Dairy nation Holland. Modern sector. From local tradition to international business. Dutch dairy in figures 2013

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2 Dairy nation Holland Dutch dairy in figures 2013 Dutch dairy in figures gives an up-to-date overview of the Dutch dairy sector and is divided into eight topics: Dairy nation Holland Economic importance Market overview Dairy farming Milk processing industry Trade Consumption Organisations The figures for the year 2013 are provisional, but will only differ slightly from the final figures. Quoting data from this publication is permitted, provided that the source is acknowledged. No legal rights may be derived from this publication. For information: Design Printing ISSN Willemijn de Lint, Haarlem Media Krachtcentrale Dutch Dairy in Figures is a publication presenting a statistical overview of the main developments in the Dutch dairy sector in Even though economic conditions were generally less than favourable, this important and vital industry sector had a good year in Ongoing innovation enables it to respond appropriately to the growing opportunities offered by the global market. Modern sector The Netherlands is a dairy country. Production and consumption of milk, butter and cheese have a long tradition here, and the characteristic landscape featuring meadows with cows and windmills is inextricably bound up with how other countries see us. Behind this image a modern sector is operating which, with an eye for the welfare of man, animal and environment, has grown into one of the largest and most vital agricultural sectors in the Netherlands. As such, it makes an important contribution to the Dutch economy. The dairy sector is characterised by a high degree of specialisation, horizontal concentration, vertical integration and growing internationalisation and export. From local tradition to international business The current business model, with its strong international orientation, has developed in the past 140 years from a situation in which dairy production was mainly a farm activity focusing on local needs. This changed when the first dairy factories were set up around Production doubled between 1950 and 1980, increasing by 40% per capita. Substantial growth took place especially after 1960, when cooled tank systems were introduced and more and more farmers started using mechanical milking systems. This formed the basis for further international expansion. 2 Dutch dairy in figures Dutch dairy in figures 3

3 Dairy nation Holland Dairy nation Holland The scaling up of activities at farm level and in particular the availability of cooled transport facilities were important benchmarks in the development of the Dutch dairy industry. They resulted in a strong increase in the scope and scale of dairy factory activities after the sixties. A higher processing efficiency at a decreasing number of locations became the trend. In 1985 almost three quarters of the dairy factories that were in operation in 1960 had closed down. Nearly 18 thousand dairy farmers deliver 12.2 billion kgs of milk to the industry Milk quota scheme: a major influence The introduction of the milk quota scheme in Europe in the early eighties marked the start of a new phase in the development of the dairy sector. The scheme curbed productivity improvements in dairy farming that were achieved through expansion and more milk. More than before, efforts had to be aimed at more economic use of existing means of production. This led to accelerated development of operational efficiency, which was reflected in a steadily decreasing dairy herd and growing productivity per cow. Investments in more effective roughage production, improved feed quality and genetic selection via breeding programmes were responsible for this. Over 50 plants process 12.3 billion kgs of milk (including import, re-processing and stocks) In the dairy industry, curbing of the milk production resulted in strong capacity rationalisation, which in a general sense provided an additional impetus to the efforts to raise efficiency. Nowadays the Dutch dairy sector is one of the most consolidated industries worldwide. Most of the milk is processed within a cooperative structure. Such cooperatives, in which dairy farmers, as owners of the cooperative, took control of central processing of their milk, have a long tradition in the Netherlands. The largest cooperative, FrieslandCampina, is in the top ten of dairy companies worldwide. 15,0% 1,6% 15,0% 6,3% 1,6% 6,3% 8,3% 8,3% 13,0% 13,0% 55,8% 55,8% Utilisation Cheese of Dutch milk Cheese Milk powder Drinking Milk powder milk and other Drinking fresh milk milk and products Condensed other fresh milk products Butter Condensed and butteroil milk Butter and butteroil Other Other End of quota scheme: new opportunities The end of the milk quota system in 2015 will mark the start of yet another period in the history of the Dutch dairy sector. A period in which growing global demand will offer new opportunities. Based on their rich tradition of quality and professionalism, dairy farmers as well as dairy companies are now investing heavily in facilities that will enable them to use these opportunities in innovative and sustainable ways. They will be competing in the international markets so as to ensure that the dairy sector can continue to play its important role for the Dutch economy and Dutch exports. 65% of Dutch milk production is sold abroad, where the EU is the most important market 35% of Dutch milk production is consumed in the Netherlands 4 Dutch dairy in figures Dutch dairy in figures5

