Dutch dairy in figures 2018 · the dairy industry, aimed at capacity growth through modernisation, expansion and new construction. However, the strong growth in dairy farming led

Dutch dairy in figures

2018

Dutch dairy in figures 2018 3

2 Dutch dairy in figures 2018

The Netherlands: land of dairyModern sectorThe Netherlands is a dairy country with a long tradition of milk, butter and cheese production and consumption. The characteristic meadow landscape with cows and windmills is inextricably linked to the image of our country. Behind this image lies a modern sector, with an eye for people, animals and the environment. It is one of the largest and most vital agricultural sectors in the Netherlands and makes an important contribution to the Dutch economy.

From local traditions to an international businessThe strongly 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 milk quotas in Europe in the early 1980s marked a new phase in the development of the dairy sector. Quotas curbed the productivity improvement in dairy farming through economies of scale. This led to an accelerated development in business efficiency through a steadily declining dairy herd and a growing production per cow. Also in the dairy industry, the limits imposed on the quantity of milk gave an extra boost to the pursuit of greater efficiency, as a result of which the Dutch dairy industry became one of the most consolidated in the world.

Phosphate ceilingThe abolition of milk quotas at the end of March 2015 and the long-term promising developments in the global dairy market boosted new investments in dairy farming and the dairy industry, aimed at capacity growth through modernisation, expansion and new construction. However, the strong growth in dairy farming led to an overshoot of the phosphate production ceiling set by the European Commission for the Netherlands in 2015 and 2016. In order to reduce phosphate production, the phosphate reduction plan came into effect in 2017 and the phosphate rights system became applicable from 1 January 2018. As a result of these measures the dairy herd has decreased significantly in the past two years and there will be little room for growth in milk production in the coming years.

Dutch dairy in figures 2018Dutch 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 2018 The figures for the year 2018 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] 2019

Drinking milk and other fresh milk products 7.3% Cheese 54.8%

Butter and butteroil 1.6%

Milk powder 13.8%

Condensed milk 5.1%

Other 17.4%

Milk processing

Outdoor grazing at 82% of the dairy farms

Contribution to trade surplus: 7%

Dairy consumption355 grams per day

Breakfast27%

Lunch25%

Dinner27%

In-between21%

Contribution to trade surplus: 7%

17 thousand dairy farms

Export revenues € 7.7 billion

1.6 million dairy cows

0.4 million dairy goats

1.1 million hectares of grassland and maize

49 thousand fte's in dairy farming and

milk processing industry

27% of the surface area of the Netherlands

Outdoor grazing at82% of the dairy farms

Cow milk production 14.1 billion kg

Goat milk production 0.4 billion kg

Production value

€ 7.5 billion milk processing industry

€ 5.0 billion dairy farming

25 companies and 53 dairy plants

4 Dutch dairy in figures 2018 Dutch dairy in figures 2018 5source: ZuivelNL, RVO.nl, Statistics Netherlands (CBS), Eurostat, Sustainable Dairy Chain, RIVM

Dutch dairy at a glance

IMPORTSEXPORTS

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%)

Total€ 441.9 billion

Total€ 495.9 billion

Dairy products€ 3.8 billion

Agricultural products€ 60.9 billion

Agricultural products€ 87.6 billion

Dairy products € 7.7 billion



Economic importance Trade balance 2018

Number of employees European milk processing industry 2017

source: Statistics Netherlands (CBS), Eurostat

source: Eurostat

source: Eurostat source: Eurostat, Statistics Netherlands (CBS), national statistics

