Royal FrieslandCampina (RFC) and Belgian cooperative Milcobel have secured member approval to merge into a cross-border dairy cooperative effective 1 January 2026. We have shared the overview report of this potential merger back in May 2025,
The move reflects structural pressure on both organisations: RFC has lagged leading European peers on profitability for several years, largely due to weak margins in its cheese portfolio, while Milcobel only returned to modest profitability in 2024 after prior losses and disruption.
The consolidation will create a dairy giant with a combined annual revenue exceeding €14 billion, processing approximately 10 billion kilograms of milk from nearly 11,000 farms across the Netherlands, Belgium, Germany, and northern France.
📊 Key figures at a glance
By combining milk pools, assets, and portfolios, management aims to lift utilization and efficiency, restore competitiveness and stabilize earnings in an environment of tighter regulation, slower milk supply growth, and tougher competition in European cheese and dairy markets.
With member and regulatory approval secured, the risk has shifted from deal completion to delivery. The combined cooperative must integrate while managing restructuring, operational stabilization, challenging market conditions, and structural pressure on milk supply.
📘 What does it mean for competition? Find out in the A-INSIGHTS report by Dairy expert
The report also highlights:
- Strategic rationale & market context: Exploring the motivations behind the merger and its alignment with current market dynamics.
- Detailed impact assessment: Assessing profitability, milk supply dynamics, plant-network efficiency, financial health, sales channels, and regulatory considerations.
- Scenario analysis: Evaluating potential outcomes based on varying market conditions and integration success.
- Strategic options: Identifying alternative strategies and contingency plans.
- Conclusions & immediate actions: Summarizing key takeaways and recommended next steps.
📥 Download the full report.