4 Economic importance Economic importance Contribution of Agro & Food to the Dutch economy in 2012 Added value Dutch economy: 538 billion source: Research Institute LEI Agro & Food 48.6 billion (9.0%) Other Agro & Food: 42.3 billion (7.8%) Dairy 6.3 billion (1.2%) Key statistics dairy farms 1.55 million dairy cows, 0.28 million dairy goats 1.2 million hectares of grassland and maize (28% of the surface area of the Netherlands) 12.4 billion kg milk production 22 milk processing companies, 51 dairy factories 300 wholesalers sales outlets jobs in production, processing, wholesale and retail Contribution to the national economy 1.2% (about 6.3 billion), of which: Dairy farming 13% Processing 28% Delivery 48% Distribution 11% Gross production value of dairy farming 4.9 billion (18% of total agriculture) Value of Dutch dairy production 8 billion Dairy farming Milk processing industry source: Dutch Dairy Board (PZ), Statistics Netherlands (CBS) 6 Dutch dairy in figures Dutch dairy in figures 7

5 500 Market overview Market prices 200 minimum: The dairy market developed well in 2013 despite the ongoing economic crisis. While this development 100 was primarily supply-driven, the continued strong demand, in particular from China, also constituted an important market factor in support of growth maximum: Dutch quotation for butter average: Quotation Long-term average ( ) jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 Dutch quotation for skimmed milk powder per 100 kg ex-factory, excluding VAT 500 Quotation Long-term average ( ) 1,2 400 maximum: ,0 average: minimum: ,8 100 jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 per 100 kg ex-factory, excluding VAT 500 Quotation Long-term average ( ) maximum: average: minimum: Revenue from milk On basis of Dutch quotations and world market prices for butter and skimmed milk powder 45 per 100 kg of milk with 3.7% fat jan-12 feb-12 mar-12 apr-12 may-12 source: Dutch Dairy Board (PZ) jun-12 jul-12 aug-12 world market EU market Market overview jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 sep-12 oct-12 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 nov-12 dec-12 In the first months of the year, milk production in major dairy regions such as the EU and the US remained low owing to the unusually long and cold winter. In parallel with this, a drought in New Zealand, coupled with the approaching end of the production season there, caused further restriction in supply. This resulted in sharp price increases of dairy commodities from late March on both the global and the internal EU market. In the second half of the year, improvement in the weather conditions, rising milk prices and relatively moderate feed costs ensured a gradual increase in milk production without this resulting in pressure on prices. The final outcome was that the year 2013 was characterised by exceptionally high average prices. The Dutch quotations for butter and various milk powders, as well as the average value indicators of Gouda 48+ cheese, were all 25% to 30% above the average level of The structural trend towards higher prices for whey powder continued also in jan-13 feb-13 basic price (on basis of EU intervention prices for skimmed milk powder and butter) mar-13 apr-13 may-13 jun-13 jul-13 aug-13 sep-13 oct-13 nov-13 dec-13 source: Dutch Dairy Board (PZ) Dutch dairy in maximum: figures Dutch dairy in figures Quotation Long-term average ( )