Gross production value Dutch agriculture

Gross production value dairy farming EU 2018

2015 2016 2017 2018 2015 2016 2017 2018

Horticulture 10.2 10.1 10.3 10.5 37.9% 37.1% 35.6% 36.5%

Livestock, meat and eggs 5.5 5.6 5.9 5.7 20.6% 20.6% 20.3% 19.8%

Dairy farming 4.4 4.6 5.5 5.0 16.3% 16.8% 18.9% 17.4%

Arable farming 3.1 3.4 3.5 3.7 11.6% 12.3% 12.2% 12.9%

Other 3.7 3.6 3.8 3.8 13.6% 13.2% 13.0% 13.4%

Total 26.9 27.2 28.9 28.7 100.0% 100.0% 100.0% 100.0%

value (billion €) % share

Germany 12.1%

France 16.9%

Poland 10.4%United

Kingdom 7.1%Spain 6.4%

Other EU 28.1%

The Netherlands 4.4%

Ireland 2.6%Denmark 2.5%

Italy 9.4%

Total EU-28: ± 305 thousand fte

Value (billion €) and subdivision of the share in total gross production value agriculture (%)

LU 0.1

IE 2.5

EE 0.2

LV 0.3

LT 0.4

SI 0,2

SK 0.3

PT 0.7

EL 1.0

BG 0.4IT 4.9

HR 0,2

HU 0.6

ES 3.1

RO 1.0FR 9.2

DE 11.1

CZ 1.0

AT 1,3

SE 1.1

VK 5.0

BE 1.3PL 4.0

MT 0.0

DK 2.1

CY0.2

FI 1.1% share

30-3525-3020-2515-2010-15 5-10

NL 5.0

0 200 400 600 800 1,000

IrelandThe Netherlands

DenmarkFrance

BelgiumGermany

ItalyPolandSpain

United Kingdom

874 824 668 636 412 344 327 218 202 177

EU-28327

Dairy turnover processing industry per capita EU 2017

€

source: Eurostat

*) 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)

Positive trade balanceTotal € 54.0 billionAgricultural products € 26.7 billion

Dairy products *) € 3.8 billion

0

100

200

300

400skimmed milk powderbutter

Jan-

05

Jul-0

5

Jan-

06

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6

Jan-

07

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7

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08

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8

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5

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16

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6

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Jul-1

8

Jan-

19


Market overviewMarket pricesIn 2018, the dairy market was to a large extent determined by very low protein prices, the reduction of the large intervention stocks of skimmed milk powder and the drought du-ring the summer. The fat prices no longer reached the sky-high levels of 2017, but were well above the long-term average. After the significant price correction in the fourth quarter of 2017, the butter price reached the bottom in mid-January at a level just above € 400 per 100 kg. This was followed by an almost continuous period of increase until the end of May. This was the result of good demand, limited production and low stock levels. From June onwards, the butter market came under pressure. Buyers became reluctant because of the high prices and there was plenty of supply. In August, the price temporarily recovered due to the dry weather conditions. After the sentiment around the drought had disappeared from the market, the butter price fell from September to the beginning of December.

The Dutch quotation of skimmed milk powder decreased further in the first quarter of 2018. This was caused by an oversupply in combination with the still high level of intervention stocks, which were sold at a slow pace during this period. At the beginning of April, the record low of € 127 per 100 kg was reached, a quarter below the intervention price level. From the beginning of April to mid-June, the price rose sharply, despite the release of relatively large quantities of intervention powder. Prices fluctuated from the second half of June to the beginning of October. Prices fell in the period up to the end of July and in September due to a drop in demand and the large volumes of intervention powder released. In the meantime, there was a temporary upturn in August due to the drought. In the fourth quarter, the market continued its path to recovery. Increasing interest from the world market in cheap European skimmed milk powder and the demand from various large end users led to an increase in the price and a growing interest in the purchase of milk powder from intervention.

Overall, the average price level in 2018 was lower than in 2017. The average Dutch quotation of butter fell by more than 4%. The average Dutch quotation for skimmed milk powder decreased by almost 15% in 2018. The average price of whey powder also fell sharply (-11%). The average prices of whole milk powder and cheese largely followed the developments in the fats and proteins market and were 6% lower than in 2017.

