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Dutch dairy in figures

2016

Dutch dairy in figures 2016 3

2 Dutch dairy in figures 2016

The Netherlands: land of dairyModern sectorThe Netherlands is a dairy country. It is a country with old traditions in the production and consumption of milk, butter and cheese, its image inextricably linked to a characteristic landscape of fields dotted with cows and windmills. Behind this image lies a modern sector, one of the largest and most vital agricultural sectors in the Netherlands. Working with people, animals and the environment in mind, this is a sector that makes an important contribution to the Dutch economy.

From local traditions to an international businessThe strong, internationally-oriented business model we see in dairy today has developed over 150 years from a mainly locally-focused on-farm dairy production. Growth in scale at the farm level, and especially the possibilities offered by refrigerated transport, were major milestones in the development of the Dutch dairy industry. Since the 1960s, dairy factories have seen considerable growth in their range of activities and scale. These developments also led to a greater efficiency in processing at fewer and fewer locations.

The major impact of quotasThe introduction of a milk quota system in Europe at the beginning of the 1980s marked the start of a new phase in the development of the dairy sector. It placed limits on the extent to which productivity improvements in dairy farming could be achieved via increases in scale. This gave rise to the accelerated development of business efficiency via a temporary decrease in the size of dairy herds and increasing production per cow. The latter was possible due to the increased efficiency of roughage production, improved feed quality and genetic selection via breeding programmes. The Dutch dairy industry responded to the limits imposed on milk volumes by making greater efforts to realize increased efficiency, because of which it is now one of the most consolidated dairy industries anywhere in the world.The abolition of the milk quota system at the end of March 2015 and the promising developments in store for the global dairy market in the long term have boosted new investments in dairy farming and the dairy industry, with a focus on capacity growth via modernisation, expansion and new plants.

Phosphate ceilingThe strong growth in dairy farming meant that the phosphate ceiling was exceeded in 2015 and 2016, a situation which is set to be repeated in 2017. The phosphate reduction plan, which is designed to improve this situation, came into force in 2017. Following on from this, a system of phosphate production rights is due to be introduced with effect from 1 January 2018. These measures will result in a significant decrease in the size of dairy herds and growth in milk production will be limited in the years ahead.

Dutch dairy in figures 2016Dutch dairy in figures gives an up-to-date overview of the Dutch dairy sector and is divided into eight topics:

The Netherlands: land of dairy Economic importance Market overview Dairy farming Milk processing industry Trade Consumption Organisations

Tables with detailed statistics are available on the English part of the ZuivelNL website: Publications – Dutch dairy in figures 2016 The figures for the year 2016 are provisional, but will differ only 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.

ZuivelNL For information:[email protected] June 2017

Drinking milk and other fresh milk products 7,1%

Cheese 55,4%

Butter and butter oil 1,6%

Milk powder 13,7%

Condensed milk 5,6%

Other 16,6%

Contribution to trade surplus: 7%

17.5 thousand dairy farms

Milk processing

Export revenues € 6.4 billion

1.8 million dairy cows

0.3 million dairy goats

1.1 million hectares of grassland and maize

45 thousand fte's in dairy farming and

milk processing industry

Milk, cheese and yoghurt in the Wheel of Five

(Dutch dietary guidelines)

28% of the surface area of the Netherlands

Outdoor grazing at almost 80% of the dairy farms

Cow milk production 14.5 billion kg

Goat milk production 0.3 billion kg

Production value

€ 6.4 billion milk processing industry

€ 4.4 billion dairy farming

25 companies and 53 dairy plants

4 Dutch dairy in figures 2016 Dutch dairy in figures 2016 5source: ZuivelNL, RVO.nl, Statistics Netherlands (CBS), Sustainable Dairy Chain, The Netherlands Nutrition Centre

Dutch dairy at a glance

Total€ 380.6 billion

Total€ 432.3 billion

IMPORTSEXPORTS

Dairy products€ 2.6 billion

Agricultural products€ 56.6 billion

Agricultural products€ 83.6 billion

Dairy products € 6.4 billion

Nederlandse economie€ 596,7 mrd

Zuivel € 7,1 mrd (1,2%)

Agro & Food € 48,2 mrd (8,1%)

