FrieslandCampina and Milcobel plan a merger to form a global dairy leader, targeting enhanced operational efficiency and market opportunities.
Two leading European dairy cooperatives, Dutch FrieslandCampina and Belgium’s Milcobel, have announced plans to merge, creating a new global powerhouse in the dairy industry. The proposed merger aims to integrate 22,000 staff and operations across 30 countries.
The cooperatives intend to finalize a detailed merger proposal by mid-2025, which will require approval from Milcobel shareholders, FrieslandCampina members, and anti-competitive authorities. If successful, the merger will result in a major player in the global dairy market, supported by nearly 11,000 farms and generating combined revenues of €14 billion ($14.5 billion).
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The newly formed entity is set to surpass the size of other European dairy co-ops like Arla Foods and Germany’s DMK, with anticipated synergies in mozzarella, dairy products, and sustainability efforts. Both companies look to strengthen their operational efficiencies amidst challenging market conditions.
FrieslandCampina recently restructured its organization but faced a €149 million ($154 million) loss in 2023, triggering job cuts. In contrast, Milcobel divested its ice cream division, YSCO, to focus on core dairy ingredients, which has been sold to Davidson Kempner, hinting at further international expansion under Glacier’s ownership, combining its expertise with Gelato d’Italia.
Sybren Attema of FrieslandCampina expressed optimism, stating, “This merger enhances our appeal to dairy farmers, partners, and employees, supporting a leading milk price for our members.” Milcobel’s Betty Eeckhaut underlined the cooperative philosophy driving the merger, aimed at providing value to member farmers and offering growth opportunities for employees and customers alike.
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