13 January 2016

Dairy sector export value at 6.6 billion euros

In 2015 the Dutch dairy sector exported an estimated 6.6 billion euros in products. Major importers of Dutch dairy products in Europe over the last few years have been Germany, Belgium and France. Together with Hong Kong, China is the main market for Dutch dairy outside of the European Union.

Compared to 2014, dairy export value has dropped by 10%. This is chiefly due to the lower sales prices on the international market. In 2015, dairy prices were under pressure from the Russian boycott, reduced demand from China for milk powder, and the global increase in milk production. These preliminary figures do not take the export of infant nutrition into account, which include a major share of dairy ingredients. The export value of infant nutrition grew by 5% last year, reaching nearly 2.0 billion euros.

Growing milk supply

Dutch dairy supply grew by 6.9% in recent years to 13.3 billion kilograms. Farmers took on more dairy cattle. The high quality feed and the weather conditions had a positive effect on milk production.

Of the total processed volume, 35% remained in the Netherlands, 45% was exported to other member states of the European Union, and 20% went further abroad. Last year, the dairy sector accounted for 9% of the Dutch business trade surplus.

Favorable outlook

At today’s New Year’s reception for the dairy sector, Roelof Joosten, chair of the Dutch Dairy Association, emphasized that the outlook for the industry is good. “The dairy sector is in an excellent position. Over time, global demand will grow faster than supply, but in spurts. Over the long term, the outlook is definitely positive.”

Thanks to this strong outlook, the dairy industry has invested around 2 billion euros over the last two years in additional processing capacity in the Netherlands. In the meantime, new factories are being built and planned in Heerenveen, Borculo, Middenbeemster, Gorinchem and Cuijk.

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