6 Market overview Market overview Consumer prices Retail prices of dairy products remained stable or showed a small increase in The price of drinking milk increased gradually, the average level being clearly higher than in The latter was also true for butter, but in this case this was to be attributed mainly to the price recovery that took place in the first half of the year. For cheese the increase in the price level compared to last year was very limited. In the yoghurt and dessert product category prices remained stable. Milk prices In the wake of developments on the (international) market Dutch dairy farmers saw their income from milk increase to record height. The average milk price was more than 16% higher than that in 2012, which meant that the level was at an all-time high. Thanks to the high prices, margins for dairy cattle farmers also rose strongly, making 2013 a good year for this sector. The results of the international milk price comparison confirm this positive picture but also illustrate that developments may differ strongly from one company to another. Dutch consumer prices Average 2006 = 100 International milk price comparison index per 100 kg Company Country /2012 Hämeenlinnan O. Finland % Granarolo (Noord) Italy % FrieslandCampina Netherlands % DOC Kaas Netherlands % drinking milk cheese jan-12 feb-12 mar-12 apr-12 may-12 jun-12 jul-12 aug-12 sep-12 oct-12 nov-12 dec-12 jan-13 feb-13 mar-13 apr-13 may-13 jun-13 jul-13 aug-13 source: Statistics Netherlands (CBS) yogurt, cream, desserts and similar products butter sep-13 oct-13 nov-13 dec-13 Milcobel Belgium % Arla Foods DK Denmark % Glanbia Ireland % Alois Müller Germany % Kerry Agribusiness Ireland % DMK (Nordmilch) Germany % Milk prices paid Dairy Crest (Davidstow) United Kingdom % 45 per 100 kg Sodiaal Union France % Danone (Pas de Calais) France % 40 Bongrain (Basse Normandie) France % 35 Lactalis (Pays de la Loire) France % First Milk United Kingdom % 30 Average % Emmi Switzerland % Netherlands EU Fonterra New Zealand % USA class III USA % jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 note: prices for standard milk with 4.2% fat and 3.4% protein (excluding VAT and including supplementary payments) source: Dutch Dairy Board (PZ), European Commission source: Agriculture and Horticulture Organization Netherlands (LTO) ( 10 Dutch dairy in figures Dutch dairy in figures11

7 Dairy farming Dairy farming Dairy herd Development of the dairy herd in 2013 was strongly influenced by the dairy sector s decision to accelerate the efforts focused on growth of milk production. Adding more animals was the only option available for short-term realisation of this growth. For this reason, milk production increased more or less in parallel with the growth of the dairy herd (+4.6%). The herd grew to 1.55 million animals, while the average milk yield per animal remained stable. Milk deliveries EU Development 2013 compared to 2012 (in %) Dairy cows (x 1 000) Dairy cows and milk yield per cow in the Netherlands Dairy cows Milk yield Milk yield (kg) PT -2,9% IE +4,8% ES +3,8% UK +0,8% FR +1,5% NL +5,1% BE +2,4% DK +4,0% LU +1,8% DE +5,8% IT +0,9% SE +0,3% PL +10,2% CZ +1,6% SK +3,3% AT +5,5% HU SL +3,2% -0,5% HR -19,3% FL -0,1% EE +13,6% LV +17,7% LT +4,8% EL -3,1% RO -2,7% BG -9,5% % -20 to to to -8-8 to -4-4 to 0 0 to to to to to MT +2,9% CY +6,5% source: Dutch Dairy Board (PZ), Statistics Netherlands (CBS) Scale of operation Scaling up of the Dutch dairy farms continued at accelerated pace in The average size of a cattle farm, expressed in milk production, increased to kg (+4.7%). The growth was markedly higher than in the past few years. The number of dairy farms showed a limited decrease (-1.7%). source: Dutch Dairy Board (PZ), Eurostat, International Dairy Federation (IDF), national statistics Milk supply In line with the development of production, Dutch milk supply increased by 4.6% in 2013, reaching a level of 12.2 billion kg. This meant that the growth rate in the Netherlands was well above the EU average (+0.6%). 12 Dutch dairy in figures Dutch dairy in figures13