0

150

300

450

600

750 butter: max € 698.00

butter: min € 205.00

skimmed milk powder: max € 383.00

skimmed milk powder: min € 127.00

skimmed milk powderbutter

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Jan-

14

Jul-1

4

Jan-

15

Jul-1

5

Jan-

16

Jul-1

6

Jan-

17

Jul-1

7

Jan-

18

Jul-1

8

Jan-

19

source: ZuivelNL

Dutch quotation for butter and skimmed milk powder

€ per 100 kg ex-factory, excluding vat


Intervention stocks EU

million kg

source: EU Milk Market Observatory

€ 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)

2018 499.29 268.54 149.12 132.13 69.652017 521.48 285.25 174.58 164.35 78.402016 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 source: ZuivelNL

2010 2015 2016 2017 2018 2010 2015 2016 2017 2018 2010 2015 2016 2017 201895

100

105

110

115

120

total spending food milk, cheese and eggs(butter excluded)


Consumer prices

Average Dutch consumer prices

Development of Dutch consumer price indices

source: Statistics Netherlands (CBS)

2010 2015 2016 2017 2018 Matured Gouda cheese (1 kg) 8.80 7.19 6.94 10.22 10.98

Semi-skimmed milk (1 litre) 0.64 0.77 0.76 0.90 0.90

Butter, unsalted (250 gr) 1.04 1.28 1.26 1.69 2.04

Vanilla custard (1 litre) 0.86 0.96 0.96 1.03 1.04

Average 2010 = 100

Relative development compared to 2017

index

€

The NetherlandsDenmark

ItalyIreland

GermanyFrance

EUUnited Kingdom

BelgiumPolandSpain

-5.0%-2.6%

-3.1%-3.8%

-4.7%+0.7%

-2.1%+1.6%

-8.2%-1.2%

+0.9%28 30 32 34 36 38

source: European Commission

Average milk price paid EU 2018

International milk price comparison per dairy company€ per 100 kg

Company Country 2017 2018 2018/2017

Granarolo (North) Italy 39.81 38.36 -3.6%

Valio Finland 36.64 36.74 0.3%

FrieslandCampina Netherlands 38.56 36.07 -6.5%

Arla Foods DK Denmark 36.46 35.48 -2.7%

Royal A-ware Netherlands 37.95 35.13 -7.4%

Sodiaal (Pas de Calais) France 34.37 34.93 1.6%

Danone (Pas de Calais) France 34.47 34.55 0.2%

Lactalis (Pays de la Loire) France 33.55 33.98 1.3%

Hochwald Milch eG Germany 34.08 33.74 -1.0%

Savencia (Basse Normandie) France 33.93 33.69 -0.7%

Müller (Leppersdorf) Germany 35.38 33.02 -6.7%

DMK Deutsches Milchkontor eG Germany 35.65 32.91 -7.7%

Dairygold Ireland 34.26 32.75 -4.4%

Milcobel Belgium 35.75 32.72 -8.5%

Dairy Crest (Davidstow) United Kingdom 32.65 32.67 0.1%

Glanbia Ireland 34.31 32.59 -5.0%

Kerry Agribusiness Ireland 34.31 32.51 -5.3%

Average milk price 35.42 34.23 -3.4%

Emmi Switzerland 51.88 48.25 -7.0%

Fonterra New Zealand 31.63 29.40 -7.1%

USA class III USA 36.22 31.49 -13.1%Note: prices for standard milk with 4.2% fat and 3.4% protein with an annual delivery of 1,000,000 kg milk (excluding VAT, including supplementary payments and excluding premiums for special milk flows)

source: LTO (www.milkprices.nl)

Milk pricesIn the first two months of 2018 milk prices fell rapidly. This was due to the strong correction of both fat and protein prices in the last quarter of 2017. In the months of March to May milk prices decreased slightly. From June to the end of the year the milk price rose slowly, mainly as a result of the further increase in protein prices.

According to the European Commission, the average milk price paid to dairy farmers in the Netherlands in 2018 fell by 5%.


