Dutch dairy farmers gearing up for post-quota reality

Ireland is not alone in eyeing the end of the EU quota regime as a once-in-a-lifetime opportunity to expand milk production.

Nestled between Germany and Belgium, the Netherlands, a small country of 17 million people, faces out on to the icy waters of the North Sea. It is one of Europe's biggest milk producers – and one of Ireland's biggest competitors.

The country produces about 12 billion kilos of milk per year. Like Ireland, it is also heavily focused on exports, selling to more than 150 countries.

The Netherlands also had a head start. A century ago, as Ireland was tentatively inching towards independence, Holland was already exporting into Asia. Today, as in Ireland, the milk business is booming.

Nils den Besten is part of a young generation of Dutch dairy farmers. Young, educated and driven, the 33-year-old runs a 53-hectare farm 30km inland from Rotterdam. His father and grandfather both ran the farm, with Nils then joining the business and buying his neighbour’s herd in 2009.

Farmer co-ops

The farm, located on the outskirts of the village of Brandwijk, is similar in size and scale to most dairy farms in Ireland. Den Besten, whose own house is on the land, has a herd of 100 Holstein Friesian cows – a typical size for the Dutch dairy industry, which continues to be structured around small, individually owned farms linked to farmer-owned co-ops.

As we walk into the barn where the cows are kept, a cow is being milked automatically by one of two robotic milking machines, installed in 2009. Each animal wears an electronic tag which is scanned, telling the machine if the cow is ready to be milked, and information regarding the quantity and quality of milk produced. The automated system means that milking takes place 24 hours a day. “It’s of course a good thing,” smiles den Besten, “but it also means that you are on call throughout the night if something goes wrong.”

As we walk through the land, there is one noticeable difference from Ireland – though it’s early March there are no cattle visible. Most Dutch farmers keep their cattle inside for much of the year. With Ireland keen to market its credentials as an organic, grass-fed milk-producing country, is this a disadvantage for the Netherlands? “It is definitely a major discussion point in the Netherlands at the moment,” says den Besten, though he disputes the idea the milk is affected.

“The issue is one for society, not a scientific one. The image of cows grazing on the land is a powerful one that goes back thousands of years. I think it is important that we keep that connection between the cattle and the land. People, consumers, want to have small farms that produce milk in a sustainable way. “ Nonetheless, he believes the argument that cows benefit more from the nutrients in fresh grass is a subjective one. He also disputes any animal welfare issues, saying his herd can move freely around the shed, which is clean and airy, and air-conditioned in the summer.

Like most of his neighbours, den Besten sells his milk to Friesland Campina, the giant Dutch dairy co-operative formed after the merger of the country's two biggest co-ops in 2008. Here, the raw commodity is processed and produced into the myriad of innovative dairy and whey-based protein products that form the trade today.

Export growth

About one-third of the Netherlands’ dairy produce stays at home, with one-third going to

Europe

and a further third shipped to markets outside Europe, explains Tjeerd de Groot, director of the

Dutch Dairy Association

: “We are seeing the biggest growth in Asia and parts of Africa, as demand for dairy products increases there, while the population in Europe ages.”

While the Netherlands’ word-famous cheeses remain a stalwart, the sector has moved into the lucrative whey industry. The economic potential of whey powder – once seen as a by-product of cheese-making – has revolutionised the dairy industry, as demand for protein-based products such as infant formula, protein sport drinks and fortified meals for the elderly has surged globally.

As for the abolition of milk quotas, de Groot says the country is expecting an increase of up to 20 per cent in milk production – less than the 50 per cent being targeted in Ireland.