July 2, 2013

 

 

To be able to increase their processing capabilities and meet increasing export-driven demand for their products, Dutch dairy processors plan to invest more than €700 million (US$915m) over the next two years.

 

According to a report published by the Dutch Dairy Association (NZO), which represents the interests of Dutch dairy processors in the Netherlands, companies continue to invest hundreds of millions of euros in the Dutch dairy sector despite "tough economic times."

 

Under existing plans, seven new dairy processing facilities will be constructed and a number will be expanded in the Netherlands over the next couple of years despite the current economic challenges.

 

NZO has pinpointed increasing international demand for Netherlands-made dairy products and the abolition of the EU milk quotas in 2015 as the driving factors behind these investments.

 

In 2012, the Netherlands exported around €5.9 billion (US$7.71 billion) worth of dairy products to more than 135 countries. Neighbouring Germany is currently the largest export market for Dutch dairy products, but significant growth in demand is coming from emerging markets

 

Exports to China, Russia and Nigeria currently total around €450 million (US$590 million), according to the report. This figure is expected to increase by around 7% each year.

 

In an attempt to meet this increasing demand, Dutch dairy manufacturers including FrieslandCampina intend to invest more than €700 million (US$914 million) over the next two years to increase capacity of their processing facilities.

 

Cheese maker CONO intends to plough around €80 million (US$104 million) into the development of a new cheese manufacturing plant, Vreugdenhil is planning to spend approximately €35 million (US$46 million) on a new milk powder facility, and Heerenveen-based A-ware Foods and FrieslandCampina have plans to invest around €500 million (US$653 million).

 

AVH Dairy, Ausnutria Hyproca, Chinese Xian Consummate Industrial and Trading, DOC Kaas, CZ Rouveen en De Graafstroom also have plans to expand their production capabilities in the country.

 

The NZO expects that around 1,000 jobs will be created as a result of these investments, adding to the 44,000 already employed in the sector.