Dairy nation Holland - · PDF fileDairy nation Holland 2 2013 Dutch dairy in figures ......

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Dutch Dairy in Figures is a publication presenting a statistical overview of the main developments in the Dutch dairy sector in 2013. Even though economic conditions were generally less than favourable, this important and vital industry sector had a good year in 2013. Ongoing innovation enables it to respond appropriately to the growing opportunities offered by the global market.

Modern sectorThe Netherlands is a dairy country. Production and consumption of milk, butter and cheese have a long tradition here, and the characteristic landscape featuring meadows with cows and windmills is inextricably bound up with how other countries see us. Behind this image a modern sector is operating which, with an eye for the welfare of man, animal and environment, has grown into one of the largest and most vital agricultural sectors in the Netherlands. As such, it makes an important contribution to the Dutch economy. The dairy sector is characterised by a high degree of specialisation, horizontal concentration, vertical integration and growing internationalisation and export.

From local tradition to international businessThe current business model, with its strong international orientation, has developed in the past 140 years from a situation in which dairy production was mainly a farm activity focusing on local needs. This changed when the first dairy factories were set up around 1870. Production doubled between 1950 and 1980, increasing by 40% per capita. Substantial growth took place especially after 1960, when cooled tank systems were introduced and more and more farmers started using mechanical milking systems. This formed the basis for further international expansion.

Dairy nation Holland

2013 Dutch dairy in figures2

Dutch dairy in figures 2013

Dutch dairy in figures gives an up-to-date overview of the Dutch dairy sector and is divided into eight topics:

Dairy nation Holland

Economic importance

Market overview

Dairy farming

Milk processing industry

Trade

Consumption

Organisations The figures for the year 2013 are provisional, but will only differ slightly from the final figures.

Quoting data from this publication is permitted, provided that the source is acknowledged. No legal rights may be derived from this publication.

For information:[email protected] Design Willemijn de Lint, HaarlemPrinting Media Krachtcentrale ISSN 0303-5271


The scaling up of activities at farm level and in particular the availability of cooled transport facilities were important benchmarks in the development of the Dutch dairy industry. They resulted in a strong increase in the scope and scale of dairy factory activities after the sixties. A higher processing efficiency at a decreasing number of locations became the trend. In 1985 almost three quarters of the dairy factories that were in operation in 1960 had closed down.

Milk quota scheme: a major influenceThe introduction of the milk quota scheme in Europe in the early eighties marked the start of a new phase in the development of the dairy sector. The scheme curbed productivity improvements in dairy farming that were achieved through expansion and more milk. More than before, efforts had to be aimed at more economic use of existing means of production. This led to accelerated development of operational efficiency, which was reflected in a steadily decreasing dairy herd and growing productivity per cow. Investments in more effective roughage production, improved feed quality and genetic selection via breeding programmes were responsible for this.

In the dairy industry, curbing of the milk production resulted in strong capacity rationalisation, which in a general sense provided an additional impetus to the efforts to raise efficiency. Nowadays the Dutch dairy sector is one of the most consolidated industries worldwide. Most of the milk is processed within a cooperative structure. Such cooperatives, in which dairy farmers, as owners of the cooperative, took control of central processing of their milk, have a long tradition in the Netherlands. The largest cooperative, FrieslandCampina, is in the top ten of dairy companies worldwide.

End of quota scheme: new opportunitiesThe end of the milk quota system in 2015 will mark the start of yet another period in the history of the Dutch dairy sector. A period in which growing global demand will offer new opportunities. Based on their rich tradition of quality and professionalism, dairy farmers as well as dairy companies are now investing heavily in facilities that will enable them to use these opportunities in innovative and sustainable ways. They will be competing in the international markets so as to ensure that the dairy sector can continue to play its important role for the Dutch economy and Dutch exports.

