Two Dairy Farms in Western Europe Agree to Merge

Two prominent dairy companies in Western Europe – FrieslandCampina in the Netherlands and Milcobel in Belgium- on Wednesday said that they have agreed to merge to create a leading dairy cooperative and dairy company.

The merger of these firms provides the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.

However, the proposed merger is subject to approval by FrieslandCampina’s Members’ Council, Milcobel’s Extraordinary Meeting of Shareholders, and antitrust authorities. Member dairy farmers, employees, works councils and trade unions have been informed about the merger proposal.

The merger of the two companies will create one international, future-oriented organisation that can seize opportunities and address challenges more effectively in the global dairy market.

Both merger partners, owned by dairy farmers for many generations, complement each other well in market positions and product portfolios. The merger offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability.

Sybren Attema, Chair Zuivelcoöperatie FrieslandCampina, said that the merger is bigger than the sum of its parts and creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market.

“This also strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers, now and in the future,” Attema said.

Betty Eeckhaut, Chair of the Board of Milcobel, said that the cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger.

He said that their goal remains to create added value for our member dairy farmers and through their regional complementarity, they will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future.

He added: “For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further professionalisation of our services.”

Based on the combined 2023 annual figures of FrieslandCampina and Milcobel – excluding Milcobel’s Ysco business, which is in the process of being divested – the new, combined organisation has a pro forma revenue of more than $14.55 billion, operates in 30 countries, employs nearly 22,000 staff worldwide, and processes a total volume of approximately 10 billion kg of member milk.

This milk is supplied by nearly 11,000-member dairy farms owned by approximately 16,000-member dairy farmers in the Netherlands, Belgium, Germany, and Northern France.

Framework Agreement Signed

The boards of the cooperatives and executive management of the two parties have signed a framework agreement regarding the proposed merger. The aim is to finalise a detailed merger proposal in the first half of 2025, which will then be discussed with the members of FrieslandCampina and the shareholders of Milcobel.

Subsequently, the merger agreement will be submitted for approval to Milcobel’s Extraordinary Meeting of Shareholders and FrieslandCampina’s Members’ Council. The merger also requires approval from antitrust authorities.