8 Dairy farming Dairy farming 07 Milk production and quota scheme As a consequence of the decisions taken in the framework of the reform of the European dairy policy the milk quota scheme will terminate on 31 March In the run-up to this date the milk quota was increased for the last time, by 1% for the quota year 2013/14. This brought the total Dutch milk quota for deliveries to factories to about 11,972 million kg. The good price level, in combination with the fact that dairy farmers are anticipating the post-quota period in their business operations, resulted in an unprecedented overrun in the quota year 2013/14 (+4%). As a consequence, Dutch dairy farmers were required to pay a superlevy of 132 million, a record sum. It would seem that the quota system has now also lost its relevance in the Netherlands. Structural shortfalls have meant that the same happened years ago in most other EU member states. Utilization of Dutch milk quota % ,1% 10.5 billion kg Dutch milk deliveries Dutch milk quota +4.0% % overrun/shortfall +1.3% +1.4% +0.4% +1.2% +0.5% -0.4% /0606/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 source: Dutch Dairy Board (PZ), Netherlands Enterprise Agency (RVO) Milk production in perspective Dutch superlevy Overrun/ shortfall Superlevy million kg million 2005/ / / / / / / / / When 05/06 milk production 07/08 08/09 is plotted 09/10against 10/11 11/12 the 12/13 size *) of the population an indication is obtained of the scope for exports or the need for imports. With a milk production of over 700 kg per capita the Netherlands scores much higher than the global average (105 kg), making it one of the major dairy-exporting countries. In regions such as Asia, Africa and the Middle-East there are many countries with a relatively low per capita milk production, which is why these are important destinations for the international dairy trade, also from the Netherlands. Milk production per country in 2013, in kg per capita Data based on the production of cow s milk and buffalo s milk North and Central America USA 289 Canada 251 Mexico 97 South America Uruguay 682 Argentina 286 Brazil 170 Chile 157 Colombia 140 Venezuela 80 EU-28 Ireland Denmark 904 Netherlands 709 Lithuania 569 France 388 Germany 379 Poland 331 Belgium 304 United Kingdom 221 Italy 187 Other 204 EU average 305 source: Dutch Dairy Board (PZ), International Dairy Federation (IDF) Middle East Turkey 213 Iran 96 Saudi Arabia 61 United Arab. Emirates 4 Africa Kenya 96 Algeria 62 Egypt 61 South Africa 54 Nigeria 3 Per capita milk production worldwide: 105 kg Other Europe Belarus 718 Ukraine 243 Russian Federation 223 Azia Pakistan 214 India 102 Japan 60 South Korea 43 China 30 Thailand 13 Indonesia 4 Vietnam 4 Malaysia 2 Philippines 0 Oceania New Zealand Australia Dutch dairy in figures Dutch dairy in figures15

9 Milk processing industry Milk processing industry Milk processing In line with the increased milk supply, the amount of milk processed in the Netherlands also rose further in 2013, reaching a level of about 12.3 billion kg. Much of the extra milk was used for the production of cheese, which is by far the most important product category for the Dutch dairy sector. Cheese production stood at about tons, absorbing almost 56% of the quantity of processed milk. Besides cheese, butter and butter oil were also produced in higher volumes. Better export opportunities furthermore led to an increase in the production of non-skimmed milk powder. On the other hand, the quantity of milk processed into drinking milk and other fresh milk products again showed a decline, while the production of skimmed milk powder stagnated. After years of growth the production of condensed milk suffered a slight setback. Utilization of Dutch milk 2013 Butter and butteroil 1.6% Condensed milk 6.3% Drinking milk and other fresh milk products 8.3% Other 15.0% Milk powder 13.0% Cheese 55.8% Revenue The high price level for dairy products, in combination with the higher milk production, led to an increase in the value of Dutch dairy production in A record level of over 7.1 billion (+11%) was achieved, corresponding to per 100 kg of milk. Source: Dutch Dairy Board (PZ) Dutch dairy production million kg /2012 Milk delivered to factories % Milk available for processing % Drinking milk and other fresh milk % products 1) 2) Cheese (including quark) % Butter and butteroil % Non-skimmed milk powder % Skimmed milk powder % Condensed milk 3) % 1) excluding added ingredients 2) including cream 3) including coffee milk (evaporated milk) Consumptiemelk en -producten 9,3% Overig 13,0% source: Dutch Dairy Board (PZ) 16 Dutch dairy in figures Dutch dairy in figures17