Dairy nation HollandDairy nation Holland

4 5 Dutch dairy in figures 2013

2013 Dutch dairy in figures

Nearly 18 thousand dairy farmers deliver 12.2 billion kgs of milk to the industry

Over 50 plants process 12.3 billion kgs of milk (including import, re-processing and stocks)

65% of Dutch milk production is sold abroad, where the EU is the most important market

35% of Dutch milk production is consumed in the Netherlands

Utilisation of Dutch milk

8,3%55,8%

1,6%

13,0%

6,3%

15,0%

Drinking milk and other fresh milk products

Cheese

Butter and butteroil

Milk powder

Condensed milk

Other

8,3%55,8%

1,6%

13,0%

6,3%

15,0%

Drinking milk and other fresh milk products

Cheese

Butter and butteroil

Milk powder

Condensed milk

Other

Economic importance Economic importance

source: Research Institute LEI

source: Dutch Dairy Board (PZ), Statistics Netherlands (CBS)

Contribution of Agro & Food to the Dutch economy in 2012Added value

Value of Dutch dairy production

Dutch economy: € 538 billion

Other Agro & Food: € 42.3 billion (7.8%)

Dairy € 6.3 billion (1.2%)

Agro & Food € 48.6 billion (9.0%)

6 7

billion € Dairy farming Milk processing industry

2005 2010 2012 20133

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5

6

7

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Key statistics 17 800 dairy farms 1.55 million dairy cows, 0.28 million dairy goats 1.2 million hectares of grassland and maize (28% of the surface area of the Netherlands) 12.4 billion kg milk production 22 milk processing companies, 51 dairy factories 300 wholesalers 7 000 sales outlets 60 000 jobs in production, processing, wholesale and retail Contribution to the national economy 1.2% (about € 6.3 billion), of which:

Dairy farming 13% Processing 28% Delivery 48% Distribution 11%

Gross production value of dairy farming € 4.9 billion (18% of total agriculture)

Market overview Market overview

8 9

Dutch quotation for butter€ per 100 kg ex-factory, excluding VAT

source: Dutch Dairy Board (PZ)


Revenue from milkOn basis of Dutch quotations and world market prices for butter and skimmed milk powder

Market pricesThe dairy market developed well in 2013 despite the ongoing economic crisis. While this development was primarily supply-driven, the continued strong demand, in particular from China, also constituted an important market factor in support of growth.

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Quotation Long-term average (2005 - 2013)maximum: € 437.00

minimum: € 205.00

average: € 312.50

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maximum: € 383.00

minimum: € 150.00

average: € 234.03

Quotation Long-term average (2005 - 2013)

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Quotation Long-term average (2005 - 2013)maximum: € 437.00

minimum: € 205.00

average: € 312.50 ja

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100

200

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400

500

maximum: € 383.00

minimum: € 150.00

average: € 234.03

Quotation Long-term average (2005 - 2013)

0,8

1,0

1,2

200

300

400

500

Dutch quotation for skimmed milk powder€ per 100 kg ex-factory, excluding VAT



In the first months of the year, milk production in major dairy regions such as the EU and the US remained low owing to the unusually long and cold winter. In parallel with this, a drought in New Zealand, coupled with the approaching end of the production season there, caused further restriction in supply. This resulted in sharp price increases of dairy commodities from late March on both the global and the internal EU market. In the second half of the year, improvement in the weather conditions, rising milk prices and relatively moderate feed costs ensured a gradual increase in milk production without this resulting in pressure on prices.

The final outcome was that the year 2013 was characterised by exceptionally high average prices. The Dutch quotations for butter and various milk powders, as well as the average value indicators of Gouda 48+ cheese, were all 25% to 30% above the average level of 2012. The structural trend towards higher prices for whey powder continued also in 2013.

20

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35

45 € per 100 kg of milk with 3.7% fat

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world marketEU market

basic price (on basis of EU intervention prices for skimmed milk powder and butter)

Market overviewMarket overview

10 11source: Dutch Dairy Board (PZ), European Commission

Milk prices paid

Milk pricesIn the wake of developments on the (international) market Dutch dairy farmers saw their income from milk increase to record height. The average milk price was more than 16% higher than that in 2012, which meant that the level was at an all-time high. Thanks to the high prices, margins for dairy cattle farmers also rose strongly, making 2013 a good year for this sector. The results of the international milk price comparison confirm this positive picture but also illustrate that developments may differ strongly from one company to another.