Agro & Food overig € 41,0 mrd (6,9%)



0 1,000

IrelandThe Netherlands

DenmarkFrance

BelgiumGermany

ItalyUnited Kingdom

SpainPoland

854 748 560 450 423 328 307 185 185 179

EU-28288

Economic importanceDutch dairy farms, income development per farm

Dairy turnover processing industry per capita in the EU 2015

Employment in dairy farming and milk processing industry in the Netherlands

Trade balance 2016

€

*) Cheese, butter and butteroil, fermented products, concentrated milk, milk and cream, whey and whey products and products with milk constituents (HS-codes 0401 t/m 0406 en 17021)

source: Eurostat

source: Statistics Netherlands (CBS), Eurostat

67,5%

38%

21%

16%

12%

13%

3,0%

14,8%

5,8%7,0%

1,9%

visgraat melkstal

automatische melksystemen

zij-aan-zij melkstal

grupstal

draaimelkstal

tandemmelkstal

swingover melkstal

horticulture

livestock, meat and eggs

dairy farming

arable farming

other

situatie2005

Gross production value 2016: € 26.9 billion

source: Eurostat

source: Eurostat, ZuivelNL

source: Wageningen University & Research

Production value Dutch dairy farming and milk processing industry

1.300

1.400

1.500

1.600

1.700

10.000

11.000

12.000

13.000

14.000

20,000

0

40,000

60,000

80,000

2005 2006 2007 2008 2009 2011 2012 2013 20142010 2015

Melkproductie

Melk- en kalfkoeien

€

Melkproductie (mln kg)

Aantal melkveebedrijven in 2005: 23.527



2005 2006 2007 2008 2009 2011 2012 2013 20142010 2015 2016

dairy farming milk processing industry

2005 2010 2015

37,500 10,800 33,300 9,700 32,900 12,000

Gross production value Dutch agriculture

0

1

2

3

4

5

6

7

8

2005 2010 2015 2016

dairy farmingbillion € milk processing industry

source: Statistics Netherlands (CBS), Eurostat, LEI

Positive trade balanceTotal € 51.8 billionAgricultural products € 27.0 billion

Dairy products *) € 3.8 billion

0

100

200

300

400

jan-0

5

jul-0

5

jan-0

6

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6

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7

jul-0

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skimmed milk powderbutter


Market overviewMarket pricesThe market was supply-driven in 2016. Developments in supply led especially to strong fluctuations in the price of fat-related products like butter, cheese and whole milk powder.

There was a strong increase in global milk production in the first quarter of 2016. Growth was primarily evident in Europe and North-West Europe in particular. Combined with disappointing demand, this resulted in an imbalance in the market; stock levels increased and prices were under pressure. The price of skimmed milk powder remained at about intervention price level, which caused intervention stocks to increase further.

100

200

300

400

500butter: max € 439.00

butter: min € 205.00

skimmed milk powder: max € 383.00

skimmed milk powder: min € 150.00

skimmed milk powderbutter

jan-0

5

jul-0

5

jan-0

6

jul-0

6

jan-0

7

jul-0

7

jan-0

8

jul-0

8

jan-0

9

jul-0

9

jan-1

0

jul-1

0

jan-1

1

jul-1

1

jan-1

2

jul-1

2

jan-1

3

jul-1

3

jan-1

4

jul-1

4

jan-1

5

jul-1

5

jan-1

6

jul-1

6

jan-1

7source: ZuivelNL

Dutch quotation for butter and skimmed milk powder€ per 100 kg, exclusief btw, af fabriek

€ per 100 kg ex-factory, excluding vat


Annual average Dutch quotations

Year Fresh butter

Wholemilk powder 1)

Skimmed milk powder for: WheypowderHuman consumption 1) Feed (in bulk) 2)

2016 325.83 225.48 179.65 165.52 64.422015 295.35 234.56 180.88 165.23 64.942014 332.54 301.00 258.79 231.98 89.332013 390.98 352.73 302.56 292.60 96.852012 300.87 270.37 233.52 219.98 91.752011 394.38 300.25 238.87 219.71 85.732010 346.52 268.50 217.46 199.98 68.352009 248.83 203.98 176.42 155.73 48.442008 262.67 270.13 212.83 192.29 44.382007 337.92 332.48 317.02 297.12 100.752006 252.94 237.08 212.29 207.31 73.482005 279.33 241.27 196.96 192.81 55.77

1) according usual merchantable quality (protein-standardized)2) free of charge delivery

Intervention stocks in the EU

million kg

source: EU Milk Market Observatory

In April and May, the growth in European milk production weakened and supply stagnated outside Europe too. Prompted by the slower than expected growth in supply and a slight improvement in demand, the dairy market bottomed out at the end of April, rebounding strongly again in May. The prices for skimmed milk powder remained at intervention price level, which resulted in a further increase in intervention stocks.