10 Milk processing industry Milk processing industry Key statistics Companies 1) Number of factories Cooperatives Non-cooperative firms Number of employees Milk processed (million kg) Production value ( million) Lutjewinkel Limmen Katwoude Beemster Zoetermeer Bleskensgraaf Rotterdam Schoonrewoerd Gorinchem Maasdam Den Bosch Etten-Leur Veghel Molenschot Noordwijk Marum Gerkesklooster Leeuwarden Bolsward Heerenveen Workum Scharsterbrug Sloten Lelystad Nunspeet Zeewolde Nijkerk Nuenen Eindhoven FrieslandCampina 23 Delta Milk - Bleskensgraaf Ausnutria Hyproca 2 DVNutrition - Hoogeveen Bel Leerdammer 2 Farm Dairy - Lelystad DOC Kaas 2 Globemilk - Boxmeer Henri Willig 2 Hochwald - Bolsward Nutricia 2 Nestlé - Nunspeet Rouveen Kaasspecialiteiten 2 Kaasmakerij Özgazi - Etten-Leur Vreugdenhil Dairy Foods 2 Sloten - Sloten Arla Foods - Nijkerk 1 Vecozuivel - Zeewolde A-ware - Coevorden 1 VIV Buisman - Zelhem CONO Kaasmakers - Beemster 1 Zuivelhoeve - Hengelo 1) companies that process more than 10 million kg of raw milk and/or cream Meppel Rouveen Kampen Cuyk Rijkevoort Boxmeer Born Zelhem Dalfsen Bedum Beilen Balkbrug Ommen Hengelo Lochem Steenderen Borculo Hoogeveen Coevorden Structure At the end of 2013 the Dutch dairy industry comprised essentially 22 companies with a total of 51 production sites. The approaching end of the milk quota scheme and the opportunities offered by developments in the global dairy market have further provided an impetus for new investments aimed at capacity growth through modernisation or expansion of existing dairy factories or construction of new ones. Although not yet visible in the statistics, the results will gradually become noticeable as new installations come on stream. Top 20 largest dairy companies Company Country Dairy turnover ( billion) 1 Nestlé Switzerland Danone France Lactalis France Fonterra New Zealand FrieslandCampina Netherlands Dairy Farmers of America USA Arla Foods Denmark/Sweden Saputo Canada Dean Foods USA Yili China Unilever 1) Netherlands/United Kingdom Meiji Japan DMK Germany Mengniu China Sodiaal France Bongrain France Kraft Foods USA Müller 1) Germany Schreiber Foods 1) USA Morinaga Milk Industry Japan 3.6 note: turnover in mergers and acquisitions between 1 January and 15 June ) estimate source: Dutch Dairy Board (PZ), Statistics Netherlands (CBS) source: Rabobank 18 Dutch dairy in figures Dutch dairy in figures19

11 Trade Trade Trade balance Dutch exports in 2013 showed substantial volume growth in all key product groups. Higher exports and a higher price level resulted in a substantial increase in the value of exports, which amounted to over 6.7 billion (+21%). At the same time the value of imports also increased on balance, to almost 2.7 billion (+7%). This was due in particular to higher price levels and not so much to higher volumes. The biggest contributions to the increase came from cheese and milk powders. The substantial increase in the value of exports in combination with the limited increase in the value of imports resulted in a further increase in the positive Dutch trade balance for dairy products. At almost 4.1 billion, dairy products contributed over 8% to the overall Dutch trade balance. Trade balance in 2013 Exports The European Union is the main destination for Dutch dairy products, accounting for more than two thirds of the total value of exports. Trade with Germany alone accounts for almost 24%. The Netherlands is also the most active EU member state in the world market, with a share of over 5% in world trade. The main destinations outside the EU are Russia, China, Nigeria and Saudi Arabia. Cheese remains by far the most important export product, accounting for over 46% of the value of exports. Most of the cheese exports, which increased once again, went to countries within the EU. Considerably higher volumes were shipped to Belgium and the United Kingdom. The biggest growth market, however, was a non-eu state: Russia. Growth in butter related only to internal EU trade (France, United Kingdom), while exports to third countries decreased again. Non-skimmed milk powder goes mainly to destinations outside the EU (82%), such as Africa and the Middle-East. In 2013, however, the internal EU trade showed the greatest growth. Exports of skimmed milk powder partly recovered from the strong drop in This was to be attributed exclusively to strong growth of the internal EU trade while exports to third countries declined further. Exports Dairy products 6.7 billion Agricultural products 77.9 billion Total billion Dutch export value per destination 2013 Imports Dairy products 2.7 billion Positive trade balance Total 49.5 billion Agricultural products 27.1 billion Dairy products 4.1 billion Agricultural products 50.8 billion Total billion Other EU 9% Sweden 3% Greece 4% Spain 4% Italy 5% United Kingdom 6% France 15% European Union 4.5 billion Belgium 19% Germany 35% Other third countries 46% Russian Federation 12% China (including Hong Kong) 11% Third countries 2.2 billion Nigeria 7% Saudi Arabia 5% United Arab. Emirates 5% Kuwait 4% USA 3% Indonesia 4% South Korea 4% source: Statistics Netherlands (CBS), Dutch Dairy Board (PZ) source: Dutch Dairy Board (PZ), Eurostat, Statistics Netherlands (CBS) 20 Dutch dairy in figures Dutch dairy in figures21