source: Agriculture and Horticulture Organization Netherlands (LTO) (www.milkprices.nl)

International milk price comparison

€ per 100 kg

Company Country 2012 2013 2013/2012

Hämeenlinnan O. Finland 44.06 45.18 2.5%

Granarolo (Noord) Italy 40.73 41.87 2.8%

FrieslandCampina Netherlands 35.01 40.95 17.0%

DOC Kaas Netherlands 33.40 38.97 16.7%

Milcobel Belgium 30.63 38.68 26.3%

Arla Foods DK Denmark 34.21 38.34 12.1%

Glanbia Ireland 30.90 37.63 21.8%

Alois Müller Germany 31.22 37.33 19.6%

Kerry Agribusiness Ireland 30.45 37.32 22.6%

DMK (Nordmilch) Germany 31.04 36.99 19.2%

Dairy Crest (Davidstow) United Kingdom 35.15 36.50 3.9%

Sodiaal Union France 33.57 36.13 7.6%

Danone (Pas de Calais) France 33.66 35.99 6.9%

Bongrain (Basse Normandie) France 33.48 35.94 7.4%

Lactalis (Pays de la Loire) France 32.82 35.35 7.7%

First Milk United Kingdom 32.42 33.99 4.8%

Average 33.92 37.95 11.9%

Emmi Switzerland 46.64 49.65 6.4%

Fonterra New Zealand 29.99 35.54 18.5%

USA class III USA 33.36 33.28 -0.3%

Consumer pricesRetail prices of dairy products remained stable or showed a small increase in 2013. The price of drinking milk increased gradually, the average level being clearly higher than in 2012. The latter was also true for butter, but in this case this was to be attributed mainly to the price recovery that took place in the first half of the year. For cheese the increase in the price level compared to last year was very limited. In the yoghurt and dessert product category prices remained stable.

source: Statistics Netherlands (CBS)

Dutch consumer pricesAverage 2006 = 100

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index

drinking milkcheese

yogurt, cream, desserts and similar productsbutter



note: prices for standard milk with 4.2% fat and 3.4% protein (excluding VAT and including supplementary payments)

€ per 100 kg

NetherlandsEU

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Dairy cows and milk yield per cow in the Netherlands

Dairy herdDevelopment of the dairy herd in 2013 was strongly influenced by the dairy sector’s decision to accelerate the efforts focused on growth of milk production. Adding more animals was the only option available for short-term realisation of this growth. For this reason, milk production increased more or less in parallel with the growth of the dairy herd (+4.6%). The herd grew to 1.55 million animals, while the average milk yield per animal remained stable.

Milk supplyIn line with the development of production, Dutch milk supply increased by 4.6% in 2013, reaching a level of 12.2 billion kg. This meant that the growth rate in the Netherlands was well above the EU average (+0.6%).

source: Dutch Dairy Board (PZ), Statistics Netherlands (CBS)

source: Dutch Dairy Board (PZ), Eurostat, International Dairy Federation (IDF), national statistics

Dairy farming Dairy farming

1 350

1 400

1 450

1 500

1 550

1 600

201320122011201020092008200720062005

Dairy cows

Milk yield

7 200

7 400

7 600

7 800

8 000

8 200

Dai

ry c

ows

(x 1

000

)

Milk

yie

ld (k

g)

SE +0,3%

FL-0,1%

EE+13,6%

LT+4,8%

PL+10,2%

% -20 to -16 -16 to -12 -12 to -8 -8 to -4 -4 to 0 0 to +4 +4 to +8 +8 to +12 +12 to +16 +16 to +20

CZ+1,6% SK

+3,3%HU

+3,2%

AT+5,5%

LU+1,8%

DE+5,8%

NL+5,1%

DK+4,0%

UK+0,8%

BE+2,4%

FR+1,5%

ES+3,8%

IT+0,9%

PT-2,9%

IE+4,8%

RO -2,7%

EL-3,1%

CY+6,5%

MT+2,9%

BG-9,5%

LV+17,7%

HR-19,3%

SL-0,5%

Milk deliveries EUDevelopment 2013 compared to 2012 (in %)

Scale of operationScaling up of the Dutch dairy farms continued at accelerated pace in 2013. The average size of a cattle farm, expressed in milk production, increased to 665 000 kg (+4.7%). The growth was markedly higher than in the past few years. The number of dairy farms showed a limited decrease (-1.7%).