Supply fell worldwide from June onwards. This decline was evident not just in the EU: less milk was produced in Oceania and South America too. The US was the only significant export country to achieve a considerable growth in its milk production. The fall in supply translated into a strong rise in prices in the rest of the year. A significantly higher price level was achieved by fat-related products like butter, cheese and whole milk powder in particular. The Dutch butter quotation reached a record level at the end of November. Initially, skimmed milk powder did not benefit from the revival of the market. From June to August inclusive intervention SMP was still very relevant, after which the price slowly increased to well above intervention price level.

Development of the average price level in 2016 varied from one product to another in comparison with 2015. The average quotations for skimmed milk power and whey powder changed very little. The average quotation for butter increased by 10%. By contrast, the average quotation for whole milk powder (-4%) and the average indicative value for Gouda cheese (-6%) decreased.

source: ZuivelNL

NederlandEU

20

30

40

35

25

45

jan-0

5

jul-0

5

jan-0

6

jul-0

6

jan-0

7

jul-0

7

jan-0

8

jul-0

8

jan-0

9

jul-0

9

jan-1

0

jul-1

0

jan-1

1

jul-1

1

jan-1

2

jul-1

2

jan-1

3

jul-1

3

jan-1

4

jul-1

4

jan-1

5

dec-

15

jan-1

6

90

95

100

105

drinking milk* yogurt cheese and cottage cheese butter total spending

*Fresh semi-skimmed and skimmed milk

2014 2015 2016

NederlandEU


Consumer prices

source: Statistics Netherlands (CBS)

Average Dutch consumer prices

Development of Dutch consumer price indices


2010 2015 2016 Matured Gouda cheese (1 kg) 8.80 7.19 6.94

Semi-skimmed milk (1 litre) 0.64 0.77 0.76

Butter, unsalted (250 gr) 1.04 1.28 1.26

Vanilla custard (1 litre) 0.86 0.96 0.96

(average 2014 = 100)

index

€

20

30

40

35

25

45

jan-0

5

jul-0

5

jan-0

6

jul-0

6

jan-0

7

jul-0

7

jan-0

8

jul-0

8

jan-0

9

jul-0

9

jan-1

0

jul-1

0

jan-1

1

jul-1

1

jan-1

2

jul-1

2

jan-1

3

jul-1

3

jan-1

4

jul-1

4

jan-1

5

jul-1

5

jan-1

6

jul-1

6

jan-1

7

95

100

105

110

consumptiemelk* yoghurt kaas en kwark boter totaal bestedingen

*Verse halfvolle en magere melk

2013 2014 2015

NetherlandsEU

source: European Commission

Milk prices paid

€ per 100 kg

International milk price comparison€ per 100 kg

Company Country 2015 2016 2016/2015

Granarolo (Noord) Italy 38.93 36.83 -5.4%

Valio Finland 36.03 35.21 -2.3%

Danone (Pas de Calais) France 33.07 31.57 -4.5%

FrieslandCampina Netherlands 33.22 30.80 -7.3%

Sodiaal (Pas de Calais) France 33.41 30.29 -9.3%

Savencia (Basse Normandie) France 32.69 29.78 -8.9%

Lactalis (Pays de la Loire) France 31.67 29.31 -7.4%

Arla Foods DK Denmark 30.50 28.28 -7.3%

Milcobel Belgium 28.45 26.88 -5.5%

Dairy Crest (Davidstow) United Kingdom 34.44 26.67 -22.6%

Müller (Leppersdorf) Germany 28.16 26.10 -7.3%

Kerry Agribusiness Ireland 28.29 24.84 -12.2%

DMK Germany 27.36 24.71 -9.7%

Dairygold Ireland 27.85 24.63 -11.6%

DOC Cheese Netherlands 26.54 23.96 -9.7%

Glanbia Ireland 26.58 22.99 -13.5%

Average milk price 31.07 28.30 -8.9%

Hochwald eG Germany 31.04 26.36 -15.1%

Emmi Switzerland 53.51 47.46 -11.3%

Fonterra New Zealand 21.05 28.02 33.1%

United States class III USA 35.82 33.99 -5.1%

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

source: LTO (www.milkprices.nl)


