According to a report published by the Dutch Dairy Association (NZO), which represents the interests of Dutch dairy processors in the Netherlands, companies continue to invest hundreds of millions of euros in the Dutch dairy sector despite “tough economic times.”
Under existing plans, seven new dairy processing facilities will be constructed and a number will be expanded in the Netherlands over the next couple of years despite the current economic challenges.
NZO has pinpointed increasing international demand for Netherlands-made dairy products and the abolition of the European Union (EU) milk quotas in 2015 as the driving factors behind these investments.
Significant export growth
In 2012, the Netherlands exported around €5.9bn worth of dairy products to more than 135 countries. Neighbouring Germany is currently the largest export market for Dutch dairy products, but significant growth in demand is coming from emerging markets
Exports to China, Russia and Nigeria currently total around €450m ($590m), according to the report. This figure is expected to increase by around 7% each year.
In an attempt to meet this increasing demand, Dutch dairy manufacturers including FrieslandCampina intend to invest more than €700m over the next two years to increase capacity of their processing facilities.
Cheese maker CONO intends to plough around €80m into the development of a new cheese manufacturing plant, Vreugdenhil is planning to spend approximately €35m on a new milk powder facility, and Heerenveen-based A-ware Foods and FrieslandCampina have plans to invest around €500m.
AVH Dairy, Ausnutria Hyproca, Chinese Xian Consummate Industrial and Trading, DOC Kaas, CZ Rouveen en De Graafstroom also have plans to expand their production capabilities in the country.
The NZO expects that around 1,000 jobs will created as a result of these investments, adding to the 44,000 already employed in the sector.