12 Trade Trade Position of Dutch dairy exports on the world market 2013 Export shares of the most important dairy exporting countries (total world trade 2013: 63.0 billion kg milk equivalent) Uruguay 2.1% India 2.6% Argentina 3.5% Belarus 4.5% Australia 5.3% Other 15.2% Other EU 5.9% Netherlands 5.1% Imports The Netherlands also imports a substantial amount of dairy products each year. More than 80% of the imports come from neighbouring EU countries. Germany is by far the largest supplier, accounting for 45% of the total import value. Worldwide, countries such as Russia, China, Japan and the US are leading importers of dairy products. EU 23.7% USA 14.6% New Zealand 28.5% source: Dutch Dairy Board (PZ), Eurostat, Comtrade Italy 1.1% Poland 1.3% Denmark 1.8% Belgium 1.9% France 3.3% Germany 3.3% Dutch exports to third countries: 3.2 billion kg % of world trade: 5.1% Dutch imports of dairy products 300 million kg Cheese Skimmed milk powder Butter and butteroil Non-skimmed milk powder Top 5 exporting countries Cheese source: Dutch Dairy Board (PZ), Eurostat, Comtrade million kg index 2012 = 100 index Butter and butteroil index EU 1) New Zealand of which Netherlands EU 1) USA of which Netherlands New Zealand USA Australia Belarus Belarus Australia Total Total Non-skimmed milk powder index Skimmed milk powder index New Zealand USA EU 1) EU 1) of which Netherlands of which Netherlands Argentina New Zealand Australia India Uruguay Australia Total Total ) excluding intra trade source: Eurostat, Statistics Netherlands (CBS) Most important dairy importing countries in the world (outside EU) Including the share of the Netherlands China (including Hong Kong) NL: 4.5% Russian Federation NL: 5.5% Saudi Arabia NL: 8.0% USA NL: 5.7% Japan NL: 4.5% Mexico NL: 2.1% Indonesia NL: 7.8% Algeria NL: 5.7% Malaysia NL: 3.3% Philippines NL: 2.4% billion source: Dutch Dairy Board (PZ), Comtrade 22 Dutch dairy in figures Dutch dairy in figures

13 Consumption Consumption The Netherlands has a long tradition of dairy consumption. Milk, cheese, yoghurt and dairy desserts are part of the daily diet for many Dutch people. Dutch per capita cheese consumption has for years exceeded the (relatively high) European average. In addition to the traditional use of milk and dairy products, other dietary patterns have developed over the years. One of these was the rapid growth in out-of-the-home use. This has led to an entirely new range of dairy products; in this way, through product innovation, dairy companies are trying to respond to customer needs while simultaneously creating more added value for their products. Within the consumer budget for food, beverages and tobacco, the share of dairy products has been more or less stable for years, amounting to just under 11%. In 2012 this accounted for almost 4.5 billion, or 1.6% of total consumer spending. Consumption spending of Dutch households billion Meat and meat products Potatoes, vegetables and fruit Dairy products 1) Bread and bakery products Fish Other food products Total food products Drink Confectionery Ice cream Beverages and tobacco Total beverages and tobacco Total food, beverages and tobacco Total consumption spending Share of dairy products in: Total food products 17.3% 17.2% 17.1% 17.0% Total food, beverages and tobacco 10.8% 10.8% 10.8% 10.7% Total consumption spending 1.5% 1.6% 1.6% 1.6% 1) including eggs and margarine source: Statistics Netherlands (CBS) Consumption of liquids 2012 Drinking milk Mineral water Juices Syrups (ready to drink) Nectars per person in litres sources: Dutch Association for Soft Drinks, Mineral Waters and Juices (FWS), Dutch Wine Board (Productschap Wijn), Royal Dutch Association for Coffee and Tea (KNVKT), Dutch Brewers (Nederlandse Brouwers), Dutch Dairy Board (PZ) 24 Dutch dairy in figures Dutch dairy in figures25 Coffee Soft drinks Tea Beer Wine