Milk pricesThe decrease in market prices at the beginning of the year caused the milk price paid to dairy farmers to fall even further in the first half of 2016. This fall in milk prices had already started in 2014. The milk price was stable in June up to and including August, after which it recovered strongly as a result of the revival of the dairy market.

Given the late recovery of milk prices, the average milk price paid to milk farmers in 2016 ultimately fell for the second year in a row (-7%).



Dairy farmingMilk productionIn 2016, Dutch dairy farms produced more than 14.5 billion kg of milk, breaking the record for the year before. A total of no less than 1 billion kg of extra milk was produced, equating to a growth of more than 7%. With average milk production per cow at virtually the same level (8,300 kg) as that achieved in 2015, the growth in total milk production was achieved by substantially expanding dairy herd. According to the Central Bureau of Statistics (CBS) agricultural census for 2016, there were 1.75 million dairy cows, almost 8% more than in 2015. The growth in the dairy herd continued until the end of the year. The Netherlands had 1.8 million dairy cows at the beginning of December 2016.

The strong increase in the dairy herd in 2015 and 2016 led to a level of phosphate production that was well above the sector ceiling of 84.9 million kg. With the aim as to reduce phosphate production, the phosphate reduction plan entered into force in 2017. This will significantly reduce the number of dairy cows.

Dutch milk production and dairy cattle

Milk production

Dairy cows

Milk production (million kg)

1,300

1,400

1,500

1,600

1,700

1,800

2005 2006 2007 2008 2009 2011 2012 2013 20142010 2015 2016

Dairy cows (x 1,000)

Number of dairy farms in 2005: 23,527




10,000

11,000

12,000

13,000

14,000

15,000


source: Statistics Netherlands (CBS), RVO.nl, ZuivelNL

Size of scaleFor decades now, developments in the structure of dairy farming have been characte-rised by a decreasing number of farms and continuing increases in scale. According to CBS, the number of farms in business fell further to slightly less than 18,000 (-1.9%) in 2016. The average level of milk production per dairy farm reached a volume of 810,000 kg, which was 70,000 kg more than in 2015 (+9.5%). This increase was the result of the strong expansion of the dairy herd.

A significant increase in the number of cows per farm is also evident from the growth in the number of dairy farms with more than 150 dairy cows. In 2016, the number of businesses in this category increased from more than 1,900 to almost 2,500.

Dutch phosphate production in animal manure

Cattle slaughtering Netherlands

0

50

100

150

200

2011 2012 2013 20142010 2015 2016Cattle

Pigs

Poultry

Other

million kg

5,000

10,000

15,000

20,000

January December

2015 2016 2017number

source: RVO.nl

69.9% 21.7%8.4%

70.5% 21.1%8.4%

70.1% 22.2%7.7%

72.2% 20.0%7.8%

73.6% 18.8%7.6%

Outdoor grazing Partly outdoor grazing Other

2015

2016

2014

2013

2012

14 Dutch dairy in figures 2016 Dutch dairy in figures 2016 15

1-<30 koeien1.761 bedrijven

67.5%

3.0%

14.8%

5.8%7.0%

1.9%

herringbone parlour

automatic milking systems

parallel parlour

tied up stable

rotary parlour

tandem parlour

swingover parlour

Situation2005

Situation2016

41.0%20.0%

21,7%

6.9%4.8% 3.2% 2.4%




150 en meer koeien1.924 bedrijven

source: Foundation for Quality and Maintenance of Milking Installations

source: Sustainable Dairy Chain, ZuivelNL source: ZuivelNL, International Dairy Federation (IDF)

