December 20, 2024

 

FrieslandCampina and Milcobel announce merger, strengthening European dairy market

 
 


Dutch dairy giant FrieslandCampina and Belgium's Milcobel have announced a merger, marking a strategic move that is set to reshape the European dairy industry.

 

The merger comes amidst a highly competitive global dairy market. With a combined turnover exceeding EUR 14 billion (US$14.5 billion) and operations spanning 30 countries, FrieslandCampina strengthens its position as a leading player in Europe and expands its presence in Belgium.

 

Milcobel, Belgium's largest dairy producer, reported a turnover of EUR 1.3 billion (US$1.34 billion) in 2023. The merger offers the company a chance for renewal following financial difficulties in recent years. Milcobel experienced a net loss of EUR 11.6 million (US$12 billion) last year, which resulted in a reorganisation and the loss of 130 jobs. Earlier this year, the company sold its ice cream producer Ysco to ease financial pressures.

 

The new alliance is expected to bolster strength in core market segments such as consumer cheese, mozzarella, milk, and yoghurt. Both companies anticipate efficiency and sustainability benefits from the merger while ensuring no negative impact on staff.

 

The cooperative model remains central to both organisations. Dairy farmers act as both suppliers and shareholders, with nearly 11,000 dairy farms and a total of 16,000 members set to supply the new group, which will process 10 million tonnes of milk annually.

 

Before the merger proceeds, approval is required from the members of both cooperatives and competition authorities.

 

-      Retail Detail

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