The Dutch Dairy Industry

The Netherlands stands as a formidable force in the global dairy market, renowned for its commitment to producing high-quality dairy products through innovative and efficient practices in both dairy farming and processing. This sector is vital to the national economy and holds a significant place in the global dairy landscape.

Dairy Cattle and Milk Production

The Dutch dairy industry is home to approximately 1.57 million dairy cattle, contributing to an impressive annual milk production of about 14.3 billion liters. This highlights the efficiency and scale of the sector.

Milk Processing

The Netherlands processes an estimated 13 billion liters of milk each year. This processing capability is reflected in substantial production figures, with cheese production reaching approximately 909,000 tonnes annually, alongside 300,000 tonnes of milk powder and whey.

Key Enterprises in the Dairy Market

Several major companies underpin the Dutch dairy industry, including FrieslandCampina, Royal A-ware, Vreugdenhil Dairy Foods, Farm Dairy, and DOC Kaas. Additionally, prominent dairy farms such as Melkveehouderij Arie van den Berg, Dairy Farm Van Leeuwen, Runderkamp Dairy, De Wijde Blik, and Kaasboerderij Weenink play significant roles in the market.

Export and Import of Dairy Products

The Netherlands is a net exporter of dairy products, with an export value of approximately 7.1 billion euros compared to imports of around 3.5 billion euros. The country is a notable exporter of Gouda cheese to Chile and leads global cheese imports.

Significant Events in the Dairy Market

Recent developments include the acquisition of Amalthea by Ausnutria Dairy Corp., marking growth in the organic sector. Global trends have led to an increase in raw milk prices to 47.75 euro cents per kg. Environmental policies targeting nitrogen emissions may impact livestock and milk production, while a 13% drop in dairy exports to China has been observed. Collaborations with Arla Foods and over 8,400 European farmers, including those from the Netherlands, have strengthened market positions. Additionally, the introduction of the Milk Sustainability Center's free version for selected farmers is enhancing sustainability efforts. The end of the EU derogation for manure spreading has resulted in reduced herd sizes for some farmers.

Innovation and Research

The Yili Innovation Center Europe, located in Wageningen, exemplifies the Netherlands' commitment to research and development within the dairy sector, fostering innovation in both traditional and alternative dairy products.

Technological Advancements

The Netherlands is renowned for pioneering robotic milking systems, which are widely adopted in Northern Europe. These systems increase milk yield by 5–12% and reduce labor costs by 15–20%.

Preservation of Traditions

Traditional Dutch cheesemaking methods are preserved by Marieke Gouda, which imports cultures, herbs, spices, and equipment from the Netherlands to maintain authenticity in its cheese production.

International Cooperation

The Netherlands continues to strengthen agricultural cooperation with Kazakhstan, with a Dutch trade mission representing a significant step in enhancing agricultural dialogue between the two countries.

FrieslandCampina's Market Position

FrieslandCampina, based in the Netherlands, has a strong presence in the European dairy industry. Recently, it announced a significant reduction in its milk price for November, reflecting market adjustments. It is part of a partnership with Netherlands-based start-up Vivici to support a new facility in the UAE for producing animal-free proteins.

Technological Integration

The Netherlands is one of the countries where Tvarit's AI technology is being increasingly utilized to improve dairy production efficiency.

Market Challenges

Butter for first-quarter delivery is priced below €4,000 per tonne, a level not seen since 2021. The average milk price has dropped significantly. In the Netherlands, the average milk price has dropped by €13 since September, now standing at less than €42.50 per 100 kg, while production costs are around €45 per 100 kg, putting financial pressure on farmers.

Innovative Products

Dutch supermarket Albert Heijn supports the concept of hybrid milks. At the World of Private Label International Trade Show in Amsterdam, Dutch company Farm Dairy introduced a lineup of hybrid milk products.

Production Facility Incident

The recall of affected infant formula was initiated following the detection of bacteria at a production facility in the Netherlands.

Major Dairy Player in the EU

Dutch processor FrieslandCampina has announced merger plans with Belgian processor Milcobel. The Dutch food industry is projected to experience slower growth. The Dutch food industry is expected to grow at a slower rate in the coming years, with the dairy processing sector expected to contract by 1% annually in 2026 and 2027. FrieslandCampina's merger with Milcobel aims to address rising costs and competition, providing economies of scale.

The Netherlands is one of the primary markets for Estonian dairy exports. Estonia exported cream, fresh cheese, and various types of cheese primarily to the Netherlands.

The Netherlands faced bluetongue disease since 2023, but no complete ban on cattle imports was imposed. The Netherlands applies regionalization for cattle imports, allowing disease-free regions to continue exports.

Modified: 2026/01/01