Milking parlours in the Netherlands

Outdoor grazing in the Netherlands

Classification according to parlour type Data based on the production of cow's milk and buffalo milk

Outdoor grazing: dairy cows graze in the meadows at last 120 days per year for a minimum of six hours per day

Milk production per country in 2015, in kg per capita

AsiaPakistan 223India 114Japan 58South Korea 43China 30Thailand 15Vietnam 8Indonesia 3Malaysia 3Philippines 0

Middle EastTurkey 222Israel 169Iran 98Saudi Arabia 67United Arab Emirates 5

OceaniaNew Zealand 4,767Australia 411

Other EuropeBelarus 741Switzerland 487Ukraine 231Russian Federation 212

South AmericaUruguay 682Argentina 275Brazil 173Chile 148Colombia 145Venezuela 70

AfricaAlgeria 94Kenya 84Egypt 61South Africa 61Nigeria 3

North and Central AmericaUSA 294Canada 252Mexico 92

EU-28Ireland 1,433Denmark 939Netherlands 798Lithuania 609Germany 403France 402Poland 340Belgium 330United Kingdom 239Italy 188Other 217

EU average 322

Per capita milk production worldwide:

107 kg



Milk processing industryDutch industrial dairy production

source: RVO.nl, ZuivelNL

2015 2016* 2016/2015

Milk delivered to factories 13,331 14,330 7,5%

Milk available for processing 13,307 14,000 5,2%

Drinking milk and other fresh milk products (excluding added ingredients, including cream) 985 1.000 1.6%

Cheese (including cottage cheese) 845 890 5.3%

Butter and butteroil 217 228 4.9%

Non-skimmed milk powder 136 163 20.1%

Skimmed milk powder 69 70 2.4%

Condensed milk (including coffee milk) 408 372 -8.8%

million kg

* based on the development in the monthly figures

International milk deliveries

source: Eurostat, RVO.nl, National Statistics

Milk deliveries in the leading exporting countries of the world

Volume 2016 Absolute growth compared to 2015

Relative growth compared to 2015

USA 96.4 1.7 1.8%

EU-28 151.7 0.4 0.2%

Netherlands 14.3 1.0 7.5%Ireland 6.9 0.3 4.0%Poland 11.1 0.3 2.4%Italy 10.8 0.1 1.2%Denmark 5.3 0.0 0.0%Belgium 3.9 -0.1 -2.8%Germany 31.3 -0.2 -0.5%France 24.7 -0.6 -2.5%United Kingdom 14.5 -0.6 -4.3%Other EU 28.9 0.3 0.9%

Uruguay 1.8 -0.2 -10.1%New Zealand 21.2 -0.4 -1.7%Australia 9.3 -0.7 -6.7%Brazil 23.9 -0.9 -3.7%Argentina 9.4 -1.4 -12.6%

billion kg

Milk deliveriesThe development of the global milk production volume had a major influence on the dairy market in 2016. Production continued to increase up to and including May 2016, but milk deliveries in the most important exporting countries fell significantly from June onwards. The US was an exception to the above, achieving growth throughout the year. Despite the sharp decrease in EU milk deliveries from June onwards, the volume still increased by 0.2% on balance, due to the strong start at the beginning of the year. The biggest increase, in both absolute and relative terms, was recorded in the Netherlands. Ireland and Poland achieved increases too. By contrast, milk deliveries in Germany, France and the United Kingdom decreased.

Milk processingIn 2016, the Dutch dairy industry processed an estimated 14 billion kg of milk, more than 5% higher than in 2015. Much of the extra milk was used to produce cheese and non-skimmed milk powder. Cheese production increased by more than 5% to a volume of 890,000 kg. Non-skimmed milk powder production increased by 20%, following significant capacity expansion.

