Dutch dairy giant FrieslandCampina and Belgium’s Milcobel have announced a merger. The acquisition is a strategic move that will reshape the European dairy sector.
A combined 14 billion euros
The merger takes place against the backdrop of a highly competitive global dairy market. With the acquisition, FrieslandCampina not only strengthens its presence in Belgium but also its position as a leading player in Europe. The two companies have a combined turnover of more than 14 billion euros and operations in 30 countries.
For Milcobel, Belgium’s largest dairy producer with a turnover of 1.3 billion euros in 2023, the merger mainly means a new start. The company, known for cheese brands such as Bruges and Nazareth, has suffered setbacks in recent years, including a net loss of 11.6 million euros last year. This led to a reorganisation and the loss of 130 jobs. The sale of ice cream producer Ysco earlier this year was one of the measures to relieve financial pressure.
Cooperative model remains central
The merger should lead to greater strength in key market segments such as consumer cheese, mozzarella, milk and yoghurt, while efficiency and sustainability benefits are also expected. The companies stress that the alliance will have no negative impact on staff.
Both companies operate as cooperatives, in which dairy farmers are both suppliers and shareholders. The new dairy group will process 10 million tonnes of milk annually, supplied by nearly 11,000 dairy farms and a total of 16,000 members. Accordingly, before the merger can go ahead, the members of both cooperatives and the competition authorities must still give their approval.