€ per 100 kg


12 Dutch dairy in figures 2018 Dutch dairy in figures 2018 13

Dairy farmingMilk productionIn 2018, Dutch milk production fell by almost 3% to a volume of 14.1 billion kg. Since February there has been a decline in milk production, which accelerated from August onwards. This was partly due to the extra culling of cattle to comply with the phosphate rights system. For the second year in a row, the dairy herd shrank sharply. According to Statistics Netherlands (CBS), there were 1.62 million dairy cows in the Netherlands at the beginning of April 2018, more than 70,000 fewer (-4%) than in 2017. The decline in the dairy herd continued until the end of the year. At the beginning of December 2018, there were 1.55 million dairy cows. Dutch dairy farmers managed to somewhat limit the decline in milk production by increasing the milk yield per cow. In 2018, the average yield was 8,685 kg per cow, more than 1% higher than in the previous year.

The sharp decline in the dairy herd in the past two years led to the phosphate production in 2018 (77.4 million kg) falling well below the sector ceiling of 84.9 million kg of phosphate.

ScaleFor decades, the structural development of dairy farming has been characterised by a decreasing number of dairy farms and a continuing increase in scale. According to Statistics Netherlands (CBS), the number of dairy farmers at the beginning of April 2018 was nearly 17,000, more than 7% fewer than in 2015. In 2018, an average dairy farm produced 830,000 kg of milk with 96 dairy cows. This was over 12% more than in 2015, when an average dairy farm had 89 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

2011 2012 2013 20142010 2015 2016 2017 2018

dairy cows (x 1,000)

Number of dairy farms in 2010: 19,805



10,000

11,000

12,000

13,000

14,000

15,000

bron: CBS, RVO.nl, ZuivelNL

Cattle slaughtering Netherlands

2016number

January July December

2017

2018

4,000

0

8,000

12,000

16,000

20,000

source: RVO.nl

Structure figures the Netherlands 2018

Cow milk Goat milk Sheep milk Buffalo milk TotalMilk productionmillion kg 14,085 387 6 1 14,479

Dairy farmsnumber 16,963 550 130 7 17,650

Dairy cattlex 1,000 1,622 387 11 1 2,020

Average milk yieldper animal in kg 8,684 1,000 500 2,200

Classification by type of milk

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

surface grassland (km2)

surface maize (km2)

dairy cows (x 1,000)

dairy cows per km2 grassland

dairy farms

20,000

0

40,000

60,000

80,000

100,000 €

2005 2006 2007 2008 2009 2011 2012 2013 20142010 2015 2016 2017 2018

-20

0

20

40

60

80

100

dairy farming, total organic dairy farming


source: Wageningen University & Research

source: Statistics Netherlands (CBS), ZuivelNL

Dutch dairy farms, income development per farm Key figures dairy farming per province