Drinking milk and other fresh milk products 7.1%

Cheese 55.4%

Butter and butteroil 1.6%

Milk powder 13.7%

Condensed milk 5.6%

Other 16.6%

Utilization of Dutch milk 2016

Source: RVO.nl, ZuivelNL

Meppel

Rouveen

Gerkesklooster

Bolsward

Nunspeet

Gorinchem

Workum

Ommen

Hengelo

Zelhem

Katwoude

Dalfsen

Schoonrewoerd

Zoetermeer

Cuijk

Rijkevoort

Bedum

Lutjewinkel

Bleskensgraaf

Maasdam

Rotterdam

Nuenen

Den Bosch

MolenschotVeghel

Born

MarumNoordwijk

Leeuwarden

Beilen

BalkbrugKampen

Borculo

Lochem

Nijkerk

Steenderen

Hoogeveen

Coevorden

Lelystad

Zeewolde

Boxmeer Etten-Leur

Sloten

Heerenveen

Well

Beek

Beemster

Scharsterbrug

Dronrijp

FrieslandCampina 21Ausnutria Hyproca 2A-ware 2Bel Leerdammer 2DOC Kaas 2Henri Willig 2Nutricia 2Rouveen Kaasspecialiteiten 2Vreugdenhil Dairy Foods 2Arla Foods - Nijkerk CONO Kaasmakers - Beemster Delta Milk - Bleskensgraaf Den Eelder - WellDVNutrition - HoogeveenEijssen Dairy - BeekFarm Dairy - LelystadFonterra - HeerenveenGlobemilk - BoxmeerHochwald - BolswardNestlé - NunspeetKaasmakerij Özgazi - Etten-LeurSloten - SlotenVecozuivel - ZeewoldeVIV Buisman - ZelhemZuivelhoeve - Hengelo

Geographical spread of milk processing industry

source: RVO.nl, ZuivelNL

2014 2015 2016Companies(process more than 10 million kg of raw milk, cream and/or whey)

23 25 25

Number of dairy plants 53 54 53

- Cooperative 29 28 27

- Non-cooperative 24 26 26

Milk processed (million kg) 12,608 13,307 14,000

Production value (€ million) 6,850 6,425 6,400

Key statistics

Situation from 31-12-2016


Top 20 largest dairy companies

Concern Land Zuivelomzet (€ mrd)

1 Nestlé Switzerland 22.5

2 Lactalis France 16.5

3 Danone France 15.1

4 Dairy Farmers of America USA 12.4

5 Fonterra New Zealand 11.8

6 FrieslandCampina Netherlands 11.1

7 Arla Foods Denmark/Sweden 9.4

8 Yili China 8.4

9 Saputo Canada 7.8

10 Dean Foods USA 7.2

11 Mengniu China 7.1

12 Unilever Netherlands/UK 6.3 *

13 Kraft Heinz USA 5.9

14 Sodiaal France 5.1

15 Müller Germany 5.0 *

16 DMK Germany 5.0

17 Meiji Japan 4.6

18 Schreiber Foods USA 4.5 *

19 Savencia France 4.4

20 Agropur Canada 4.1

source: Rabobank

Turnover in 2015 + mergers and acquisitions between 1 January and 30 June 2016

StructureAt the end of 2016, the Dutch dairy processing industry consisted of 25 companies with a total of 53 production locations. Five of these companies are cooperatives. They process milk in 27 factories.

The production value achieved in 2016 was € 6.4 billion, virtually the same as the level for the previous year. Like in 2014 and 2015, the strong increase in the processed milk supply did not lead to an increase in production value because of the lower price levels applicable in the market. The production value was € 45.71 per 100 kg of processed milk, more than 5% lower than in 2015.

*estimate


ExportsIn 2016, the total export value increased by almost 3% to an amount of more than € 6.4 billion. Export figures varied among the different product groups. The export value of cheese, butter and oil and non-skimmed milk power increased, while the export value of skimmed milk powder, condensed milk and whey and whey products decreased.

In 2016, the Dutch export volume for cheese increased by almost 9% to 913,000 tons. Most of the extra volume generated was sold in the EU. More cheese was exported to third countries too, particularly to countries in Central and South America and non-EU Europe. Thanks to the significant increase in volume, the effect of the lower price level on average was offset. The value of cheese exports was just under € 3.2 billion (+2.1% in comparison with 2015), representing almost half of the total export value.

The significantly higher export volume for butter and butter oil and non-skimmed milk powder also resulted in an increase of the export value, despite the on average lower price level. The export value of skimmed milk powder fell due to a significant reduction in volume. The average price level of skimmed milk powder was virtually the same as the year before.