12 13 Dutch dairy in figures 2013


source: Dutch Dairy Board (PZ), International Dairy Federation (IDF)

Milk production per country in 2013, in kg per capitaData based on the production of cow’s milk and buffalo’s milk

Dairy farmingDairy farming

14 15

Milk production and quota schemeAs a consequence of the decisions taken in the framework of the reform of the European dairy policy the milk quota scheme will terminate on 31 March 2015. In the run-up to this date the milk quota was increased for the last time, by 1% for the quota year 2013/14. This brought the total Dutch milk quota for deliveries to factories to about 11,972 million kg. The good price level, in combination with the fact that dairy farmers are anticipating the post-quota period in their business operations, resulted in an unprecedented overrun in the quota year 2013/14 (+4%). As a consequence, Dutch dairy farmers were required to pay a superlevy of € 132 million, a record sum. It would seem that the quota system has now also lost its relevance in the Netherlands. Structural shortfalls have meant that the same happened years ago in most other EU member states.

EU-28

Ireland 1 168Denmark 904Netherlands 709Lithuania 569France 388Germany 379Poland 331Belgium 304United Kingdom 221Italy 187Other 204

EU average 305

South America

Uruguay 682Argentina 286Brazil 170Chile 157Colombia 140Venezuela 80

Africa

Kenya 96Algeria 62Egypt 61South Africa 54Nigeria 3

Azia

Pakistan 214India 102Japan 60South Korea 43China 30Thailand 13Indonesia 4Vietnam 4Malaysia 2Philippines 0

Middle East

Turkey 213Iran 96Saudi Arabia 61United Arab. Emirates 4

Other Europe

Belarus 718Ukraine 243Russian Federation 223

Oceania

New Zealand 4 613Australia 412

North and Central America

USA 289Canada 251Mexico 97

Per capita milk production worldwide: 105 kg



Milk production in perspectiveWhen milk production is plotted against the size of the population an indication is obtained of the scope for exports or the need for imports. With a milk production of over 700 kg per capita the Netherlands scores much higher than the global average (105 kg), making it one of the major dairy-exporting countries. In regions such as Asia, Africa and the Middle-East there are many countries with a relatively low per capita milk production, which is why these are important destinations for the international dairy trade, also from the Netherlands.

Utilization of Dutch milk quota Dutch superlevy

source: Dutch Dairy Board (PZ), Netherlands Enterprise Agency (RVO)

Overrun/shortfall Superlevy

million kg € million

2005/06 -5.5 0.02006/07 30.8 8.82007/08 142.3 39.62008/09 157.2 43.82009/10 46.8 13.12010/11 140.3 38.72011/12 59.1 16.42012/13 -43.7 0.02013/14 475.0 132.010.0

10.5

11.0

11.5

12.0

12.5

05/0606/07 08/09 10/11 12/13 13/1407/08 09/10 11/12

05/0606/07

07/08 08/09 09/10 10/11 11/12 12/13*)

billion kg Dutch milk deliveriesDutch milk quota

% overrun/shortfall

-0,1%

+0.3%+1.3%

+1.4%+0.4%

+1.2% +0.5%

-0.4%

+4.0%

Milk processingIn line with the increased milk supply, the amount of milk processed in the Netherlands also rose further in 2013, reaching a level of about 12.3 billion kg. Much of the extra milk was used for the production of cheese, which is by far the most important product category for the Dutch dairy sector. Cheese production stood at about 794 000 tons, absorbing almost 56% of the quantity of processed milk.

Besides cheese, butter and butter oil were also produced in higher volumes. Better export opportunities furthermore led to an increase in the production of non-skimmed milk powder. On the other hand, the quantity of milk processed into drinking milk and other fresh milk products again showed a decline, while the production of skimmed milk powder stagnated. After years of growth the production of condensed milk suffered a slight setback.