Noord-Holland2010 2018

683 63651 4477 88

113 1391,091 971

Friesland2010 20181,779 1.741

192 161266 302149 173

2,966 2,659

Drenthe2010 2018

633 615207 169

93 107147 174

1,153 998

Flevoland2010 2018

126 14136 3330 35

237 247284 251

Zuid-Holland2010 2018

722 64852 5396 102

133 1571,472 1,229

Gelderland2010 20181,565 1.471

425 381226 241145 164

3,413 2,862

Overijssel2010 20181,396 1,359

417 358241 259173 191

3,523 3,023

Noord-Brabant2010 2018

969 883561 525211 222217 251

2,731 2,238

Zeeland2010 2018

155 17848 5517 23

111 127239 216

Limburg2010 2018

313 278149 145

48 51154 184630 523

Dutch phosphate production in animal manure

Dutch nitrogen production in animal manure

0

100

200

300

400

500

600 million kgdairy farming

Sector ceiling dairy farming

281.8 million kg

2011 2012 2013 20142010 2015 2016 2017 2018

other

0

50

100

150


Sector ceiling dairy farming 84.9 million kg

2011 2012 2013 20142010 2015 2016 2017 2018

other

0

100

200

300

400

500


Sector ceiling dairy farming

281.8 million kg

2011 2012 2013 20142010 2015 2016 2017 2018

other

0

50

100

150


Sector ceiling dairy farming 84.9 million kg

2011 2012 2013 20142010 2015 2016 2017 2018

other



Total Netherlands2010 20189,508 9,0702,308 2,0561,479 1,622

156 17919,805 16,963

Groningen2010 2018

618 614101 76

90 106145 172996 893

Utrecht2010 2018

548 50569 5783 86

151 1691,307 1,100

2017 2018* 2018/2017

Milk delivered to factories 14,296 13,879 -2.9%

Milk available for processing 14,143 14,000 -1.0%

Drinking milk and other fresh milk products (excluding added ingredients, including cream) 984 1,017 +3.4%

Cheese (including cottage cheese) 874 888 +1.5%

Butter and butteroil 227 223 -1.6%

Non-skimmed milk powder 184 161 -12.4%

Skimmed milk powder 66 68 +2.7%

Condensed milk (including coffee milk) 367 344 -6.3%



Milk processing industry Dutch industrial dairy production

source: RVO.nl, ZuivelNL

million kg

* based on the development in the monthly figures

Development of milk deliveries in major exporting countries

Utilization of milk in key countries 2018

source: Eurostat, RVO.nl, national statistics

Argentina, Australia, Canada, Chile, EU-28, New Zealand, Turkey, Uruguay and the USA

Relative share per product in total milk processing

Milk deliveriesIn 2018, milk deliveries in the main dairy exporting countries increased by 1.4%. Growth took place in the first three quarters of the year. Volume stagnated in the last quarter. The US showed growth throughout the year. New Zealand's milk deliveries declined in the first quarter and then increased in the remainder of the year. The Australian volume shrank sharply from June onwards due to the severe drought. The EU milk supply increased up to and including August, after which it decreased from September onwards due to the drought period in the summer. Despite the drought, overall volume in the EU increased by almost 1% in 2018. Germany, Ireland and Poland showed the largest absolute increase. Milk deliveries in France were slightly lower. The Netherlands recorded the largest decrease within the EU, as a result of the introduction of the phosphate rights system.

Milk processingThe Dutch dairy industry processed an estimated 14.0 billion kg of milk in 2018, 1% less than in 2017. Less milk was used in the production of non-skimmed milk powder (-12%), condensed milk (-6%) and butter and -oil (-2%). Cheese production, on the other hand, increased by almost 2% to a volume of 888,000 tonnes. There was also an increase in the production of skimmed milk powder (+3%).

cheesedrinking milkskimmed milk powdernon-skimmed milk powderbutter and butteroilother

Australia

31%

27%

22%

7%1%

12%

EU-28

39%

19%

11%4%1%

26%

The Netherlands

55%

9%5%4%2%

25%

New Zealand

54%

3%

19%

15%

3%

6%

Uruguay*

50%

20%

12%

8%1%

9%

USA

47%

22%

12%

1% 1%

17%

source: Eurostat, USDA, ZuivelNL, national statistics0 50 100 150 200

0

2

4

6

8

10

12

14

270

280

290

300

310

320

330

Cumulative (relative mutation compared to the year before)

Overview per exporting country 2018 (relative mutation compared to 2017)