14 Sector organisations Sector organisations Dairy sector related organisations The Dutch dairy sector is characterised by a high degree of organisation. Each segment of the production chain has its own organisation(s) to represent its interests. A large proportion of the dairy farmers are represented by the Dutch Federation of Agriculture and Horticulture (LTO Nederland), in particular by the LTO Dairy Committee, while there is also the Dutch Dairy Farmers Union (NMV). Industry is represented by the Dutch Dairy Organisation (NZO), traders by the organisation of Dutch Dairy Traders (Gemzu) and retailers by the Dutch Food Retail Association (CBL). Primary sector LTO Nederland NMV BBZ Industry and trade Dutch Federation of Agriculture and Horticulture: organisation for employers and employees in the agricultural sector Dutch Dairy Farmers Union: organisation for the interest of dairy farmers Farmhouse and Artisan Cheese and Dairy Producers: organisation for on-farm processors, active in defending the interests of its members and in product promotion Dutch Dairy Board to close its doors Most of the above-mentioned organisations have been represented on the Board of Governors of the Dairy Board since The Dairy Board is a statutory public organisation with regulatory powers in the field of legal measures, which are mostly quality related. It also acts as a collective instrument for funding of activities focused on market information, education, sus tainability, labour issues, animal health, food safety, research and innovation. Political decisions taken in 2012 led to government plans to dissolve the statutory public organisation system, and with that also the Dairy Board. At the end of 2014 the Board will close its doors. As a consequence, 2014 is a transition year in which various Dairy Board tasks have already or will be transferred to other parties. The Board s public tasks - relating in particular to the implementation of EU legislation (milk quota scheme, import and export schemes, school milk etc.) - have meanwhile been handed over to the Netherlands Enterprise Agency (RVO). New dairy chain organisation ZuivelNL At the initiative of NZO and LTO the private chain organisation ZuivelNL was established in January 2014, the aim being to continue a number of the Dairy Board s non-public tasks. ZuivelNL is an association formed by NZO, LTO and NMV in which other organisations linked to the dairy sector can participate. It is active in fields where cooperation between the segments of the dairy sector will create added value. This mainly involves themes at the interface of cattle farming and dairy product processing (food safety, animal health, sustainability, research and innovation) and some themes at the interface of product processing and trade (labour and exports). NZO Gemzu CBL Other categories PZ ZuivelNL RVO COKZ QLIP GD Wageningen UR Livestock Research NIZO Food Research Dutch Dairy Organisation: association of the Dutch dairy industry Dutch Dairy Traders: umbrella organisation for dairy traders ande other affiliated associations Dutch Food Retail Association: association for supermarkets and food service companies Dutch Dairy Board: public body for the Dutch dairy chain. This organisation will be phased out in the course of 2014 and will exclusively focus on the settlement of current activities and obligations Dairy chain organisation: association in which LTO, NMV and NZO collaborate on several dairy related themes where and when this is considered of added value to the dairy sector Netherlands Enterprise Agency (RVO): part of the Ministry of Economic Affairs, which focuses on business support The Netherlands Controlling Authority for milk and milk products: implementing organisation for control, specialized in quality assurance in the dairy chain Private organisation for analysis and certification in the dairy chain and agrofood sector Leading Dutch animal health and animal production organisation, active in a.o. animal disease control programmes Research organisation active in a.o. research on various dairy farming related themes Research institute for a.o. (dairy)product technology and milk quality Dutch dairy in figures Dutch dairy in figures 27