RevenueThe high price level for dairy products, in combination with the higher milk production, led to an increase in the value of Dutch dairy production in 2013. A record level of over € 7.1 billion (+11%) was achieved, corresponding to € 57.82 per 100 kg of milk.

Milk processing industry Milk processing industry

Source: Dutch Dairy Board (PZ)


Dutch dairy production

Utilization of Dutch milk 2013

16 17

million kg

2012 2013 2013/2012

Milk delivered to factories 11 675 12 213 4.6%

Milk available for processing 11 849 12 346 4.2%

Drinking milk and other fresh milk products1) 2)

1 044 1 028 -1.5%

Cheese (including quark) 766 794 3.6%

Butter and butteroil 195 199 2.1%

Non-skimmed milk powder 121 128 5.9%

Skimmed milk powder 66 65 -0.7%

Condensed milk3) 371 360 -2.9%

1) excluding added ingredients 2) including cream 3) including coffee milk (evaporated milk)

Drinking milk and other fresh milk products 8.3%

Cheese 55.8%

Butter and butteroil 1.6%

Milk powder 13.0%

Condensed milk 6.3%

Other 15.0%

Consumptiemelk en -producten 9,3%

Overig 13,0%



Milk processing industryMilk processing industry

StructureAt the end of 2013 the Dutch dairy industry comprised essentially 22 companies with a total of 51 production sites. The approaching end of the milk quota scheme and the opportunities offered by developments in the global dairy market have further provided an impetus for new investments aimed at capacity growth through modernisation or expansion of existing dairy factories or construction of new ones. Although not yet visible in the statistics, the results will gradually become noticeable as new installations come on stream.

source: Dutch Dairy Board (PZ), Statistics Netherlands (CBS) source: Rabobank

Key statistics

Top 20 largest dairy companies

18 19

Company Country Dairy turnover (€ billion)

1 Nestlé Switzerland 21.3

2 Danone France 15.2

3 Lactalis France 14.6

4 Fonterra New Zealand 11.5

5 FrieslandCampina Netherlands 11.2

6 Dairy Farmers of America USA 11.2

7 Arla Foods Denmark/Sweden 9.4

8 Saputo Canada 6.6

9 Dean Foods USA 6.5

10 Yili China 5.7

11 Unilever 1) Netherlands/United Kingdom 5.6

12 Meiji Japan 5.6

13 DMK Germany 5.3

14 Mengniu China 5.3

15 Sodiaal France 5.0

16 Bongrain France 4.4

17 Kraft Foods USA 4.4

18 Müller 1) Germany 3.8

19 Schreiber Foods 1) USA 3.8

20 Morinaga Milk Industry Japan 3.6

note: turnover in 2013 + mergers and acquisitions between 1 January and 15 June 20141) estimate