+1,4%

+1,5%

-0,0%+2,2%

+4,1%

-0,0%+2,1%

+3,0%

+1,9%

2011 2012 2013 20142010

EU-28Germany

FranceUnited KingdomThe Netherlands

ItalyPolandIreland

SpainDenmarkBelgium

OtherUSA

New ZealandArgentina

TurkeyCanada

AustraliaChile

Uruguay2015 2016 2017 2018

billion kg

billion kg

+0.9%+1.5%

-0.2%+0.2%-2.9%+1.2%+2,.6%

+4.4%+1.5%+2.5%+4.2%

+0.7%+1.0%

+2.3%+4.2%+10.1%+2.8%-1.8%

+1.7%+4.5%

* Year 2017

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

Westbeemster

Scharsterbrug

Dronrijp

FrieslandCampina 21Ausnutria 2A-ware 2Bel Leerdammer 2DOC Kaas 2Kaasmakerij Henri Willig 2Nutricia 2Rouveen Kaasspecialiteiten 2Vreugdenhil Dairy Foods 2Arla Foods - Nijkerk CONO Kaasmakers - Westbeemster De Graafstroom - Bleskensgraaf Den Eelder - WellDVNutrition - HoogeveenEijssen Dairy - BeekFarm Dairy - LelystadFonterra - HeerenveenGlobemilk - BoxmeerHochwald Foods - BolswardNestlé - NunspeetKaasmakerij Özgazi - Etten-LeurTrouw Nutrition - SlotenVecozuivel - ZeewoldeVIV Buisman - ZelhemZuivelhoeve - Hengelo

Geographical spread of milk processing industry

source: RVO.nl, ZuivelNL

2016 2017 2018Companies(process more than 10 million kg of raw milk, cream and/or whey)

25 25 25

Number of dairy plants 53 53 53

- Cooperative 27 27 27

- Non-cooperative 26 26 26

Milk processed (million kg) 14,172 14,143 14,000

Production value (€ million) 6,400 7,725 7,525

Key statistics

Situation from 31-12-2017


Top 20 largest dairy companies

Concern Country Revenue (billion €)

1 Nestlé Switzerland 21.4

2 Lactalis France 17.7 *

3 Danone France 15.5

4 Dairy Farmers of America USA 13.0

5 Fonterra New Zealand 12.1

6 FrieslandCampina Netherlands 12.0

7 Arla Foods Denmark/Sweden 10.3

8 Saputo Canada 9.6

9 Yili China 8.8

10 Mengniu China 7.8

11 Dean Foods USA 6.7

12 Unilever Netherlands/United Kingdom 6.2 **

13 DMK Germany 5.8

14 Kraft Heinz USA 5.5

15 Meiji Japan 5.1

16 Sodiaal France 5.1

17 Savencia France 4.9

18 Müller Germany 4.5 **

19 Agropur Canada 4.5

20 Schreiber Foods USA 4.4 **

source: Rabobank*excluding the planned acquisition of Itambé** estimate

Turnover in 2017 + mergers and acquisitions between 1 January and 30 June 2018

StructureAt the end of 2018, the Dutch dairy industry consisted of 25 companies with a total of 53 production locations. Five of these companies are cooperatives. They process the milk in 27 plants.

The production value fell by almost 3% in 2018 to an estimated € 7,525 million. This reflected the decline in revenue on the dairy market. Milk powder, in particular, yielded considerably less. This was caused by the average lower price level, which was reinforced for non-skimmed milk powder by the sharply reduced production. Per 100 kg of milk processed, the production value was € 53.75, almost 2% lower than in 2017.


Trade

Dutch export value per destination 2018

European Union€ 5.7 billion

Third countries€ 2.0 billion

Germany 33%

Other third countries 48%

Belgium 22%

Japan 6%

United Arab Emirates 4%

Kuwait 4%

Indonesia 2% Qatar 2%

Saudi Arabia 4%

USA 4%

Nigeria 3% Algeria 3%

South Korea 5%

China (incl. Hong Kong) 12%

France 16%

Spain 5%

Greece 3%Poland 3%

Italy 5%

UnitedKingdom 5%

Other EU 9%

source: ZuivelNL, Eurostat, Statistics Netherlands (CBS)

ExportThe total export value fell by more than 2% in 2018 to an amount of almost € 7.7 billion. With the exception of butter and -oil, whose value increased by almost 5%, a decrease was observed in all major product groups. In particular, the export value of non-skimmed milk powder and also cheese showed a sharp decline in absolute terms. There was also a decline for skimmed milk powder.

