Dutch dairy cooperative FrieslandCampina and Belgian company Milcobel have announced their intention to merge aimed at creating a leading dairy co-op and dairy company.
According to the companies, the merger provides the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.
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.
FrieslandCampina merger
The merger of FrieslandCampina and Milcobel is aimed at creating 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, a statement from Friesland outlined.
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, e.g., in the area of sustainability.
Chair of the board of Zuivelcooperatie FrieslandCampina U.A., Sybren Attema said: “The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market.
“This 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.”
Chair of the board of Milcobel, Betty Eeckhaut added: “The cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger.
“Our goal remains to create added value for our member dairy farmers. Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future.
“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,” she added.
Company
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 billion euro.
It will then operatee in 30 countries, employ nearly 22,000 staff worldwide, and process a total volume of approximately 10 billion kilogrammes 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.
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.