Trade

Dutch export value per destination 2016

Dutch exports by region of destination in milkequivalents 2016Exports of cheese, butter and butteroil, fermented products, concentrated milk, milk and cream, whey and whey products and products with milk constituents (HS-codes 0401-0406 and 17021)

European Union€ 4.6 billion

Third countries€ 1.8 billion

Germany 37%

Other third countries 54%

Belgium 20%

Japan 5%

Saudi Arabia 5%

Kuwait 4% Egypt 3%

South Korea 5%

USA 6%

Algeria 4%

United Arab Emirates 5%

China (incl. Hong Kong) 9%

France 14%

Spain 5%

Greece 3%Sweden 3%

Italy 4%

United Kingdom 5%

Other EU 9%



0

2,000

4,000

6,000

8,000

10,000

EU-28

71.2%

7.8%3.2%

1.3% 0.9% 0.4% 0.6%

14.6%

Asia Africa Central and South America

OtherEurope

North America Oceania Other

million kg

The EU is by far the most important sales region for Dutch dairy products. In 2016, intra-trade represented more than 72% (€ 4.6 billion) of the total export value. A total of 37% and 20% of intra-trade was achieved in the neighbouring countries Germany and Belgium respectively and 14% in France.

The Netherlands is also the most active of all EU Member States in the global market, with a share of 5% in global trade. This makes the Netherlands the fifth biggest dairy exporter in the world, after New Zealand, the United States, Australia and Belarus. The most important destinations for Dutch dairy exports outside the EU are China (including Hong Kong), the United States and Saudi Arabia.

Besides exporting regular dairy products, other products with a high dairy content are sold too, for example baby food. Baby food exports are an important part of sales realized by the Dutch dairy sector. Almost 268,000 tons of baby food were exported in 2016. Slightly less than 113,000 tons of it was shipped to China (including Hong Kong).

Germany Belgium France Denmark Other

GermanyIreland FranceBelgium Other

Belgium Germany Czech Republic Spain Other

0

40

80

120

160

0

15

30

45

60

0

45

90

135

180

million kg

million kg

million kg

United Kingdom 5%

Belgium 20%

Ireland 8%

Italy 4%Denmark 4%

Other 12%

France 10%

Germany 37%

Import value2016: €2.6 billion

Milk and cream (in small packages for consumers)Total imports: 345 million kg

Butter and butteroilTotal imports: 133 million kg

CheeseTotal imports: 315 million kg



Imports

Countries of origin of Dutch imports

source: Eurostat

Countries of origin of Dutch imports for different product categories 2016

Germany Belgium France Denmark Other

GermanyIreland FranceBelgium Other

Belgium Germany Czech Republic Spain Other

0

40

80

120

160

0

15

30

45

60

0

45

90

135

180

million kg

million kg

million kg

United Kingdom 5%

Belgium 20%

Ireland 8%

Italy 4%Denmark 4%

Other 12%

France 10%

Germany 37%

Import value2016: €2.6 billion

Milk and cream (in small packages for consumers)Total imports: 345 million kg

Butter and butteroilTotal imports: 133 million kg

CheeseTotal imports: 315 million kg

Top 5 exporting countries 2016

Cheese Butter and butteroilindex index

EU 1) 802 111.3 New Zealand 502 100.5 of which Netherlands 140 103.8 EU 1) 194 120.0New Zealand 355 108.7 of which Netherlands 33 113.2USA 287 90.6 Belarus 84 95.6Belarus 204 111.9 Australia 33 93.1Australia 170 99.6 USA 25 108.3

Total 2,315 105.8 Total 949 102.5

Non-skimmed milk powder Skimmed milk powderindex index

New Zealand 1,345 97.5 EU 1) 574 83.0EU 1) 373 99.2 of which Netherlands 55 76.9

of which Netherlands 138 114.4 USA 567 101.3Uruguay 127 130.3 New Zealand 444 107.9Argentina 109 79.3 Australia 166 81.7Australia 74 112.7 Belarus 111 91.2