The export value of cheese fell by almost 3%, which was the result of lower prices and a decrease in the volume exported. The latter amounted to almost 884,000 tonnes, 2% less than in 2017. This was entirely due to a decrease in intra trade. Sales were lower in Germany, Belgium and Greece in particular. Third country exports increased slightly. Growth was achieved in Africa, Asia and North America. Less cheese was exported to Central and South America and Oceania.

For non-skimmed milk powder, the fall in the export value was the result of an average lower price level in combination with a sharply reduced volume (-15%). The Dutch export volume of skimmed milk powder increased by no less than 18% in 2018. In particular, exports to third countries increased significantly. The European and Dutch supply was competitive on the world market due to the very low price level. However, the strong increase in volume could not fully compensate for the effect of the significantly lower prices, which eventually also reduced the export value of this product.

Dutch exports by region of destination in milk equivalents 2018Share per region of destination in total exports (%)

Exports 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)

0

2,000

4,000

6,000

8,000

10,000

EU-28

69.1%

7.9%

3.5%1.2% 0.9% 0.7% 0.2%

16.6%

Asia Africa Central andSouth America

OtherEurope

North America Oceania Other

mln kg

The EU is structurally the most important sales region for Dutch dairy products. In 2018, intra trade accounted for almost € 5.7 billion, about three-quarters of the total export value. Germany, Belgium and France, with a combined share of over 70%, are the most important markets in the EU.

Of all the EU Member States, the Netherlands is also the most active on the world market. The Dutch share in world trade, which amounted to 79.0 billion kg of milk equi-valents in 2018, was 5%. This makes the Netherlands the fifth largest dairy exporter in the world, after New Zealand, the United States, Australia and Belarus. The top five des-tinations for Dutch dairy exports outside the EU in 2018 were all in Asia, namely China (including Hong Kong), Japan, South Korea, the United Arab Emirates and Saudi Arabia.

source: Eurostat, Statistics Netherlands (CBS), ZuivelNL

2005 2010 2015 2016 2017 2018 2005 2010 2015 2016 2017 2018

2005 2010 2015 2016 2017 2018 2005 2010 2015 2016 2017 2018

United Kingdom 3%

Belgium 21%

Ireland 10%

Italy 4%

Denmark 5%

Poland 4%

Spain 1%Other 7%

France 8%

Germany 38%

Import value2018: € 3.8 billion

Cheese Butter and butteroil

Milk and cream (in small packages for consumers) Other*

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Imports

Countries of origin of Dutch imports

source: Eurostat

Development Dutch imports

2005 2010 2015 2016 2017 2018 2005 2010 2015 2016 2017 2018

2005 2010 2015 2016 2017 2018 2005 2010 2015 2016 2017 2018

United Kingdom 3%

Belgium 21%

Ireland 10%

Italy 4%

Denmark 5%

Poland 4%

Spain 1%Other 7%

France 8%

Germany 38%

Import value2018: € 3.8 billion

Cheese Butter and butteroil

Milk and cream (in small packages for consumers) Other*

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source: Eurostat, Statistics Netherlands (CBS)*Milk powder, condensed milk, fermented products, whey and whey products, milk and cream (in bulk)

Top 5 destinations Dutch exports 2018

CheeseDestination quantity %EU 744 84.1of which: Germany 277 31.3 Belgium 110 12.4 France 85 9.6 Spain 58 6.6 Greece 39 4.4Japan 30 3.4USA 15 1.7Mexico 11 1.2Algeria 8 0.9Other 76 8.6Total 884 100.0

Non-skimmed milk powderDestination quantity %EU 45 26.4of which: Germany 12 6.7 Belgium 10 5.7 United Kingdom 5 3.2 France 5 2.7 Italy 4 2.1Kuwait 15 8.5Algeria 12 7.1Nigeria 11 6.6China (incl. Hong Kong) 8 4.7Other 80 46.8Total 172 100.0

