The merger aims to strengthen the organisations’ resilience and capitalise on emerging opportunities in the dynamic global dairy market while addressing ongoing challenges in the sector.
The proposed merger, which remains subject to approval by FrieslandCampina’s Members’ Council, Milcobel’s Extraordinary Meeting of Shareholders, and relevant antitrust authorities, is being presented as a future-oriented partnership with dairy as its core focus.
According to the boards of both cooperatives, the collaboration is expected to deliver significant business advantages, particularly in segments such as consumer cheese, mozzarella, white dairy products including milk and yoghurt, and high-value ingredients.
Both companies have informed their member dairy farmers, employees, works councils, and trade unions about the merger proposal.
Sybren Attema, Chair of the Board of Zuivelcoöperatie FrieslandCampina U.A., described the merger as a transformative step for both cooperatives, highlighting the synergistic benefits of the collaboration.
“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,” he stated.
Betty Eeckhaut, Chair of the Board of Milcobel, echoed these sentiments, pointing to the cooperative philosophy shared by both organisations as the cornerstone of the proposed merger.
“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.”
As reported by the companies, the combined organisation, based on the 2023 pro forma annual figures, will generate over 14 billion euros in revenue, process approximately 10 billion kilograms of milk annually, and employ close to 22,000 staff across 30 countries.
The milk supply, drawn from nearly 11,000 member farms owned by approximately 16,000 dairy farmers across the Netherlands, Belgium, Germany, and Northern France, reinforces the strength of this cross-regional collaboration.
Industry observers noted that the merger is likely to create efficiency gains and enhance sustainability efforts within the dairy value chain, as both FrieslandCampina and Milcobel bring decades of expertise in their respective markets.
The partnership is also expected to provide the scale and resources needed to drive innovation, boost production capabilities, and strengthen market positions in key dairy segments globally.
The boards of both cooperatives and executive management have signed a framework agreement to guide the proposed merger. The aim is to finalise a detailed merger proposal in the first half of 2025.
This will involve discussions with FrieslandCampina’s members and Milcobel’s shareholders, followed by a formal approval process. In addition, the merger remains contingent on receiving clearance from antitrust authorities.
Once approved, the partnership is poised to reshape the global dairy market, combining FrieslandCampina’s international reach and Milcobel’s regional strengths to create a robust, future-oriented dairy powerhouse capable of delivering value to its stakeholders.
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