1.57 million dairy cattle producing around 14.3 billion liters of milk annually. This high level of production highlights the efficiency and scale of the sector.

Milk Processing

The Netherlands processes an estimated 13 billion liters of milk each year, reflecting a highly efficient processing sector capable of handling a significant portion of the produced milk. Cheese production is substantial, with about 909,000 tonnes produced annually, alongside 300,000 tonnes of milk powder and whey.

Key Enterprises in the Dairy Market

The industry is supported by major players such as FrieslandCampina, Royal A-ware, Vreugdenhil Dairy Foods, Farm Dairy, and DOC Kaas. Prominent dairy farms include Melkveehouderij Arie van den Berg, Dairy Farm Van Leeuwen, Runderkamp Dairy, De Wijde Blik, and Kaasboerderij Weenink.

Export and Import of Dairy Products

The Netherlands boasts a substantial export volume of dairy products valued at approximately 7.1 billion euros, while imports stand at around 3.5 billion euros, emphasizing its role as a net exporter. Notably, the Netherlands exports Gouda cheese to Chile.

Significant Events in the Dairy Market

Recent developments include the acquisition of Amalthea by Ausnutria Dairy Corp., indicating growth in the organic sector. The increase in raw milk prices to 47.75 euro cents per kg is influenced by global trends. Environmental policies targeting nitrogen emissions may impact livestock and milk production, while there has been a 13% drop in dairy exports to China.

Collaborations with Arla Foods and over 8,400 European farmers, including Dutch, have strengthened market positions. The introduction of the Milk Sustainability Center's free version for selected farmers enhances sustainability efforts. The end of the EU derogation for manure spreading has led to reduced herd sizes for some farmers.

Dutch cheese, such as the Kaamps Estate Pizza Gouda Wedge, continues to receive international acclaim. The passing of former Fonterra CEO Theo Spierings in the Netherlands is mourned by the industry. Willicroft's launch of plant-based fermented butter highlights innovation in dairy alternatives.

Despite a slight decrease in demand for high-protein whey, FrieslandCampina member farmers are showing continued innovation through new pilot projects. Concerns over free trade agreements have been raised by Spanish farmer Edu H. Nualart residing in the Netherlands. China has expanded anti-subsidy investigations, now including more Dutch programs.

The Netherlands remains resilient amid regulatory challenges, continuing to lead in quality and innovation. FrieslandCampina's collaboration with Bega Group in a bid for Fonterra's Australian operations reflects strategic market maneuvers. Albert Heijn's introduction of a new blend of dairy and plant milk products merges traditional taste with environmental benefits.

Innovation and Research

The Yili Innovation Center Europe, located in Wageningen, underscores the Netherlands' dedication to research and development in the dairy sector. The Dutch dairy industry continues to innovate in both traditional and alternative dairy products.

Future Outlook

In 2024, the number of dairy cows housed permanently indoors in the Netherlands surged by 12% compared to 2023, with an increase of over 50,000 cows. Over 20% of Dutch dairy farms now keep their cows exclusively indoors, with the total dairy cow population standing at 1.5 million.

ABN AMRO predicts rising prices for dairy and meat in the Netherlands due to shrinking livestock herds and supply disruptions. Dairy products like cheese, milk, and butter, alongside meat, are set to become more expensive in Dutch supermarkets as the national livestock herd is reduced. Government measures and buyout schemes are leading to the closure of numerous farms, disrupting the overall supply of dairy and meat in the country.

The escalation in the price of bola cheese is attributed to the rising costs of raw milk and production, alongside limited availability stemming from its primary import source, the Netherlands.

Modified: 2025/09/22