Butter and butteroilDestination quantity %EU 266 90.8of which: France 86 29.4 Germany 71 24.3 Belgium 44 15.1 United Kingdom 17 5.7 Italy 13 4.3Japan 4 1.3Singapore 3 1.2Indonesia 2 0.8China (incl. Hong Kong) 2 0.7Other 15 5.1Total 293 100.0

Skimmed milk powderDestination quantity %EU 54 35.6of which: Germany 15 10.1 Belgium 12 8.2 Italy 7 4.8 France 6 4.2 Spain 4 2.8Nigeria 10 6.6Malaysia 9 6.2China (incl. Hong Kong) 9 6.0Yemen 8 5.2Other 61 40.5Total 151 100.0

million kg (including intra trade)

source: Eurostat, Statistics Netherlands (CBS), ZuivelNL

million €

million €

million €

million €

Other 15.6%

New Zealand 24.4%

USA 15.4%

Australia 5.1%

Argentina 2.5%

Mexico 1.9%Uruguay 2.1%

Belarus 5.1%

EU 27.9%

Dutch exports to third countries: 3.9 billion kg% of world trade: 5.0%

The Netherlands 5.0%

Germany 4.6%

France 4.0%Belgium 2.8%

Denmark 1.5%

Poland 2.2%Ireland 1.8%

Other EU 6.0%

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

Position of Dutch dairy exports on the world market 2018Export shares of the most important dairy exporting countries (total world trade 2018: 79.0 billion kg milk equivalent)



Consumption

Total consumption spending

€ 326.9 billion

Bread and bakery products € 7.3 billion

Meat and meat products € 7.0 billion

Potatoes, vegetables and fruit € 7.3 billion

Dairy, eggs, oil and fats € 5.2 billionOther foods € 9.8 billion

Food and non-alcoholic beverages:

€ 36.6 billion


Consumption spending of Dutch households 2017

Dairy in the Wheel of Five

(Dutch dietary guidelines) with milk, cheese

and yoghurt

The Netherlands has a long tradition of dairy consumption. For many Dutch people, milk, cheese, yoghurt and dairy desserts are part of their daily diet. The fact that dairy is also healthy is supported by the fact that the Netherlands Nutrition Centre has given dairy a prominent place in the Wheel of Five. This is an education tool to promote a good, safe and more sustainable food choice.

At 14%, the share of dairy in Dutch households' consumer spending on food and non-alcoholic drinks has been more or less stable for years. In 2017, this amounted to € 5.2 billion, or 1.6% of total consumer spending.

Dutch per capita cheese consumption has been above the European average for many years. On average, a Dutchman eats about 20 kg of cheese per year.

Consumption in international perspective 2017Per capita consumption (in kg per capita)

source: IDF, ZuivelNL

Drinking milk EU-28 60.7 United Kingdom 104.6Germany 53.4Italy 47.5France 47.4Belgium 46.8Netherlands 42.0

Australia 103.4USA 67.2Brazil 48.9Russia 34.1Japan 31.0Mexico 30.2South Africa 27.6China 20.3Turkey 19.1Egypt 13.6

Butter EU-28 3.8France 8.0Germany 5.9Netherlands 4.0United Kingdom 2.7Italy 2.6Belgium 2.2

Australia 4.7USA 2.6Russia 2.2Mexico 0.9Turkey 0.8Egypt 0.8Japan 0.6South Africa 0.4Brazil 0.4China 0.1

Cheese EU-28 18.7France 26.4Germany 24.3Italy 22.2Netherlands 21.7Belgium 14.6United Kingdom 11.8

USA 17.0Australia 13.5Turkey 8.0Russia 5.6Egypt 4.8Mexico 4.0Brazil 3.8Japan 2.4South Africa 2.0China 0.1


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) and traders by the organisation of Dutch Dairy Traders (Gemzu).

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

Industry and trade

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

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

www.gemzu.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 University & Research

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

Documents

Dutch dairy in figures 2018 · the dairy industry, aimed at capacity growth through modernisation, expansion and new construction. However, the strong growth in dairy farming led