Total 2,103 98.9 Total 2,152 97.21) excluding intra trade

Position of Dutch dairy exports on the world market 2016

Other 15.8%

New Zealand 27.7%

USA 14.1%

Australia 5.9%

Argentina 2.4%Uruguay 2.3%

Belarus 5.5%

EU 26.3%

Dutch exports to third countries: 3.6 billion kg % of world trade: 5.0%

The Netherlands 5.0%

Germany 4.6%

France 4.3%

Belgium 1.9%

Denmark 1.6%

Poland 1.7%

Ireland 1.5%

Other EU 5.7%

Export shares of the most important dairy exporting countries (total world trade 2016: 71,5 billion kg milk equivalent)

source: Statistics Netherlands (CBS), Eurostat, Comtrade, ZuivelNL

source: Eurostat, Comtrade

million kg, index (2015=100)index (2015=100)

Breakfast27%

Lunch25%

Dinner27%

Inbetween21%



Consumption Dutch dairy consumption

Dutch dairy consumption out of home Dutch dairy consumption by moment of intake

Food and non-alcoholic beverages:

€ 34.6 billion

Total consumption spending

€ 301.8 billion

Potatoes, vegetables and fruit € 6.7 billion

Meat and meat products € 6.7 billion

Bread and bakery products € 7.2 billion

Dairy, eggs, oil and fats € 4.9 billionOther foods € 9.1 billion


Consumption spending of Dutch households 2015

Dairy in the Wheel of Five

(Dutch dietary guidelines) with milk, cheese

and yoghurt

Dairy is an important part of the Dutch traditional diet. Milk, cheese, yogurt and dairy desserts continue to be part of the daily diet of many people in the Netherlands. The Netherlands Nutrition Centre has acknowledged the fact that dairy is healthy by giving it a prominent place in the Wheel of Five, a tool used to support education about healthy eating.

Since long, per capita cheese consumption in the Netherlands has stayed above the European average. On average, the Dutch eat about 20 kg of cheese per year. The share of dairy in Dutch household spending on food and non-alcoholic drinks has been more or less stable at 14% for many years. In 2015, this represented about € 4.9 billion, or 1.6% of total consumer spending.

Grams per day, total population 1-79 years

By age, % of total consumption

Total population 1-79 years

0 40 80 120 160

Drinking milk and milk drinks

Yogurt

Cheese

Desserts

Ice cream *

Cottage cheese

Coffee milk *

Other *

Buttermilk and yogurt drinks

total:355 grams per day

1-8 years 9-18 years 19-50 years 51-79 years0%

5%

10%

15%

20%

25%School and work RestaurantOutdoors and traveling Other

* including non-dairy related constituents

grams

source: Food consumption survey 2012-2016 RIVM


OrganisationsDairy 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 Association (NZO), traders by the organisation of Dutch Dairy Traders (Gemzu) and retailers by the Dutch Food Retail Association (CBL).

Chain organisation ZuivelNLAt the initiative of NZO and LTO the private chain organisation ZuivelNL was established in January 2014. ZuivelNL is an association formed by NZO, LTO and NMV in which other organisations linked to the dairy sector can participate. The mission of ZuivelNL is to strengthen the Dutch dairy supply chain with respects to the environment and the interests of society. ZuivelNL is active in fields where cooperation between the segments of the dairy sector will create added value. The ZuivelNL programme of work focuses on the following areas:

Food safety Monitoring and research of raw milk quality

Animal health Monitoring, research and prevention of animal disease

Sustainability Sustainable Dairy Chain (Duurzame Zuivelketen) aims to make the Dutch dairy sector world leader in sustainability

Research & innovation Applied and strategic research in the interest of dairy farmers, including knowledge exchange and innovation

Labour issues Technical knowledge retention, working environment

Export Veterinary issues, trade regulations and foreign market access, normalisation

NNC-IDF Netherlands National Committee of the International Dairy Federation (IDF)

Market information Commission Official Dutch Dairy Quotations, international milk price comparison, statistics

Education Websites on dairy education, teaching materials, farm visits

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 Association: association of the Dutch dairy industry www.nzo.nl

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

www.gemzu.nl

CBLCentraal Bureau Levensmiddelenhandel: branchevereniging voor de supermarkt-branche en food service bedrijven

www.cbl.nl

Other categories

ZuivelNL

Dairy 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

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 certifi-cation 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.gdanimalhealth.com

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

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

www.rvo.nl

IDFThe International Dairy Federation (IDF) forms a global expert network active in nearly all fields of relevance to dairy

www.fil-idf.org

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