€700 Million Investment in Dairy Processing in The Netherlands
Dutch dairy companies plan to invest more than Eur700 million in processing plants in The Netherlands during the next two years, according to the Dutch Dairy Association (NZO).
Most of the investment will be focused on baby food and cheese production although innovation centres will also be established, creating over 1,000 new jobs. The investment is in preparation for the anticipated increase in milk production by Dutch dairy farmers following the abolition of the EU milk quota regime in 2015.
The dairy industry in The Netherlands currently employs 44,000 people. Dutch dairy farming has an estimated worth of Eur4.3 billion while the processing industry is worth Eur6.4 billion. There are approximately 20,000 dairy farms in The Netherlands and the average herd size is 80 cows.
The NZO study reveals that the dairy sector has been growing by an average of 7% per year despite the economic crisis, chiefly due to exports, which in 2012 were valued at an estimated Eur5.9 billion. Exports are being driven by growing global demand for dairy products, particularly in countries such as China, Russia and Nigeria.
