Mega milk merger: FrieslandCampina and Milcobel join forces

Dutch dairy giant FrieslandCampina has announced a merger with Belgium’s Milcobel. The acquisition is a strategic move that will reshape the European dairy sector.

A combined 14 billion euros

The merger takes place against the backdrop of a highly competitive global dairy market. With the acquisition, FrieslandCampina not only strengthens its presence in Belgium but also its position as a leading player in Europe. The two companies have a combined turnover of more than 14 billion euros and operations in 30 countries.

Milcobel is Belgium’s largest dairy producer, with a turnover of 1.3 billion euros in 2023, but it has suffered setbacks in recent years – including a net loss of 11.6 million euros last year. The company, known for cheese brands such as Brugge and Nazareth, has had to carry out a reorganisation with the loss of 130 jobs and the sale of ice cream producer Ysco earlier this year.

Cooperative model remains central

The merger should lead to greater strength in key market segments such as mozzarella, milk and yogurt, while also enhancing efficiency and sustainability benefits. The companies stress that the alliance will have no negative impact on staff numbers.

Both companies operate as cooperatives, in which dairy farmers are both suppliers and shareholders. The new dairy group will process ten million tonnes of milk annually, supplied by nearly 11,000 farms and a total of 16,000 members. Before the merger can go ahead, the members of both cooperatives – and the competition authorities – must still give their approval.