Meppel

Rouveen

Limmen

Gerkesklooster

Bolsward

Scharsterbrug

Nunspeet

Gorinchem

Workum

Ommen

Hengelo

Zelhem

BeemsterKatwoude

Dalfsen

Schoonrewoerd

Zoetermeer

CuykRijkevoort

Bedum

Lutjewinkel

Bleskensgraaf

Maasdam

Rotterdam

EindhovenNuenen

Den Bosch

MolenschotVeghel

Born

MarumNoordwijk

Leeuwarden

Beilen

Balkbrug

Kampen

BorculoLochem

Nijkerk

Steenderen

Hoogeveen

Coevorden

Lelystad

Zeewolde

Boxmeer

Etten-Leur

Sloten

Heerenveen

FrieslandCampina 23

Ausnutria Hyproca 2

Bel Leerdammer 2

DOC Kaas 2

Henri Willig 2

Nutricia 2

Rouveen Kaasspecialiteiten 2

Vreugdenhil Dairy Foods 2

Arla Foods - Nijkerk 1

A-ware - Coevorden 1

CONO Kaasmakers - Beemster 1

Delta Milk - Bleskensgraaf

DVNutrition - Hoogeveen

Farm Dairy - Lelystad

Globemilk - Boxmeer

Hochwald - Bolsward

Nestlé - Nunspeet

Kaasmakerij Özgazi - Etten-Leur

Sloten - Sloten

Vecozuivel - Zeewolde

VIV Buisman - Zelhem

Zuivelhoeve - Hengelo

2012 2013

Companies1) 22 22

Number of factories 52 51

Cooperatives 30 29

Non-cooperative firms 22 22

Number of employees 9 900 9 900

Milk processed (million kg) 11 849 12 346

Production value (€ million) 6 430 7 140

1) companies that process more than 10 million kg of raw milk and/or cream



Trade Trade

Dairy products € 6.7 billion

Agricultural products € 77.9 billion

Total € 433.8 billionExports



Total € 384.3 billionImports

20 21

source: Statistics Netherlands (CBS), Dutch Dairy Board (PZ)

Trade balance in 2013

Positive trade balance

Total € 49.5 billion



source: Dutch Dairy Board (PZ), Eurostat, Statistics Netherlands (CBS)

Dutch export value per destination 2013



Trade balanceDutch exports in 2013 showed substantial volume growth in all key product groups. Higher exports and a higher price level resulted in a substantial increase in the value of exports, which amounted to over € 6.7 billion (+21%). At the same time the value of imports also increased on balance, to almost € 2.7 billion (+7%). This was due in particular to higher price levels and not so much to higher volumes. The biggest contributions to the increase came from cheese and milk powders.

The substantial increase in the value of exports in combination with the limited increase in the value of imports resulted in a further increase in the positive Dutch trade balance for dairy products. At almost € 4.1 billion, dairy products contributed over 8% to the overall Dutch trade balance.

ExportsThe European Union is the main destination for Dutch dairy products, accounting for more than two thirds of the total value of exports. Trade with Germany alone accounts for almost 24%. The Netherlands is also the most active EU member state in the world market, with a share of over 5% in world trade. The main destinations outside the EU are Russia, China, Nigeria and Saudi Arabia.

Cheese remains by far the most important export product, accounting for over 46% of the value of exports. Most of the cheese exports, which increased once again, went to countries within the EU. Considerably higher volumes were shipped to Belgium and the United Kingdom. The biggest growth market, however, was a non-EU state: Russia.

Growth in butter related only to internal EU trade (France, United Kingdom), while exports to third countries decreased again. Non-skimmed milk powder goes mainly to destinations outside the EU (82%), such as Africa and the Middle-East. In 2013, however, the internal EU trade showed the greatest growth. Exports of skimmed milk powder partly recovered from the strong drop in 2012. This was to be attributed exclusively to strong growth of the internal EU trade while exports to third countries declined further.

European Union € 4.5 billion

Third countries € 2.2 billion

Germany 35%

Otherthird countries

46%Belgium 19%

Nigeria 7%

Saudi Arabia 5%

Kuwait 4% Indonesia 4%

South Korea 4% USA 3%

Russian Federation 12%

United Arab. Emirates 5%

China (including Hong Kong) 11%

France 15%

Spain 4%Greece 4%

Sweden 3%

Italy 5%

United Kingdom 6%

Other EU9%

TradeTrade

22 23

ImportsThe Netherlands also imports a substantial amount of dairy products each year. More than 80% of the imports come from neighbouring EU countries. Germany is by far the largest supplier, accounting for 45% of the total import value.Worldwide, countries such as Russia, China, Japan and the US are leading importers of dairy products.

source: Eurostat, Statistics Netherlands (CBS)

source: Dutch Dairy Board (PZ), Comtradesource: Dutch Dairy Board (PZ), Eurostat, Comtrade

source: Dutch Dairy Board (PZ), Eurostat, Comtrade

Top 5 exporting countries 2013

Dutch imports of dairy products

Most important dairy importing countries in the world (outside EU)Including the share of the Netherlands

million kg index 2012 = 100Cheese Butter and butteroil

index indexEU 1) 805 104.5 New Zealand 488 99.8 of which Netherlands 146 114.7 EU 1) 127 101.2USA 318 121.6 of which Netherlands 19 80.7New Zealand 289 90.8 USA 94 189.8Australia 154 90.6 Belarus 66 80.4Belarus 140 103.0 Australia 47 85.0

