Dairy giants FrieslandCampina and Milcobel announce intention to merge

Dutch dairy cooperative FrieslandCampina and Belgian heavyweight Milcobel have announced plans to merge to create “one international, future-oriented organization.”

The proposed merger is subject to approval by FrieslandCampina’s members’ council, Milcobel’s “extraordinary meeting of shareholders,” and antitrust authorities.

Based on the combined 2023 annual figures of the companies — excluding Milcobel’s Ysco business, which is being divested — the new, combined organization has a pro forma revenue of more than €14 billion (US$14.6 billion). 

FrieslandCampina says in a statement that member dairy farmers, employees, works councils, and trade unions have been informed about the merger proposal.

Combined, the company would operate in 30 countries, employ nearly 22,000 staff worldwide, and process a total volume of approximately 10 billion kg of member milk. This milk would be supplied by almost 11,000 member dairy farms owned by approximately 16,000 member dairy farmers in the Netherlands, Belgium, Germany and Northern France.

Sybren Attema, chair of the board of Zuivelcoöperatie FrieslandCampina UA, says: “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 capitalizing 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 realizing a leading milk price for our member dairy farmers, now and in the future.”

Value for farmers

Betty Eeckhaut, chair of Milcobel’s board, says the company’s goal remains to create added value for 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 organization provides great opportunities to grow in an international environment,” she adds. 

The boards of the cooperatives and executive management of the two parties have signed a framework agreement regarding the proposed merger. 

They aim to finalize a detailed proposal in the first half of 2025, which will then be discussed with the members of FrieslandCampina and the shareholders of Milcobel. 

The agreement will then be submitted for approval to Milcobel’s extraordinary meeting of shareholders and FrieslandCampina’s members’ council.

FrieslandCampina launched a reorganization program at the end of 2023 to optimize its business operations.