Total 2 396 102.3 Total 921 102.0

Non-skimmed milk powder Skimmed milk powderindex index

New Zealand 1 299 102.9 USA 555 124.6EU 1) 374 96.8 EU 1) 408 78.3 of which Netherlands 132 101.4 of which Netherlands 49 88.4Argentina 181 89.0 New Zealand 398 100.6Australia 92 82.4 India 145 421.2Uruguay 74 120.2 Australia 113 66.4

Total 2 461 101.7 Total 1 852 102.2

1) excluding intra trade

Position of Dutch dairy exports on the world market 2013Export shares of the most important dairy exporting countries (total world trade 2013: 63.0 billion kg milk equivalent)

Other 15.2%

New Zealand 28.5%

USA 14.6%

Australia 5.3%

Argentina 3.5%Belarus 4.5%

India 2.6%Uruguay

2.1%

Netherlands 5.1%

Germany 3.3%

France 3.3%

Belgium 1.9%Denmark 1.8%Poland 1.3%

Italy 1.1%

Other EU 5.9%

Dutch exports to third countries: 3.2 billion kg% of world trade: 5.1%

EU 23.7%



China(including Hong Kong)

Russian FederationSaudi Arabia

USAJapan

MexicoIndonesia

AlgeriaMalaysia

Philippines billion €

0 1 2 3 4 5 6

NL: 4.5%NL: 5.5%NL: 8.0%NL: 5.7%NL: 4.5%NL: 2.1%NL: 7.8%NL: 5.7%NL: 3.3%NL: 2.4%

Butter and butteroilNon-skimmed milk powder

CheeseSkimmed milk powder

0

50

100

150

200

250

300

2005 2010 2012 2013

million kg

Consumption

The Netherlands has a long tradition of dairy consumption. Milk, cheese, yoghurt and dairy desserts are part of the daily diet for many Dutch people. Dutch per capita cheese consumption has for years exceeded the (relatively high) European average.

In addition to the traditional use of milk and dairy products, other dietary patterns have developed over the years. One of these was the rapid growth in out-of-the-home use. This has led to an entirely new range of dairy products; in this way, through product innovation, dairy companies are trying to respond to customer needs while simultaneously creating more added value for their products.

Within the consumer budget for food, beverages and tobacco, the share of dairy products has been more or less stable for years, amounting to just under 11%. In 2012 this accounted for almost € 4.5 billion, or 1.6% of total consumer spending.

source: Statistics Netherlands (CBS)

sources: Dutch Association for Soft Drinks, Mineral Waters and Juices (FWS), Dutch Wine Board (Productschap Wijn), Royal Dutch Association for Coffee and Tea (KNVKT), Dutch Brewers (Nederlandse Brouwers), Dutch Dairy Board (PZ)

Consumption

Consumption spending of Dutch households

Consumption of liquids 2012

24 25

€ billion2005 2010 2011 2012

Meat and meat products 5.3 5.7 5.8 5.8Potatoes, vegetables and fruit 3.9 4.9 4.9 5.1Dairy products 1) 3.6 4.3 4.4 4.5Bread and bakery products 2.5 3.1 3.1 3.3Fish 0.9 1.1 1.2 1.2Other food products 5.0 5.9 6.1 6.3

Total food products 21.1 25.0 25.5 26.2

Drink 4.9 5.8 6.1 6.2Confectionery 3.2 3.7 3.7 3.8Ice cream 0.2 0.3 0.3 0.3Beverages and tobacco 4.1 5.0 5.0 5.2

Total beverages and tobacco 12.5 14.9 15.1 15.5

Total food, beverages and tobacco 33.6 39.9 40.6 41.7

Total consumption spending 250.3 268.2 271.8 273.3

Share of dairy products in:Total food products 17.3% 17.2% 17.1% 17.0%Total food, beverages and tobacco 10.8% 10.8% 10.8% 10.7%Total consumption spending 1.5% 1.6% 1.6% 1.6%

1) including eggs and margarine

0 30 60 90 120 150

Nectars

Syrups (ready to drink)

Juices

Mineral water

Wine

Drinking milk

Beer

Tea

Soft drinks

Coffee

per person in litres



Sector organisations

Dairy sector related organisationsThe Dutch dairy sector is characterised by a high degree of organisation. Each segment of the production chain has its own organisation(s) to represent its interests. A large proportion of the dairy farmers are represented by the Dutch Federation of Agriculture and Horticulture (LTO Nederland), in particular by the LTO Dairy Committee , while there is also the Dutch Dairy Farmers Union (NMV). Industry is represented by the Dutch Dairy Organisation (NZO), traders by the organisation of Dutch Dairy Traders (Gemzu) and retailers by the Dutch Food Retail Association (CBL).

Dutch Dairy Board to close its doors Most of the above-mentioned organisations have been represented on the Board of Governors of the Dairy Board since 1956. The Dairy Board is a statutory public organisation with regula-tory powers in the field of legal measures, which are mostly quality related. It also acts as a collective instrument for funding of activities focused on market information, education, sus tainability, labour issues, animal health, food safety, research and innovation. Political decisions taken in 2012 led to government plans to dissolve the statutory public organisation system, and with that also the Dairy Board. At the end of 2014 the Board will close its doors.As a consequence, 2014 is a transition year in which various Dairy Board tasks have already or will be transferred to other parties. The Board’s public tasks - relating in particular to the implementation of EU legislation (milk quota scheme, import and export schemes, school milk etc.) - have meanwhile been handed over to the Netherlands Enterprise Agency (RVO).

New dairy chain organisation ZuivelNLAt the initiative of NZO and LTO the private chain organisation ZuivelNL was established in January 2014, the aim being to continue a number of the Dairy Board’s non-public tasks. ZuivelNL is an association formed by NZO, LTO and NMV in which other organisations linked to the dairy sector can participate. It is active in fields where cooperation between the seg-ments of the dairy sector will create added value. This mainly involves themes at the inter-face of cattle farming and dairy product processing (food safety, animal health, sustainability, research and innovation) and some themes at the interface of product processing and trade (labour and exports).

26 Dutch dairy in figures 2013

Sector organisations

27

Primary sector

LTO NederlandDutch Federation of Agriculture and Horticulture: organisation for employers and employees in the agricultural sector

www.lto.nl

NMV Dutch Dairy Farmers Union: organisation for the interest of dairy farmers www.nmv.nu

BBZFarmhouse and Artisan Cheese and Dairy Producers: organisation for on-farm processors, active in defending the interests of its members and in product promotion

www.boerderijzuivel.nl

Industry and trade

NZO Dutch Dairy Organisation: association of the Dutch dairy industry www.nzo.nl

GemzuDutch Dairy Traders: umbrella organisation for dairy traders ande other affiliated associations

www.gemzu.nl

CBL Dutch Food Retail Association: association for supermarkets and food service companies www.cbl.nl

Other categories

PZ

Dutch Dairy Board: public body for the Dutch dairy chain. This organisation will be phased out in the course of 2014 and will exclusively focus on the settlement of current activities and obligations

www.prodzuivel.nl

ZuivelNLDairy chain organisation: association in which LTO, NMV and NZO collaborate on several dairy related themes where and when this is considered of added value to the dairy sector

www.zuivelnl.org

RVONetherlands Enterprise Agency (RVO): part of the Ministry of Economic Affairs, which focuses on business support

www.rvo.nl

COKZThe Netherlands Controlling Authority for milk and milk products: implementing organisation for control, specialized in quality assurance in the dairy chain

www.cokz.nl

QLIP Private organisation for analysis and certifica-tion in the dairy chain and agrofood sector www.qlip.nl

GDLeading Dutch animal health and animal production organisation, active in a.o. animal disease control programmes

www.gddiergezondheid.nl

Wageningen UR Livestock Research

Research organisation active in a.o. research on various dairy farming related themes www.wageningenur.nl

NIZO Food Research Research institute for a.o. (dairy)product technology and milk quality www.nizo.com


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